What is a growth plan?
A growth plan is a document that contains the objectives of your company and the strategy to follow to achieve its growth in the coming years.
That is, it is the same as the business plan but focused on the growth of the company. It is about defining a roadmap with the steps and deadlines to follow in this new adventure.
This plan is alive and can be modified over time according to the circumstances and developments that occur in the market.
However, it will help you start and carry out the expansion in an orderly and coherent way .
Do a SWOT analysis of your company
Before you start making a business development plan, spend a few hours doing a SWOT analysis . Identify the weaknesses, threats, strengths, and opportunities and record them in the document. It is a good starting point.
Remember that the SWOT analysis studies the following factors:
- Weaknesses: what disadvantages do you have compared to your competitors? What could you improve?
- Threats : is your market very saturated? Is it difficult to unseat the competition?
- Strengths : What to do better than other competitors? How is your business different?
- Opportunities : Are there any market niches that are not being exploited? Can you be more efficient and reduce costs?
What should you include in your growth plan?
1. Growth opportunities
Study the market , your ideal client , your competitors and how your evolution has been so far.
Then you identify growth opportunities, either by creating new products or services or entering new markets (or a mix of both).
Consider your options and determine what your value proposition is going to be. That is, what are you going to offer that differentiates you from others .
2. Financing plan
Surely the growth of your company involves an outlay in raw materials, human resources, promotion …
Make numbers and determine how much money you need to make it happen. If you don’t have it, look for financing.
It is important that you take into account all the expenses that may arise and the time it may take to obtain benefits; otherwise, you can see yourself in the red in no time.
3. Financial objectives
When your business grows and you invest in it, it may take time for you to recover the investment . Therefore, it is important that you are clear about your financial goals.
Analyze your profits, costs and income and establish financial objectives in the medium and long term .
4. Marketing and sales actions
How are you going to publicize your new product or service or how are you going to enter the new market?
As part of the growth plan, take into account this section related to marketing and sales.
Establish a clear strategy taking into account the most appropriate channels to reach your target audience.
Your marketing and sales plan will need to be strong enough to support your growth.
5. Your team’s needs
Analyze each of the members of your team and think about how they could improve their capacities to meet the objectives of the company.
Perhaps it is time to reorganize the structure, review processes and make sure that you are ready to grow.
It is also likely that you will have to hire new employees who provide other skills or who help you carry out the workload.
Mistakes to Avoid When Establishing Your Growth Plan
Now that you know what to do, you should also pay attention to the most common mistakes so as not to fall into them.
These are typical:
- Miscalculate the investment that will require the growth of your company.
- Not budgeting enough money to cover the first few months that you still won’t be generating income.
- Expect sales from day one.
- Not having a fund for contingencies or unexpected costs.
- Now, you have everything to start developing your growth plan! Be cautious and take the time to write this document. It will be of great help!