How to setup a good plan to develop your business growth strategy?
Business growth is a target for every business owner whether it is just a small online business or a big company in the market.
Can you imagine how much effort is being made to maintain a developing process?
Your strategy is not only about your first success.
But it is also responsible for the growth process happening in your business.
So before getting to know the required steps to achieve that, let us know what does that mean?
- What is Business Growth?
- What is growth capital?
- The growth plan, what is this?
- A good growth plan
- The five stages of the journey of business
- What are the types of business growth?
- Business growth’s strategies
- The growth rate for your business
- The summary
What is Business Growth?
It is a point where your business is in a need for more measures to generate more profit.
The business increase is a state of the business lifecycle, industry growth trends, and the owners’ desire for equity value creation.
It also comes in many forms and must be well planned and customized to your unique business.
And it can be a lot of many things including sales growth, market expansion, and business value growth.
When you may simply want to grow your sales, there are many ways to achieve this outcome.
It may seem strange to say that you must ensure that increasing sales leads to more profit and value, but many businesses have failed because the owners were focused on short term sales growth.
Also choosing the right growth capital for your business takes a lot of market knowledge.
What is growth capital?
Capital is such an important section for growing a business.
It is an increase in the value of your brand or your products.
You want to take your business a little bit further, and that what the growth capital does.
Growth capital is made and created to support long-term health for your brand.
It also supports the idea of making your business achieves more targets.
Choosing the right growth capital comes down to the following sections:
1- The size of the capital raise.
2- The cost of the capital.
3- The flexibility of capital.
The growth plan, what is this?
The growth plan is a well-studied activity that allows business owners to plan and track organic growth in their revenue.
It allows you to be more professional in producing new revenues by focusing on what the customers can see.
It also helps you adapt to changes in the industry which are caused by the different strategies from your competitors.
A good growth plan
Planning for a good growth plan is so similar to planning for a good business plan.
It just works more on growing and developing your business.
Creating a useful plan takes so much time and effort, but you will know that it pays off later.
Your growth plan must include a few important things such as:
1- Financial goals are broken down regularly.
2- A marketing plan that shows your way of achieving growth.
3- A financial plan to help you decide what capital is suitable during your growth.
4- A gist of your company’s staffing needs and responsibilities.
The five stages of the journey of business
Having a successful business is not only about it’s increasing but its more about making it happens.
We all agree that it is very rare to find two companies being exactly the same, which means that their journey will be totally different from each other.
But like everything else, there are rules or a few steps that every business owner has to follow or to has to face during his growth journey.
The more prepared you are to face the challenges, the easier your process or your development gets.
let me shed a light on those stages, and let us dive in to take as much knowledge about every section.
1- Think and develop
Every successful business was just a simple idea at the very beginning.
Thinking of a business idea makes you a part of the business cycle.
Every business owner has to make full research before deciding that it is the time for the actual startup.
In this phase, the entrepreneurs should take advice and opinions about the business’s idea from everyone, even if you have access to reach any specialist in the industry in which you want to be a part of it.
And not only this, you have to ask yourself some important questions such as:
Does this idea fill a need in the market?
Will I be caple of making it fit in the market?
How do I establish a business structure and set up a good plan?
Will this idea make me achieve any profits?
The startup stage is the hardest for most businesses.
Sure starting a new business can be so exciting, but no one said that it is going to be easy.
According to some studies, 80% of new businesses fail during the startup stage.
You have to put in your consideration many things including raising money, hiring staff if you are going to have a small office to manage your business, establishing a customer base and market presence, and managing social media accounts.
which is a very important point that you have to give due attention.
3- Growth And Establishment
If your business reaches the growth stage, that means that you have overcome the start-up stage, and now you are generating revenue and growing your audience base.
The biggest challenge that is going to face the entrepreneurs in this stage is dividing time between a whole new range of demands requiring your attention and developing your old plan to meet the new market’s needs, responding and interacting with customers, dealing with the market’s competition, and etc.
In this stage hiring, smart and intelligent people is very necessary to achieve the most of your company’s targets during this stage.
This is the stage when you realize that your hard work is finally going to pay off.
At this stage, you will feel that you are doing things all over again and it is more like a routine.
You feel like running your business.
Your team is in place to handle all the roles that you no longer have the time to manage.
Your businesses in the expansion level will be faced to the need of gaining a bigger
market share as well as searching for new ways to stream in new revenues and profit.
This stage requires a well-studied plan and research before expanding into new markets.
Always be careful about getting too comfortable.
