A Simple Plan For Business Growth And Development
Most companies have no plan for business growth. Did you know that up to 25 percent of New Zealand businesses fail in the first five years? Now that’s an amazing statistic, isn’t it? And one of the main reasons such large numbers of businesses are folding is because they have failed to plan properly. You may have the best product or service, but if you don’t plan adequately, then your business will struggle. And this is certainly the case when it comes to growth and development. Leaving growth to chance and not adequately preparing for the future are common pitfalls. So what can you do to ensure your business is successful and sustainable? In this article we look at some strategies you can deploy to keep your company on track.
- Know your starting point
In order to plan adequately for future business growth, you need to have a firm handle on where you’re currently at. Every organisation needs to have a set of key performance indicators (KPIs) that reflect the health of the business. Try and keep it simple though with just a few measurements that really say something, rather than simply collecting data just for the sake of it. And so KPIs you could consider include the following:
- lead generation
- number of closures and conversions
- the outcomes from advertising and promotional activities
- website traffic and social media activity.
The truth is without some basic metrics in place, it’s difficult to know where you’re heading. And if you can’t measure it, then you can’t manage it either.
- Establish a value proposition
For your business to sustain long-term growth, you must understand what sets it apart from the competition. Identify why customers come to you for a product or service. What separates you from the competition and makes you relevant, differentiated and credible? Use your answer to explain to other consumers why they should do business with you. Having a clear sense of who you are and why you’re different will help to ensure that you play to your strengths and focus on your core offering and what you do best. Don’t expand into new business areas just because you can.
- Create a roadmap for growth
And once you’re clear about your starting point and your essential value proposition, it’s much easier to get down to the nitty gritty of preparing a roadmap to guide your business growth journey and reduce the risk to your business. The roadmap could be a detailed strategic plan complete with financial projections or it could be something simpler – maybe a rough outline of where you want to be. Whatever approach you take, it’s important to get the key personnel in your company on board so that everyone has a clear vision of the future.
Any roadmap should include the following basic information:
- A clear picture of the business’s current strengths, weaknesses and opportunities.
- A vision of where you want your company to be in say the next three or five years.
- An action plan that outlines how you will achieve that vision, including clearly assigned tasks and timeframes.
Consequences of failing to plan
The old adage that failing to plan is a plan to fail is certainly true in this context. And if you don’t grow, then it’s more than likely your competitors will at your expense.
Here at Generate Accounting, with our many years’ experience, we know the challenges your business is facing. We understand that the way to grow a business is through building sustainable revenue rather than cutting costs. We have helped many businesses just like yours develop their growth strategies to expand and develop. And so if your company is grappling with these issues then get in touch with Angus for a confidential discussion to see how we can help: angus@generateaccounting.co.nz or 09 358 5656.
