Business in a Slump? It’s time to Growth Plan

Develop A Business Growth Plan

It seems like all we do is plan.  We write business plans, strategic plans, marketing plans, and disaster recovery plans. We plan our businesses to death.  In the early days of your business, your need to plan less. Personally, I am a planner by nature. Planning is how I organize my thoughts, how I mitigate my risks and develop my to- do lists. When our businesses are first being developed, we need to focus on the DO, and less on the planning. Yes, you heard me correctly. You need to plan less and DO MORE.

Let me explain.  This does not mean the abolition of “Planning” but rather it needs to evolve to Growth Planning. As a small business you always need to be in growth mode. This does not mean chasing the aggressive growth of early business days, but it does need to evolve to be focused on implementation and the “how” rather than the “what”.

A growth plan, in its purest sense, is a cross between a business plan and a strategic plan. A business that is growth oriented has to evolve with its customers, in needs to be in touch with the market, it has to be aware of trends and the social and environmental impact of its products or services.  Most importantly, a business that is not growing is stagnant and not healthy. It is reaching the peak of its life-cycle and beginning its decline.

Should businesses be in perpetual growth? Some people may say no. Some experts will tell you that a business where the owner seeks to exit, may begin to think about succession and naturally, as we age we begin a process of seeking to “slow down”.  However, think about it from viewpoint of a prospective buyer for your business. Would you rather buy a business that is healthy and growing? Or one that has shown decline over the years leading up to the sale? The answer from this perspective is simple. Focus on the growth, and the rest takes care of itself. The following are what I define to be the 10 Key Components of a Business Growth Plan.

The 10 Key Components of a Growth Plan

 1. Where Are You Now?

Examine the following for your organization:

  • a. Mission- this is the “DO” of your organization. What you do, and how you do it.
  • b. Key Success Factors – What do you do well or better than your competitors?
  • c. Key Constraints-What are you limited by? Who are you limited by? What is the financing available?
  • d. Stakeholder analysis-What do your customers think? How about your suppliers? Your employees? Your partners and family? Get everyone’s input, it matters

 

2. Where Do You Want To Be

 

  • a. Vision Statement-Define where you want to be in 5 years and build a vision for your company around it.
  • b. The Magic Number- What do you want your company to be worth in 3-5 years?  How much do you want to make? This is your magic number that you will be working towards.

 

3. What is Going on In Your Environment and Industry?

It is vital to understand what is going on in your industry and how your company fits into it. The following analyses should be conducted to understand how all the pieces fit together.

  • a. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats). Look inward and outward to your company and industry and judge how you fit.
  • b. Porter’s 5 Forces-This business school classic has staying power for a reason. The five “forces” of Porter identify how you work within the broader industry. It examines your customers, suppliers, competitive rivalry within the industry, the threat of new entrants and the threat of substitutes in the industry for your product or service. It creates a picture of how dependent or independent you can be of industry trends in general.
  • c. PESTLE Analysis (Political, Economic, Social, Technological, Legal and Environmental). This examines the broader trends in your industry, from each of the above contexts and how they can potentially impact what you do.

 

4. What have others in your field doing?

Competitor Innovation Analysis. In the history of your industry, how have your competitors innovated? Can this type of innovation still be useful to you? What products or services do competitors offer that are successful? Can you mimic them? What is not working? Is this something you are currently doing?

5. What are people doing in in other industries that can be applied to your Industry?

External Innovation Analysis- what are others doing that is innovative in another industry that can be applied to your industry? Can you change the business model of your industry to become more innovative?

6. Prioritize Your Current Opportunities

Prioritize opportunities based on a model that identifies needed inputs, available resources and constraints. Identify your resource requirements based on:

  • a. HR
  • b. Technology
  • c. Financial
  • d. Network and contacts needed to help you grow

 

 7. Do you Need Extra Capital or Resources to Make Growth Happen?

How will you raise it? What can you cut, divert or change from your current operations or business model to make this happen?

