3 Essential Concepts for Successful Business Growth Planning

As a business owner, you’re likely aware of the importance of business growth planning. Growth planning helps you identify and prepare for changes in your industry, whether good or bad. However, attempting to create a growth plan without knowing the most important concepts is a recipe for failure. In fact, studies indicate that only 50% of startups last five years or more, sometimes due to a lack of effective growth planning. Keep these core concepts in mind as you start developing your growth plan.

Know What Sets You Apart From the Competition

The value proposition is the most important part of your growth plan. It identifies what it is that makes your business unique in the industry. There are many ways to approach this: perhaps your business provides products or services at lower prices. Or maybe your product is packaged in an interesting way that stands out above the competition. Find what makes your business valuable and stick with it as your company continues to grow.

Understand Your Customers

Knowing your customers is just as important as knowing your value proposition. After all, you can’t identify what stands out to your customers if you don’t know who they are. This is where buyer personas come in. Who are your ideal customers and what does your business do that solves their “pain points?” Having a subset of buyer personas will help you determine how your products and services will adapt to a growing consumer audience.

Determine KPIs and Measure ROI

Measuring ROI is critical to the success of your business. Imagine heavily investing in a new product, only to find out that it doesn’t sell and you’ve been wasting money. Measuring ROI is how you determine these types of situations before they happen. There are hundreds of metrics for measuring ROI; the trick is finding out which ones are most important to your business. Identify these key performance indicators (KPIs) and how they fit into your growth plan. For example, some common KPIs include:

  • Leads
  • Sales
  • Customer lifecycle
  • Website traffic
  • Conversion Rates

The foundation for a successful growth plan starts with knowing your products and your customers. This, combined with ROI insights, is how you create a strong, adaptable business growth plan.

Remember, running a business successfully does not need to be complicated.  Keep it simple!

For more information on business analysis, business planning, and ways to grow your small business profitably, please check out our website www.portalcfo.com.

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