Drafting a Business Growth Strategy: Why Do You Need One?
Few businesses survive their first five years and the vast majority fail within the first decade. The explanation is straightforward. Companies either lack or fail to implement a tangible growth strategy.
As a small or medium-sized firm owner, you must begin slowly but maintain constant forward momentum. You need to tackle obstacles head-on and embrace chances whenever they present themselves. For this reason, your company must have a growth strategy to continue existing and thriving in the ever-evolving market.
What Is a Business Growth Strategy?
A business growth strategy is how a business owner or executive implements tangible, measurable, and quantifiable changes to the company’s operations. The purpose is to make your business more efficient, profitable, and practical while growing your customer base.
Your strategy should be easily explained to a board of directors or top executives in ten minutes or less while simultaneously satisfying your vision. Then, it should be translated into a plan that anyone in the company can clearly understand.
Why Do You Need a Business Growth Strategy?
If a tree is not growing, it is dying. It is the same with a business. If your company has stagnated and is unprofitable, you need a plan to get it growing and moving forward again. A business growth strategy is essential for the following reasons:
1. To Survive through the Tough Times
A business growth strategy will put your company in a position to succeed when times are tough. When the economy takes a dip, people are laid off, and fewer customers are buying your products, you need the means to maintain your business.
If you have a business growth strategy, you can cut costs in other areas of your company to offset losses in sales. The key to survival is growth. Without growth, your business is dead in the water.
2. To Market a New Product or Service
If your company has a new product or service that you want to market, you need a strategy to get the word out to your customers and prospects. You might have an incredible new product that you want to sell, but your sales will fail without an effective marketing campaign.
A business growth strategy clarifies all the steps of the marketing process. Besides that, it also presents how you will use them to achieve your goals. It lays out the tools you will use and the resources you will need. Then it provides a timetable for when the process will take place.
3. To Expand Your Current Business
A business growth strategy will help determine whether your company can accommodate a new product or service. If your company is already selling multiple products, it will help you determine how to grow your company best and increase your profit.
In other words, your strategy will help you determine whether you can afford to expand or whether you need to keep your current business moving forward.
Your business growth strategy will be the basis for all your decisions in the coming year or decades. The better your plan, the better your choices will be.
Finally, your business growth strategy should allow you to remain competitive, expand your business as you grow, and shift focus as necessary. It should put you in the best possible light to survive and thrive in the market.
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