It is difficult to start a business, and it is even more difficult to make it grow. The challenge of achieving growth is one of the most important things your business will face, and can determine its success or failure.
The Components of a Growth Plan
When you’re creating a growth plan, there are 2 components you need:
- a goal
- a way to measure growth
The first component, your goal, is what makes a plan your “perfect growth plan.” There is no definitive perfect growth plan, only one that is perfect for your business. You are the only one who knows how much you want your business to grow in the future and what is possible with the resources you have.
Growth isn’t a sprint, it’s a marathon. It’s better to achieve a moderate increase in revenue than to set an ambitious goal and not achieve it. Aim high , but be realistic and reasonable.
Start by understanding how your business is already performing to determine what your growth goal should be. Once you understand what you need to do to grow, it will be easy to figure out what you need to work on.
Your growth plan is only as effective as your way to measure growth. If you want to make sure your growth plan is working, you need to track your progress. Otherwise, you’re just setting goals.
There are many ways to measure the effectiveness of your growth plan, but the most accurate way to see growth is through your business success metrics. The things you are trying to improve are most likely the things you are focusing on. No matter what metric you’re tracking–be it revenue, the number of customers, or unique website visitors–it’s important to measure and track your progress so you can see your growth.
If you want to create a growth plan that you can actually achieve, you need to start with two key elements.
This creates a seven-step plan to perfect business growth.
1. Select the Metrics You Want to Track
First, choose the metrics by which you wish to measure progress. The metrics you use should be directly related to your business’s overall growth. What indicates growth for your business?
An increase in individual transactions may be beneficial for an ecommerce business. If you have a service-based business, you may be able to improve your business by doubling your lead-to-client conversion rate. The business growth you want to see should be the main driving force behind the goals you set. These goals should be specific andsomething that you can measure so that you can tell if you’re making progress.
You should always keep an eye on your revenue. Having more customers is excellent until you realize that your ad spending is cutting your profits in half. If you use your revenue as your anchor.
The only person who knows which metrics are most important for your business is you. After you identify the negative thoughts, emotions, or behaviors, you should make a list of them in a spreadsheet. If you keep all your belongings in one place, the rest of the process will be much easier.
2. Assess Your Current Status
You can’t plan for the future without looking at the present. You need to look at the status of the metrics you want to improve now that you know them. It means knowing how to make decisions based on those numbers This means knowing how to make decisions based on data and numbers, rather than simply knowing what those numbers are. To truly understand something, you must know its history and motivations. To ensure that your business continues to be successful, it is important to understand the things you are doing and the decisions you are making that contribute to your current monthly revenue of $60,000. You can gain an understanding of the situation through anecdotes or other metrics.
How many sales transactions are needed to generate $60,000 in revenue? How much are spending on advertising? What’s your net profit margin? To get a comprehensive understanding of your business’s current state, consider looking at these factors.
3. Set Your Growth Goal
Now that you are aware of what your metrics currently are, you can set a goal for growth. First, you’ll need to determine what type of event you want to plan. In order toplan an event, you will need to decide what kind of event you would like to have and what elements are necessary for that event.
- How much you want to grow by
- The specific metric(s) you want to focus on growing the most
Having a clear understanding of the current state of your business will make it easier to set goals and objectives. This way, you can create a perfect growth goal for your growth plan.
Just remember to be realistic. The retail giants Wal-Mart and Amazon didn’t achieve their current level of success overnight. It took them many years to grow into the powerful companies they are today. Pick a goal that is achievable. Hitting that milestone will better prepare you for continuing to grow in the future.
4. Plan your course of action.
After you have decided on your growth goals, you need to come up with a detailed growth strategy outlining how you will achieve these goals. We suggest writing a detailed growth strategy plan so that your team has a clear understanding of what you want to achieve and they buy into your vision.
The action plan should have a list of tasks that need to be completed, when they need to be completed by, who is responsible for completing them, and what resources are needed to accomplish the goal.
5. Determine your growth tools and requirements.
Before you take action on your plan, you need to find out what requirements your team will need to get through the process. The following resources will help you achieve your growth goals more quickly and accurately. Examples might include:
- Funding: Organizations may need a capital investment or an internal budget allocation to see this project through.
- Tools & Software: Consider what technological resources may be needed to expedite and/or gain insights from the growth process.
- Services: Growth may be better achieved with the help of consultants, designers, or planners in a specific field.
6. Execute your plan.
After completing your planning, resourcing, and goal-setting, you are now ready to execute your company growth plan and produce results for the business.
Throughout this time, make sure you’re holding your stakeholders accountable by keeping the line of communication open and comparing initial results to your forecasted growth goals to see if your projected results are still achievable or if anything needs to be adjusted.
There’s no one-size-fits-all solution when it comes to growing a business, but there are some general strategies you can try out. These may not work perfectly for every business, but they’re a good starting point.
