A successful small business knows it will grow. The most successful companies plan for it. This usually involves a valuable document known as a business growth plan. It is designed to detail the development of a business. It will include information about every aspect of the company’s operation. The plan will also include the abilities of the company’s management and more.
Not A Business Plan
According to an article in the Houston Chronicle, there is a big difference between a business plan and a business growth plan. Where business plans outline the start-up process for small businesses, growth plans take an advanced look at new business growth or expansion opportunities.
There are some things a small business owner must know before writing a growth plan. They must have a very realistic idea of the company’s core values. There must be an understanding of growth opportunities in the company’s industry. The plan must be flexible and able to be adapted when necessary. The company’s management must have a clear understanding of what is required to achieve growth. The plan should also have metrics to measure if it is working as anticipated.
When writing a business growth plan, it’s important that the small business owner be able to defend it, if necessary. In many cases, to achieve substantial growth, a small business may need to go to an external source to obtain additional capital. These funds could be provided by a financial institution, private investor, government program, and more. A well-written business growth plan can help make this process quicker and easier.
Proper Growth Rate
A small business owner should consider the rate of growth that’s appropriate for their business. If every possible growth opportunity is pursued, it could have an adverse affect on the company. It could overextend resources and decrease profits if not done correctly. A company with a slow growth rate may able to increase profits with investing in the latest technology and more.
When a small business has an effective business growth plan, its is able to attract outside funding. This funding has enabled many small businesses to grow from being local organizations, to ones that can conduct business on a national as well as international level.
Remember, running a business successfully does not need to be complicated. Keep it simple!
Check out our website at www.portalcfo.com for more tips on how to grow your business profitably.
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at email@example.com.