Femal Business Owner Reflecting Business Confidence

Business Growth Starts with Clarity: Do You Know Where You’re Heading?

 Running a business can be all-consuming. 

There are customers to look after, bills to pay, people to manage, opportunities to chase and problems that somehow always seem to land on your desk. 

When you’re busy dealing with what’s immediately in front of you, it’s easy to lose sight of a much bigger question: Where are you actually trying to take your business? 

Most business owners want to grow. But growth means different things to different people. 

For you, it might mean increasing turnover, employing more people, or opening another location. It might mean building a business that can operate without you being involved in every decision. Or perhaps you simply want to earn more, work fewer hours, and have more time to enjoy life outside the business. 

None of those answers is wrong. The important thing is knowing what ‘your’ answer is. Because before you can build a growth plan, you need clarity about where you’re heading. 

Growth for growth's sake isn't the goal

It’s easy to assume that a bigger business automatically means a better business. It doesn’t. 

More customers can mean more revenue, but they can also mean more pressure. A bigger team can give you greater capacity, but it can also bring additional costs and management challenges. 

And growing turnover doesn’t necessarily mean you’re making more money – or enjoying running the business any more than you did before. 

That’s why it’s worth stepping away from the day-to-day occasionally and asking yourself: What do I actually want this business to give me? 

Your business should ultimately help you achieve your personal goals as well as your financial ones. 

Perhaps you want financial security for your family. Maybe you want to build something you can eventually sell. You may want to create jobs in your local community, have the freedom to travel, or simply stop spending every evening answering emails. 

Understanding what matters to you gives your business a destination. 

And once you know the destination, it becomes much easier to work out the route. 

A clear vision makes decisions easier

One of the biggest challenges facing small business owners isn’t a lack of ideas. It’s having too many of them. 
 
A new service. A different market. Another social media platform. A potential partnership. A new member of staff. An interesting opportunity somebody mentioned over coffee. 
 
Some will be worth pursuing. Others will simply distract you. 
 
Without a clear idea of where you’re heading, it’s difficult to tell the difference. 
 
A clear vision gives you something against which to test opportunities. Will this help us get where we want to go? If the answer is yes, explore it. 
 
If the answer is no, perhaps it’s something you can confidently leave behind. 
 
This becomes increasingly important as your business grows. As The Uspire Partnership explores in its guide to building a growth-ready business, growth creates more choices – and clarity helps businesses decide what really matters and where to focus.

Turn the destination into something tangible

A vision shouldn’t be a collection of impressive words sitting in a business plan that nobody looks at. It needs to mean something.

Try imagining your business three years from now.

What does it look like?

Think about the customers you’re working with, the products or services you’re selling, the size of the team, and the role you personally play in the business.

Then look at the numbers:

  • What is the business turning over?
  • What level of profit is it making?
  • How much are you taking out of the business?
  • What might the business be worth?

And don’t forget your life outside work.

  • How many hours are you working?
  • Can you take a two-week holiday without constantly checking your phone?
  • Do you have more freedom than you have today?

The clearer the picture becomes, the easier it is to identify what needs to change.

Now look at where you are today

Once you know where you want to be, you can start looking honestly at the gap between your business today and the business you’re trying to build.

You might realise that you’re too involved in day-to-day operations.

Perhaps too much revenue comes from one or two customers.

You may need a stronger sales pipeline, better margins, improved systems or people who can take greater responsibility.

This is where a vision starts becoming a practical growth strategy.

Instead of trying to improve everything at once, you can concentrate on the things that will make the biggest difference.

Ask yourself:

  • Where do I want the business to be in three years?
  • What do I want the business to give me personally?
  • What’s currently stopping us getting there?
  • What are the three most important things we need to change?
  • What can we start doing differently now?

You don’t need all the answers immediately.

But you do need to start asking the right questions.

Give yourself permission to think about the business

For many owners, finding time to think strategically can feel like a luxury.

There’s always something more urgent demanding your attention.

But working on your business isn’t time away from running it. It’s part of running it.

Even a couple of hours away from the phone, inbox and everyday distractions can give you the space to think differently about where you’re heading and whether your current priorities are taking you there.

The good news is that you don't have to work it out alone

Having someone outside the business ask questions, challenge your thinking and help you turn ideas into practical actions can make a huge difference.

At Business Doctors, we work alongside business owners to help them step back, get clear about what they want from their business and build a practical plan to achieve it.

Because inspiring growth isn’t simply about helping your business become bigger.

It’s about building a better business – and one that works for you.

Get in touch for a one-on-one conversation with a Business Doctor  or click here for more information on how to build a growth-ready business.

 

Businessman with two pieces of a jigsaw representing people and business

“A business growth strategy is a long-term document that sets out how your company will evolve to meet current and future challenges, identify new opportunities and give your company a purpose.”

Growing your business could involve:

  • Selling more products.
  • Increasing revenue.
  • Expanding products and services.
  • Moving into new countries or markets.

A business growth strategy is the foundation that will help your business grow, evolve, increase market share and respond to increased demand.

Unlike business and marketing plans that focus on achieving your short-term goals, a business growth strategy goes beyond what is happening in the market today; it will set out how your company will evolve to meet current and future challenges and help you identify new opportunities.

A business growth strategy will give your company purpose and clarify what growth will mean for your customers, partners and employees. It will help keep leaders and employees focused and aligned.

Planning to grow your business without a clearly defined strategy is a recipe for disaster. For example, scaling your sales operations in isolation without scaling the whole company could result in failing customer expectations, leaving you, your customers, and your employees frustrated.