7. Accomplish Your Goals and Look to the Future
The final step is to follow through with your plan. You can start trying new strategies to achieve your goal if you have a way to track your progress.
We know. This is intimidating. Since there are no definitive answers for what will work, experimentation is key. It varies for each business, depending on your sector, finances, ideal customer, and how they progress through your sales funnel.
The reason why it is important to know how your business is currently performing before beginning this process, is so you have a benchmark to compare your results to. It shows you what you can do if you change absolutely nothing. After you establish your baseline, you can start to see how your numbers change as you make adjustments. Not happy with the results? Return to square 1 and try something else.
Once you have achieved growth, you can identify new ways to improve your business. Your newfound profits can help your business to grow even more, for example by paying for a new warehouse, product launch, or website overhaul. You are the only one who knows what will help your business the most, and now you have the means to try out those new ideas.
For most businesses, the main goal is to grow. When making business decisions, company officials typically weigh what would help the business grow and be successful. There are several effective methods for promoting growth, which we will discuss in more detail below.
Types of Business Growth
There are several ways you can grow your business. Business growth can be broken down into the following categories:
A company grows organically when it expands through its own operations, using its own internal resources. This means that growth does not require external resources.
An example of organic growth is improving your production process so that you can produce more within a shorter time frame, which leads to increased sales. Some benefits of using organic growth include that it is based on self-sufficiency and doesn’t require borrowing money. Organic growth creates more revenue which can be used to fund other growth methods. We’ll explain that below.
Strategic growth involves developing initiatives that will help your business grow in the future. Strategic growth is defined as planning and carrying out specific actions in order to achieve objectives set by an organization. There are many ways to achieve strategic growth, but some common methods include developing new products or services, expanding into new markets, or improving operational efficiency.
Initiatives that are not organic growth often require more resources and funding. Many businesses choose to take an organic growth approach initially in the hopes that their efforts will generate enough revenue to invest in strategic growth initiatives in the future.
This strategy is often referred to as “optimization.” An internal growth strategy is a way to increase revenue by making internal business processes more efficient. This strategy is often called “optimization.” This strategy is similar to organic growth in that it relies on companies using their own internal resources. Internal growth strategy is all about using existing resources to create new opportunities for growth.
An example of internal growth would be making your company more efficient by cutting wasteful spending and automating some of its functions instead of hiring more employees. Internal growth can be more challenging because it forces companies to improve their processes and make them more efficient, instead of focusing on external factors like entering new markets to facilitate growth.
4. Mergers, Partnerships, Acquisitions
While mergers, partnerships, and acquisitions are riskier than other growth types, they can also lead to higher rewards. There are benefits to working with other businesses, such as breaking into new markets, expanding your customer base, and increasing the products and services you offer.
Growth Strategy Examples
1. Viral Loops
Some growth strategies are tailored to be completely self-sustainable. They need a push to get started, but after that, they mainly depend on users’ excitement to keep them going. The viral loop is a powerful marketing strategy that can help you quickly grow your business.
The basic premise of a viral loop is straightforward:
- Someone tries your product.
- They’re offered a valuable incentive to share it with others.
- They accept and share with their network.
- New users sign up, see the incentive for themselves, and share with their networks.
Instead of requiring a large number of leads, a viral loop funnel only requires one satisfied user to share with others. As long as every referral results in at least 1.1 new users, the system is sustainable.
2. Milestone Referrals
The milestone referral model is a system where people are incentivized to referral others in order to sustain it. Both regular referrals and milestone referrals are important, but milestone referrals are more progressive and complex.
Companies that take advantage of viral loops usually have a consistent, straightforward offer for individual referrals. On the other hand, businesses that use milestone referrals give rewards for hitting specific targets. Many milestones are based on metrics, such as the number of referred friends.
If you want to get referrals, you need to make sure your objectives are clear and your rewards are enticing.
Word-of-mouth is organic and effective. If your friends or family recommended a product or service to you, you would be more likely to try it.
The secret to why word-of-mouth is effective is because all people have a psychological bias where we think the majority knows better.
Social proof is important to all successful sales and content marketing strategies. Businesses care about their online reputation because it is important to their success.
The most important thing with word-of-mouth is to make sure the experience is positive for the user. To maintain a good reputation, you need a solid base of satisfied customers who will give you good reviews.
The key to success with this method is providing an amazing user experience, as users will tell others about your product or service if they’re happy with it.
THE PROBLEM: YOUR BUSINESS ISN’T GROWING AS FAST AS IT SHOULD!
Your sales have stagnated or decreased, and you cannot figure out why. Discover what is holding you back from achieving predictable sales growth in your business.
If you want to grow your business, you need a proven plan and framework. That is what you get with the 2X Your Sales Discovery Session.
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