15 Jan 2020, 15:10 — 6 min read
In our previous article, we discussed the 4 types of growth strategies and learned how successful companies have implemented them. So the big question is, what’s next?
The next step is to develop your own strategy. But before you start, here are things you need to consider first.
If you aim for growth, you should not just set a strategy that is good for a year, but you should also make sure that it aligns with your long-term goals for the next three to five years.
Setting long-term goals can seem intimidating at first, but you can make it fun and interactive by collaborating with your team. Here are some things you should consider when setting long-term goals:
Being focused only on the present can be detrimental to your business moving forward. You need to know the trends of your industry or where the world is going and see how your business can keep up with it.
What makes your business unique? You have to fully understand what value you are bringing to your customers. From there, you will know how you can improve your position as a business and how you can improve your product to better serve your target market.
Considering your value proposition while you are developing a strategy can help you in sustaining long-term growth as you can clearly see the picture on how your business is different from the others.
Your business is nothing without customers. That is why providing the best customer experience should be one of your priorities. You can start from gathering and listening to their feedback. Create a customer feedback survey to see customers’ satisfaction for your business.
From there, use all the insights you have gathered on your growth strategy so you can build more relevance with your customers moving forward.
You must know the right pace of growth that your company can handle. Don’t crave for growth when you don’t understand the cost. Growth comes with a cost.
Numbers is one of the determinants for your business to successfully take off. Whether you’re a number person or not, understanding the financial performance of your business is required for your growth. Is your business cash flow positive? Is your business profitable or have achieved break even?
These numbers will help you in setting financial goals or targets for the following years.
Is your team ready to join your 2020 goals of business growth? If not, you’re in great trouble. As they say, teamwork makes the dream work. Your team will play a significant role in achieving your desired business growth. Thus, it’s essential that they are aligned with the growth strategy you want to implement.
Discuss and collaborate with them on how you can implement the growth strategy. Be open to suggestions and listen to their feedback.
If you think your current team is not enough or there are missing roles that need to be filled in, don’t be afraid to hire employees to fill those. Surely, it will add to your overhead expenses, but your business will suffer greatly if your current employees are overworked.
Also read: 5 effective ways to lead your team
As the head of the business, you must know the right pace of growth that your company can handle. Don’t crave for growth when you don’t understand the cost. Growth comes with a cost. It can be in the form of additional employees, meeting demands of the clients, and dealing with partners, etc.
This is how grocery delivery startup HonestBee went from great to closing their operations in the Philippines and other Southeast Asian countries. The growth was too fast that the founders were not able to keep up resulting to closing their operations. Within the first six months of operations, they managed to expand in Japan, Hong Kong, and Taipei. However, as they operated in other countries previously, it was reported that they were running out of money and the burn rate was too high due to “a business model with tight margins that’s largely unproven in Asia Pacific.”
On the other hand, Angela Chongo, founder of Mayumi Organics, knows the importance of growing at your own pace real hand. She got her first big break in the business after four years of operations. In an interview with GlobalLinker, she shared that pacing her business growth allowed her to have a balance in managing her business and her family. “There were a lot of sacrifices on my part to the point that I’m not going out anymore. I’m not seeing my friends. I missed a lot of special occasions. But everything is worth it. I wouldn’t change anything. I’m not aggressive when it comes to the growth of my business because I know I will get there soon.”
Also read: Giving up is not an option. This mompreneur got her million deal after 4 years of trial and error
Considering these factors when developing your growth strategy can help you map out the appropriate approach for your business growth.
Growing your business is possible; it can be done. You may have gone through a lot of challenges for the past years, but take heart, keep that hope, you deserve to grow! And the start of the year is the best time to develop your successful growth strategy. Remember, the desire for growth will remain a desire if you don’t create a plan for it. So keep the momentum going!
Image source: shutterstock.com
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