Over 627,000 new businesses open each year, and at the same time, about 595,000 businesses close each year. So what makes these businesses grow to such an extent that they become self-sustainable and later a Multi-National company or a parent company having many sub-brands?
We all understand that planning is always essential when it comes to business, but in this volatile environment and market place, what decisions companies make and how responsive they are; plays a vital role in growing the business.
In this article, let us understand the core values and essence of a successful business and learn from their ways of planning and dealing with market scenarios during their growth phase.
Let’s understand how to plan your small business for its growth phase:
1) Focus on your marketing aims and objectives: For your business to grow, you require to promote your product/services to your target audience. Example: how many new clients you want to receive at the end of the period, and the expected size of your customer base. Keep in mind; branding activities can complete later on. First, you would have to focus on performance so that you get more revenue, and your investor’s interests met as they would be the fuel to your growth story by investing more when they believe your business is performing well in the market.
2) Plan your Operations/ Expansion optimally: Operations in business are vital elements when it comes to saving on costs and increasing the efficiency of the company. While planning for expansion, always keep in mind a few pointers such as where your new branch will be based/ which location you are going to expand to, who your suppliers will be, and the premises and equipment needed for expansion.
3) Financial Planning: Having a healthy cash flow in the growth phase is the secret to any business’s successful growth story. When you’re in the growth stage, there would be swift decisions that have to make. As I explained earlier that in this volatile market place, somethings might not execute as planned. Additionally, when you have allocated funds and healthy cash flow, you never miss out on opportunities in terms of investing in marketing activities during trends. Healthy cash flow includes, having a profit and loss forecasts, cash flow forecasts, sales forecasts, and audited accounts ready and updated.
4) Plan and allocate resources effectively: A business plan plays a crucial role in allocating through business so that the objectives set in the program can complete. For example, if a specific business unit or department has given a target, the business plan should allocate sufficient resources to achieve it. It could mean hiring staff, spending money on marketing, or buying more supplies or equipment. However, you should do precise budgeting to decide on the right level of resourcing for a particular unit or department.
5) Using expectations to execute your business plan: A good business plan will include a collection of objectives and targets. Setting clear goals and goals and closely monitoring their delivery can make the development of your business more productive. Realistic targets like Sales targets, footprints, and reach of your marketing activities.
6) Always review & improvise your business plan:
Once you’ve created a business plan and put it into practice, it needs to monitor regularly to make sure that objectives met and changes have to made according to real-time situations.
Following these pointers with a dash of innovate and doing something different from your competitors will help you grow your business from a small-sized office to many branches across the country.