8 Business Growth Strategies

Here are eight well-known business growth strategies for your consideration.

1 Market Penetration

The least risky growth strategy is to sell more current products to your existing customers, a technique perfected by large consumer goods companies. Finding new ways for your customers to use your product, like turning baking soda into a deodoriser for your refrigerator, is another form of market penetration.

2 Market Development

Devise a way to sell more of your current product to an adjacent market, offering your product or service to customers in another area. An example of a successful market development model is franchising.

3 Alternative Channels

This growth strategy involves pursuing customers differently, such as, for example, selling your products online. When Apple added its retail division, it adopted an Alternative Channel strategy. Another Alternative Channel strategy is using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service.

4 Product Development

This classic strategy involves developing new products to sell to your existing customers and new ones. If you have a choice, you want to sell your new products to existing customers. That’s because selling products to your existing customers is far less risky than having to learn a new product and market simultaneously.

5 New Products for New Customers

Sometimes, market conditions dictate that you must create new products for new customers. Apple pulled off this strategy when it introduced the iPod. The iPod was a breakthrough product because it could be sold alone, independent of an Apple computer. But, at the same time, it also helped expose more new customers to the computers Apple offered.

6 Turn your services into products

Service companies were among the worst hit by the pandemic. Consumers and businesses drastically cut service expenditures to conserve cash and avoid human contact. However, we’re still buying products that meet an immediate need.

Productise your services by developing a process, idea, skill, or service to make it marketable for sale to the public. Productisation involves using a skill or service internally and developing it into a fully tested, packaged, and marketed product. 8 ways to productise your service – Download eBook.

7 Turn your customers into subscribers

Nowadays, virtually anything we need can be purchased through a subscription, more conveniently than ever before. This emerging subscription economy offers companies considerable opportunities to turn customers into subscribers. Automatic customers are the key to increasing cash flow, igniting growth, and boosting your company’s value. Subscription models – Download the white paper.

8 Create systems that can grow your business without you

If your company lacks organisation around basic tasks and your employees are too dependent on you, implementing standard operating procedures could help to make your staff more autonomous. Download the definitive guide to standard operating procedures.

Strategic Planning for Successful Growth

Creating a business strategy is relatively easy, but it does take a little time and focus to get it right. It’s not always easy when you’re busy running a business, especially when urgent meets important; urgent usually wins.

Making the time is the first step.

A business growth strategy will help you scale your processes and instil disciplines into your workforce, supporting them with apt technology, training, coaching and leadership.

So, getting everyone involved from the start is essential so they understand what they’re working towards, why, and what they need to bring to the process. It will also give your business strategy the best chance of success.

Invest in a Strategy Day 

Invest in a strategic planning day off-site, preferably to reduce any distractions.

One way to ensure the best outcome for your day is to bring in an outsider to facilitate it and ensure it stays on track. Just as non-executive directors can bring fresh perspectives to some boardrooms, having someone on a strategy away day who is detached and focused on the day’s objectives could prove the difference between more chat and real strategic change.

Important Considerations for Your Growth Strategy

The Harvard Business Review Article The New Rules for Growing Outside Your Core Business, poses a great question, “If a few capabilities are the crown jewels of business, what are our crown jewels?”

This is a great question and food for thought. Here are a few more things to consider.

Is the Market Ready for You?

Evaluate the current and anticipated market demands alongside your current ability to meet those demands. Evaluate your existing customer portfolio and find opportunities to supply enhanced or complimentary products and services.

Is Your Business Infrastructure Ready?

If you don’t scale the rest of your business and sales increase, you may miss deadlines and experience lower standards, which can have a knock-on effect – an increase in customer complaints will result in poor staff morale. Further backlogs may occur as you attempt to resolve these issues by diverting already stretched resources.

Ensure your IT, production, distribution, logistics, billing, and customer service functions are ready to meet even a slight increase in sales.

Assess your workforce and ensure the right people are assigned to the right roles. Consider any skills gaps within your current talent pool and think about how you can develop or train individuals to support your growth.

How will you retain your new and existing customers?

Consider how your customers will be treated after the initial sale so that you will be their first point of contact at the time of product or contract renewal.

Ensure your existing customers’ requirements have been met before going out to the broader market.

Get your ducks in a row.

To expand, you must increase your reach with existing customers and acquire new ones. To do this, you need a value proposition clearly stating what you provide and why your customers need it.

Build a strong brand.

Building a brand is much more than a logo and a colour palette; your brand should be recognised by your values and measured by your customers’ experiences.

Think long-term

Invest time and energy in thinking about the future and what it may mean for your customers, partners and employees.

Develop a roadmap for success.

Once you have identified growth opportunities, you will need a clear business roadmap to help you reach your end goal.

Consider potential roadblocks

Once your strategy is in place, consider any potential issues preventing you from achieving business growth. For example, failing to manage your cashflow effectively or owning a company that cannot run without you can seriously hinder your ability to achieve long-term growth.

Summary

Planning to grow your business without a growth strategy is like driving a bus without a destination and no Satnav to show where you are going. Any obstacle could seriously impact your journey in this event; you will make decisions without an end goal and ultimately run out of fuel.

Your Strategic Plan should articulate your core purpose, values, and vision and be a rallying point for your stakeholders. It will act as a Satnav, provide you with a clear business roadmap and contain critical success factors to enable your business to address any challenges you may encounter along the way successfully.

If you have any questions regarding this blog post or need help facilitating your business strategy day, please get in touch.

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