Why planning for business growth matters
Growth planning is an essential aspect of a business’ management. Knowing the direction in which the business is headed, and the scope of the organisation’s goals, is crucial in the increasingly competitive global marketplace.
At Gerald Edelman, we believe that business growth is essential for all business owners and entrepreneurs and are passionate in helping our clients continually build on success.
What is a business growth plan?
A business growth plan is a self-defined methodology a company can create to work towards their ambitions. It provides a rigorous framework which can include objectives, strategies, and plans for achieving business growth goals. It should also include the forecasts relating to the plan methodology.
In most cases, plans span a couple of years, but could be created for a period as long as five years. The length of the plan will depend upon the ultimate envisioned end game. They can help appropriate colleagues at all levels of seniority understand the objectives of their work clearly. However, business development managers, company executives, and other senior stakeholders are responsible for implementing growth strategies and they can use them to measure their successes and gear their work force towards further expansion.
Assessing growth metrics and defining them in the plan allows the company and its leaders to modify activity as needed in order to meet the overall goal they have outlined. The world’s most successful firms use a business growth plan to coordinate expansions which they envisage will happen in the future. However, the same applies to small businesses that want to set certain targets. A business growth plan can help owners to take small, manageable steps to achieving their biggest goals! Measuring actual results against those planned will help business owners to understand the extent to which the plan is working.
Why every business needs a growth plan
With a plan in place, a business has a clear direction. Having one can help leaders prioritise their resources and direct their juniors to do the same. They can also take corrective action to address any problem areas which are identified within the business. As advisers, the four key areas of a business that we look at and include in a plan are:
Having a business growth plan in place can help attract funding opportunities for certain organisations. If a company is able to tangibly demonstrate that it is organised and proactive in instituting growth policies, outside agencies with cash to funnel into your entrepreneurial venture may view investing in you as a lucrative opportunity, with scope for expansion and a return on their investment.
Having a plan in place also demonstrates strong management, making the business even more attractive to investors or buyers.
What should a business growth plan include?
There are a few things that are essential to include in your plan. The forecast numbers will drive the business, but it is also important to address the current state of your organisation. This can include your strengths, weaknesses, opportunities and threats which you can identify for the future. This can be extended to each of the four main areas of the business mentioned above.
You should also consider the position you want your business to be in during the foreseeable future. This means that you can define realistic scope for your organisation, whilst remaining ambitious about the potential to exceed your own expectations.
Finally, the most obvious component of a business growth plan is the actionable steps you can take to achieve your ambitions, as well as a schedule to meet your expectations. Having a time frame in mind for when you want to meet your goals is essential as it will help motivate your workforce to meet deadlines and allows you to be accountable to shareholders if relevant. Ensuring that an appropriate forum exists to regularly discuss progress allows management to work very much ‘on’ the business.
When to seek advice from an expert
Producing a business growth plan is no mean feat. It requires a business to collaborate within to identify a long-term strategy. An outside expert can be the ideal listening ear when assessing the state of your organisation and recommending strategic action to take.
At Gerald Edelman, we believe a business’ growth to be a crucial linchpin for future successes. We have extensive experience in helping clients achieve their potential and are experts in this field, having many growth strategies in place ourselves.
In the case of JK Educate, we worked with owners Katie and Lorrae to form a strategy for their business’ growth and corporate governance.
With regards to collaborating with us, JK Educate said that “Howard was more than our accountant, he became our strategic adviser, helping us think corporate and on a long-term scale.”
We are proud of the work that we have done to help quality businesses grow. Why not explore what we can do for your organisation?
To find out how we can support you, speak to our business advisers today.