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What is a Growth Plan & Why Your Small Business Needs One

Every business owner wants to grow their business, but most of them never set a plan for how they want to achieve that growth.

They take step after step to achieve growth, but because these steps are not coordinated, they fail to succeed.

Growing a business is hard work. It requires time, effort and capital.

And the best way to succeed and up your chances of success is to create a clear picture of what that growth looks like and how you intend to get there.

A growth plan does this for your business.

It is like a map that guides your business to achieve the kind of growth it wants when it wants.

It reduces the chances of your business repeating fatal mistakes and taking on unnecessary risks.

Not only that, but it makes it more likely that your business will identify and take advantage of opportunities of growth available to it.

And the best part, it does not have to be some formal document with so many pages, it can be a rough sketch that contains important aspects of your plan.

Elements a typical growth plan include:

  • A description of your growth goals and opportunities
  • Financial plan on how your business would fund growth
  • A description of your marketing plan and how it would contribute to achieving your growth.
  • Breakdown of what your business needs to achieve growth and action steps to close the gap.

Here are Four (4) reasons why your business needs a growth plan

1. Accelerated Growth

Without a growth plan, many businesses suffer from wasted efforts, misdirected steps and ultimately delayed growth.

A growth plan makes sure all your team are on the same page as to what your growth objectives are, what steps you plan to take to achieve that growth and what their roles and contributions to that growth are.

This reduces the chances of missteps and wasted efforts and instead helps the business to achieve its growth goals faster.

2. Set Realistic Growth Goals

A growth plan helps small businesses to set realistic goals for growth.

There are cases where business owners arbitrarily set growth goals without evaluating the state of their business.

This often leads to the business’s inability to meet its goals.

But with a growth plan, businesses have to evaluate their business ability as well as gaps that might hinder their ability to achieve growth goals.

If they are unable to meet those needs, they review their goals and set more realistic ones given their status.

3. Create Room For Accountability

Usually, at the end of a quarter or a year, when businesses review their growth plans, they can narrow down individual and departmental contributions to growth, highlight where they feel short, ask for feedback and make recommendations to ensure that they perform better in the future.

Instead of the typical blame trading and whatnot that results in less-than-productive results.

4. Clarity of Growth

A growth plan paints a very clear picture of where the business wants to be, how and when.

It eliminates any misunderstanding. Because it is communicated in simple and clear terms, that is easy for anyone to understand.

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Photo by Isaac Smith on Unsplash