In business, if you are not moving a step forward then you are absolutely going back.
Expansion is an optional stage.
If you’re happy with where your business is currently, and you are satisfied with the ways it performs, then you can maintain it at this level.
But a simple reminder that the market always changes, today you are on the top, you never know what will happen in the future.
5-The maturity stage
Finally, this is the last stage of your business journey.
Your company should now be seeing and predicting the whole vision for a couple of years.
This stage relies on a financial source to help overcome the challenges to keep your business its won place in the market.
What are the types of business growth?
Every company seeks growth in one way or the other.
Every company has their strategies by which they can achieve growth by increasing its sales and profits
And every step of your business includes so many actions and types that you have to choose from them.
Every business aspires for growth and they achieve this by increased sales or by reducing the prices.
And here are the common types of business growth:
1- Organic Business Growth
Organic growth is the most basic but most effective means of growth for a business.
Organic growth is all about producing more products, services, and space for your business to success.
The businesses which focus on growing organically should aim to expand in order to achieve more of what they need.
2- Strategic Growth
Strategic growth is the one that focuses on the long-term growth of the business.
The businesses which focus on this type have reached a peak of the organic growth and are forced to find another market for their products.
This type of business growth is used to reach a market which was never used before by advertising power bank, that makes more products and add them to the current ones.
Strategic growth is considered as an unavoidable step for businesses which have reached a plateau in the growth.
3- Partnership or Merger
For some businesses merging, or creating a partnership with another business can offer them some unique benefits and opportunities for market expansion.
A good merger or a smart partnership can help a business enter a new market, produce more product, and gain the customer loyalty, not only this but it will present huge support when it comes to the customer services.
And let me tell you a very successful example of merging:
The famous Starbucks in India with the Tata Group.
4- Internal growth
This is a 50:50 step because it is considered as both easy and hard when it comes to promoting your business.
This kind of growth use the current resources of production and try to develop them in order to get a better way of usage.
Businesses find it often hard to use Internal business growth because this is not like expanding a business market our increasing the amount of the products.
But it is more about changing the whole strategy system and trying to create a new one which is very risky and scary to some of the business owners.
This step is also considered as a fair solution when it comes to choosing between organic and strategic growth.
Business growth’s strategies
The smart strategy is the key to your business’s success.
And when it comes to expanding your business there are several common types of strategies that have a huge effect on the growth process.
Some of the growth strategies
Market penetration: it is the first option for small businesses hoping to grow and expand their operations.
it is the percentage of your target market that purchased your products or services in a specific period of time.
It is about increasing your market share and reducing prices and improving quality.
New Channels: it is about increasing your distribution to new cities, countries or to new channels such as Selling through the use of mobile apps, selling online or Selling through subscription programs.
Share of wallet: it is a percentage of a customer’s total spend captured by the business.
Market expansion: it is a growth strategy where you can offer existing products to a new market.
For example, the fast-moving consumer goods companies that sell shampoos in the supermarkets but they began to sell them to business owners by repacking them to be used at hotels and etc.
Diversification: it is about investment in a whole new industry.
An industry that you have not worked at it before.
For example, a businessman who owns a travel agency decides to open a restaurant.
Premiumization: it is a competition that offers higher quality items that customers appreciate.
New business model: creating or figuring out a new market that didn’t exist before is a smart step.
Yes, it is very risky, but it will allow you to take an early leading step in the market without any competition.
For example, the introduction of mobile phones with a camera.
It made an essential effect on the electronics market.
Horizontal Integration: offering new products of your brand at the same level of your supply chain.
Vertical Integration: offering new products or services of your brand at a different level of your supply chain.
The growth rate for your business
Growth rates are the measure of a business’s increase or a specific change in the income and the capacity to expand over a set period.
This is why the growth rate should be a key focus in your plan’s strategy.
After all, you will need it to help plan resource use for the future and to possibly draw in investors looking for startups with potential.
So this only depends on how big is your business?
Growing your business is so important.
It is very successful to enter a market and leave your impact.
You must know that there are some stages your business is going through until it reaches the point of growing.
A growth process is an optional step that you may not be in a need for it now because of your satisfaction with what you achieved.
But sooner or later your business will need this step due to the market changes.
Choosing the right growth type is depending on your market and your vision.
Creative strategies are the key to early and quick success.
Growing your business includes so many strategies and each one of them is as effective as the other one.
It takes so much effort to be on top, no one says it is going to be easy.
But it takes more effort to maintain your process.
There is no standard for your growth rate, it depends on how big is your market and the kind of your industry.