What Is Business Growth & How to Create a Growth Strategy
Think about when you first started your small business. You probably had all sorts of plans and dreams for where you wanted to take it into the future. And those plans and dreams aren’t necessarily going to stop.
Instead, they’re going to evolve just like your business will. Growth can contribute to things like increasing your sales numbers and solidifying your position in the market. But the good news is that growth isn’t just measured by one or two metrics.
It can be measured by everything from revenue to your number of employees to company value and to how many customers you have. Below, you can find everything that you need to know about business growth and how you can create a solid growth strategy.
Here’s What We’ll Cover:
What Is Business Growth?
The growth of your business is fundamental to your survival. And as mentioned above, your business can grow and expand in more than one way. A lot of it is going to depend on the type of business that you operate and the products and services that you offer.
But you can monitor, evaluate and act on several different data points which help contribute to your overall growth. These can include:
- The growth in the number of employees
- The growth in the number of customers
- How your profits and overall revenue have increased
- The increase in the number of sales
- The overall value of your company as a whole
It’s worth noting that some businesses can grow in each of the above areas, but others only might see growth in a few. And these data points don’t have to be intertwined. For example, you can grow revenue without increasing the number of customers that you have.
Instead, your existing customers or clients could end up purchasing more of your products or services. You might even see some of the metrics increase and some of the others decrease. For example, you might have an increase in sales due to offering a product discount or a general reduction in price. But, this could still lead to revenue going down.
One of the main takeaways here is that growth is difficult and it can be important to focus on your main business goals. This can help contribute to growth in the main areas that are most critical to your operations.
How to Create a Growth Strategy
An important part of getting where you want to go is putting a solid growth strategy into place. Think of it as a ladder. You start on the bottom rung and work your way up towards the top.
Depending on the type of business you have, your growth strategy might include a few different elements. These elements can include:
- Investing more in customer acquisition
- Adding more business locations
- Increasing franchising opportunities
- Expanding your product line
- Selling your products online or across multiple different platforms
The biggest thing to consider for a growth strategy is that your specific target market and industry are going to have an influence.
Here are 5 actionable tactics that you can take to achieve growth opportunities.
1. Decide What Your Main Growth Area Will Be
This can often be one of the biggest challenges of a growth strategy. You obviously want to grow, but what exactly is it that you want to grow? Try and specify the main areas of your business that you want to focus on.
Here are some strategic growth initiatives you can consider:
- The number of employees
- Expanding your current office space
- Adding more office locations
- Expanding into a new region, city,, or country
- Adding new products or services
- Growing revenue
- Growing profit
- Growing your customer base
Your growth strategy can include more than one of these initiatives.
2. Conduct Industry and Market Research
It’s not worth focusing on expanding into a new market or adding new locations if you don’t know if growth will even be possible. Understanding the state of your industry is a powerful way to help understand the possibilities. Conduct some research into existing and potential customers and the existing industry as a whole.
3. Set Actionable Growth Goals and Plan the Course of Action
Since you have now figured out what you’re going to do and why you’re going to do it, it’s now time to figure out how you’re going to get there. Setting goals can act as a roadmap for your growth strategy. Just make sure that they’re realistic and achievable.
Once you have your goals in place, you can outline and plan how you’re going to act on them. Creating a detailed growth strategy plan can be a great way to fully understand where you’re going. Try and include action items, deadlines and any resources that are required.
4. Determine What You Need
What requirements do you and your team need to be able to meet your growth goals? Think about some of the specific tools and resources you need to deliver on your strategy.
These can include things like funding, such as capital investment or internal budget allocation. They can also include technological resources and services, such as consultants or designers.
5. Execute Your Growth Strategy
Your planning and goal setting are all finalized. Now, you’re ready to execute your growth strategy and achieve the goals and results you outlined. Be sure to keep open lines of communication with your team and hold any stakeholders accountable.
Plus, be sure to compare some of your initial results against your forecasted sales goals. This will allow you to monitor and see if the goals you set are still achievable. Or, if you need to adapt and adjust a few things.
Business growth can mean several different things. It’s going to depend on your type of business and the products or services you offer. But several data points can contribute to business growth.
Everything from increasing market share, sales growth, product quality, and growth in revenue. Use the 5 tactics and growth tools outlined above the help create a strategy for your business. You can achieve the goals you set and see rapid growth to take your business to the next level.
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