How to Plan for Small Business Growth?

Small businesses who want to grow and expand need a business plan. An ambitious road map for the next few years will be instrumental to your growth. The success of an enterprise depends on two things: planning and execution. This article will focus on the former. Here are some things you must do when you are formulating a business plan:

1. Set ambitious, attainable, and measurable goals

The key to having a road map is formulating short-term and long-term goals alike. Set quarterly goals so that you can make changes if things are not going well. Realising after a considerable amount of time has passed that you are not on the right path will be problematic for your company’s future. This is why you must have measurable goals whose progress you can follow.

Set ambitious goals but do not go overboard. Getting overambitious is harmful because you might end up disappointing yourself even if you achieve strong growth.

2. Define where you are and where you want to go

Before planning for the future, you should know where you stand. What is your value proposition right now? Why do people want to do business with you? What sets you apart from your competitors? Figuring out your strengths and weaknesses is an essential part of a business plan. For your roadmap, you should focus on your strengths and map out ways to overcome your weaknesses.

After figuring out where you stand, you should know where you want to go. What is your vision for your business? Do you want to foray into new territories and product lines? Or do you want to stick with your strengths? While drawing up a plan for the future, figure out what you want for your business.

3. Analyse the external environment

One important business growth strategy is analysing the external environment. Your business doesn’t work in a vacuum. It works within societal, legal, and environmental frameworks. Any changes in the external environment have an impact on your business. For example, after the coronavirus swept the world, many businesses knew that it was time for them to shift their business online. Many companies realised that they have to set up an infrastructure to work from home. Analysing the external environment means anticipating changes as well as reacting quickly to events as they unfold.

4. Identify your target audience

A business growth plan needs to identify the target audience. The success of your business plan is contingent on how your target audience reacts to it. Every business has a target audience. It works to solve the problems and make life easier for them. While you are planning, think about who your ideal customer is. Then, set out a plan that will focus on providing value to them.

5. Diversify

Diversification is one of the most crucial business growth tips. You shouldn’t rely too much on a few products. While it is natural that some products will drive most of your goal, you should work on diversification in case those products become redundant or go out of fashion. You can diversify by launching new products and services. You can also try an acquisition strategy, i.e., selling existing products and services to new markets.

6. Raise financial resources

For growth, you need investment. Investment can come from your funds, revenue from the business, and outside sources. Have a mix of debt and equity as capital to get the best out of your business. Tying up all your funds in the business is not a good idea. Instead, share your vision with potential investors and even banks. Get business loans at affordable rates to invest in your business. Remember, you need money to make money.

7. Study your competition

In a free market, businesses will often have strong competitors. Competition is good because it forces you to go out of your comfort zone and innovate to keep your customers. It keeps you on your toes. More importantly, there is always something you can learn from your competitors. You can’t excel in all departments; your competitors will always outperform you in certain departments. You can work on it by learning how they operate. You can even ask them for advice. Free exchange of ideas is better for you and them. The economy is not finite, and there is enough room for everyone to grow. Great market development strategy examples include studying direct competitors.

8. Your plan should be agile and dynamic

Once a business plan is set, you should stick to it. However, you shouldn’t treat it as gospel all the time. Your plan should be agile and should allow you to make quick changes to respond to internal and external changes. In a fast-moving world that is uncertain, be prepared to revise your business plan at any juncture or even throw it out if necessary. Especially with the Coronavirus pandemic, no one can predict the proceedings ahead of time anymore.

9. Make your plan based on data

A great business development strategy is to make your plan based on solid data. Your plan shouldn’t be the result of gut feelings and instincts. You need to write a plan methodically by using data. For example, you might have instincts that say a certain product will do excellent this year. However, data might show that its sales have fallen year-on-year over the past few years. Furthermore, data will also tell you where you can cut costs and increase efficiency.

You should leverage market data to come up with new products and services. Consumer behaviour changes in recent times can help your business plan immensely. For example, trends show that consumers are responding to modern means of marketing better than traditional means. Therefore, you should focus your energy on marketing via social media.

10. A robust marketing plan

Marketing is an indispensable element of every business plan. Launching new products or services will not matter if your target audience won’t know about it. You need to create a multi-channel marketing plan that focuses on establishing your brand and increasing its reach. Focus on social media marketing. You can hire someone to create content for your social media profiles. Moreover, try investing in paid promotion as platforms like Facebook and Instagram have extensive data on users, and you will be able to get your brand’s message to your target audience.

Conclusion

Business plans will be instrumental for your success. Combine various approaches and use your vision to come up with a fresh and innovative business plan to take your business to the next level.

Also read:

1) How small business promotes industrialisation?
2) Impact of Lockdown on Indian Economy
3) GST: Is this a benefit to the Economy?
4) How funding boosts Startups to redefine Indian Economy?
5) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. How do I market my small business?

Ans. Conduct market research and create a profile for your ideal customer. If you’re on a budget, social media has a great return on investment. You can use it to target your ideal customer. Moreover, you can also leverage traditional marketing channels if your ideal customer doesn’t use social media much.

Q. Does a small business need a financial statement?

Ans. Legally, businesses that have incomes lower than a certain threshold are not required to prepare financial statements. However, to assess your financial standing, you should prepare financial statements such as a balance sheet, income sheet, cash flow statement, net profit, and other relevant documents. This will help you understand how you are doing financially.

Q. How do I write a small business plan?

Ans. A solid business plan can help you raise finances through banks and small investors. Firstly, prepare an executive summary that tells the reader what your company is about. Next, prepare a company description, market analysis, marketing and sales ideas, funding requests, and financial projections.

Q. Do I need a business plan?

Ans. Every business, big or small, needs a business plan. It helps you to think ahead and use your vision to think about your company’s future. So, it is always a good idea to formulate a business plan.

Q. What are the types of business growth?

Ans. Here are the types of growth strategy:

1. Organic business growth: This is a manufacturing-based growth that seeks to enhance sales by increasing output.
2. Strategic business growth: This type of growth emphasises.
3. Growth by partnership/merger/acquisition: Growing the business by entering into a partnership, merging with another entity, or acquiring one.
4. Internal business growth: Growth by making use of available business resources. Rapid business growth: Growth in the short term by aggressive marketing, production, and staff increases.