Hope is Not a Strategy. Create a Business Growth Plan Instead.
As a founder or business owner, ambition and optimism are two of your greatest assets. Believing your business has what it takes to grow and thrive are prerequisites for making it happen. But that isn’t enough. The strategy of hope is not a strategy at all. Meeting goals requires a business plan detailing how you will get there. With a new year upon us, this is the perfect time to create such a plan. We’ll show you how.
Step One – Write it Down
You may have a business plan in your mind already, but that doesn’t mean it’s in any shape to execute. It may be missing key details, contain half-baked ideas, or need input from others. And as long as the plan lives exclusively in your head, it’s too easy to forget, ignore, or change its make up, leading to an inconsistent strategy. Business growth plans need to be written down, shared with other stakeholders, and fleshed out in-depth. It should address everything that growth will entail over the short and long-term and contain as much detail and specifics as possible. Length isn’t an issue – err on the side of more information. No matter how you intend to grow, record it in a document meant to inform everything you do in the coming months and years.
Step Two – Build Financial Models
We have written before about the importance of financial models. They are a key feature of any business growth plan because they reveal the path to the success of your business. When using a financial model, you’re not planning for growth that’s impossible to achieve or setting your sights too low, either. To build a financial model, you first need to define a goal (increase revenue by X%, acquire Y number of new customers, etc). Then, you need to project the costs to achieve that goal and the revenue you can expect based on past and future performance. When your financial models and business growth plan are closely aligned, success becomes closer to certain.
Step Three – Review and Revise
Growth plans can (and often must) evolve over time as circumstances change. Imagine how many plans took left turns after the Covid-19 outbreak. While it’s important to create a plan and follow it closely, it’s also important to amend the plans if and when warranted. Be systemic about reviewing the plan at regular intervals (at least quarterly). If something no longer makes sense or there are new opportunities on the horizon, revise the plan as necessary. Many companies take a circuitous road to success, and it’s thanks to those twists and turns (not in spite of them) that they achieved their ambitions.
When your growth depends on the plan propelling it forward, it’s vital to get that plan right. Let Proseer provide expertise, input, insight, and analysis on your growth potential and how to get there. Start your upward trajectory – contact us.
