Creating a Company growth plan can assist you in identifying and putting action strategies to increase revenue, grow your clientele, or develop new products.

What is Company Growth?

Company Growth is the process of growing a company to make more money. A company can expand in one or more ways to accomplish this. Some common areas include:

• Product Development
• Sales & Marketing
• Brand Recognition
• Customer Base
• Employees Productivity

Most companies’ growth plans for planning future expansions. This helps company management and other stakeholders to properly track the growth. By evaluating growth metrics, the company can change its strategy as necessary to achieve the overall goal outlined in the development plan.

Growth Strategies in Company

• Market Expansion Strategy

A market expansion growth strategy entails selling current products in a new market. For example, if you are selling earphones in India; you can start selling the same in other south Asian countries and acquire new customers.

• Product Development Strategy

Product development strategy refers to the methods and actions used to penetrate a market or modify existing products to create new business.

For example, Apple follows product development strategy. They introduce new iPhone with new features and design. Moreover, they bring new products like Apple watch or EarPods to expand their products offerings.

• Market Penetration Strategy

A market penetration strategy is a product market strategy whereby a company seeks to gain greater dominance in a market in which it already has an offering. One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help a company increase its share of the market.

• Diversification Strategy

Diversification is a combination of market and product development strategies. When diversifying, instead of focusing on a single endeavour, you consider new products and services you might offer to new markets. For example, a western cloth company launching Indian ethnic clothes when coming to India.

How to develop a company growth plan

Follow these steps to create a company growth plan:

• Plan your objectives

Decide what you want to accomplish at the end of the plan before you start your growth strategy. Normally this requires deciding on the growth strategy you want to use. Consider which approach is the most practical and affordable for your company, plus which one might result in the most growth. Use SMART strategy to plan your objectives:

• • Specific: Make you objectives well defined, clear and unambiguous. For example, set a specific target of say 12% to increase revenue instead of setting an ambiguous target
  • Measurable: Set specific criteria that measure your progress towards the accomplishment of the goal. For example, a goal to increase revenue by 1% every month
  • Achievable: Set your target that is attainable and not impossible to achieve
  • Relevant/Realistic: Set your target that is realistic and relevant to long term targets of the company
  • Timely: The target should have a clearly defined timeline, including a starting date and a target date
• Choose your metrics

Decide how you’ll evaluate your success. Think about strategy you’re pursuing while choosing appropriate metrics to evaluate. For example, in case of  product development strategy, Evaluate total expense of research, development and production cost and then compare it to total sales of the new product or service.

• Consider your timeline

Use the deadline established in SMART goals to set short term benchmark along the way. This will help to track progress and alert any shortcomings in the growth work.

• Make a Plan

Create a step by step action plan for everyone involved in company growth plan. Determine who is in charge of carrying out action on each step so that everyone is aware of their obligations and expectations.

• Meet with stakeholders

Share your plan with internal and external stakeholders. Seek feedback from everyone. Make changes in the plan considering the shared feedback before distributing it widely.

• Implement and Adjust

Implement the action steps after the approval of plan by all parties involved. Regularly evaluate the plan to ensure the progress is as expected to meet the growth goal. Adjust the plan as needed.

Tips for creating an effective company growth plan

The major tips and steps in building an effective company growth plan are discussed below:

• Evaluate your company: Know you company strength and weakness. Make your growth plan on the company’s strength.
• Conduct market research: Analyse the market and study about competitors. Find out whether the growth plan will work in market or not.
• Evaluation: Employees are very essential for any company’s growth. Company growth plan must include both employee assessments and staffing requirements.
• Learn from other successful business growth plan: Often you can learn from the experiences of other companies to design growth strategy.
• Marketing: Marketing is essential part of company’s growth plan. The growth plan should have marketing professionals.
• Consulting: A great method for fostering long-term working relationships with several business owners is by gathering information & advice directly from them. Also, connecting with other business owners will also create certain future opportunities, from new market customer acquisition to certain collaborations on social media.