8. New Initiatives

What new initiatives will you develop? Identify your identify your CIPD Strategy- How will you Concentrate, Innovate, Penetrate (Market) or Diversify your company’s products or services?  This is the foundation of growth. Your CIPD Strategy can happen in any of the following areas:

  • a. Marketing
  • b. Sales
  • c. Technology
  • d. Partnerships
  • e. Alliances
  • f. Products

Find the ones that work best for your industry and company.

 9. Develop Your Implementation Plan.

Your implementation plan should be detailed and should include quarterly goals (financial and growth) and should identify key resources and steps needed to accomplish your vision and get you to your “Magic Number” of growth. Identify the riskiest steps, and develop action items to specific how you will address each item.

10. Just DO It!

At some point, you have to start growing your business. The faster you get this point, the faster your business will grow. For most entrepreneurs, this is the scariest, but most exciting part.  There are ways to make this manageable. Develop a daily checklist. Do 3 things every day that will grow your business in a solid way and contribute to growing your business based on your Growth Plan. A growing business requires daily infusions and care to push it forward, but not at the detriment of the owner.

Business growth needs to be sustainable, responsible but ever pushing forward and upward.  Implement these strategies, and watch your business and profits soar.

Do You Love What You Do?

Do You Really Love Your Business?

One of the things I never learnt in school was how to be a psychologist.  Over the years, I took psychology courses, but with a graduate and a professional designation, neither of which are in psychology, I am very ill equipped to deal with psychological issues or offer any kind of advice. Yet when Entrepreneurs come to me, confused about why their business is NOT growing, why they are stuck, I cannot help but notice their need to talk to someone, anyone who will listen to them talk about their business.  Many of these individuals have lost marriages, their families, close friends and relationships all because of their businesses. They are working 60+ hours a week to make their “dream” come true.  Then they come to me, tired, miserable and alone and ask, “Why?” Why is this business not working? Why is this not fun any more? We hear so much about work life balance, about taking time for yourself and to spend time with those you love, but we rarely hear about the need to balance your “business” with your life.

Many Entrepreneurs got into business because they love with they do. Be it cooking, baking, customer service or programming, you are passionate about a cause and you want to share that talent with the world. Most entrepreneurs are good people who genuinely want to improve the world with their contributions and talents.  However, this being said they will sacrifice everything around them for their business. They will ruin their health, their relationships and their Entrepreneurial spirit all for this business.Many Entrepreneurs defensively will say ” My business is my life” or that this “sacrifice” is needed in the early years. To both of these, I say phooey. The sacrifice is not needed and if your business is your life then you need to get a life.  Put yourself in your customers shoes. Who do they prefer to do business with, a rested, energetic, reliable individual, or the individual that looks like htey have not had a vacation in 5 years, who is tired, grouchy and cannot balance their family and work life? Who would you do business with?

How do we balance the love of what we do with the practicality and time requirement of early start-up? How do we balance?  My advice? Love what you do.Here are five ways that “loving what you do” will help you to grow your business and yourself.

1. If you love something, you set it free.

If you love what you do, you build it strong enough to survive without you. A business to be successful needs to survive without the entrepreneurs. It needs to have the straighten to stand alone and be independent from you.

2. If you love something, you nurture but don’t smother it

If you love something you nurture it, you give it what it needs but do not smother it. You give it what it needs to grow, but also the room to grow.

3.  As in Relationships, you also need Alone time from your Business

As in a relationship, you cannot always be “with” the one you love. Take some time away from your business to do the things you enjoy. This will help you to relax, grow as a person, and then give back more to your business.

4. You Business May Move Away Some Day

As with our children, we have to be prepared for the fact that our business will not be with us forever. It may grow beyond our capabilities, you may need to sell, you may need to leave it for retirement or health reasons, but that business will someday leave you.  How will you manage after the fact?

5. The best thing you Can do for those you love, is to take care of yourself

The best thing you can do for your business is to take care of yourself. If you take the time to nurture the other important things in your life, then your business will also grow, because your business is YOU. If you are tired, if You are cranky and cannot see the forest for the trees, guess what? So is your business, so do yourself a favour and if you really love what you do, then act like it, and please take care of yourself, those that are important to you and you will see how your business will flourish.