In today's competitive marketplace, a company's success is largely dependent on its ability to grow and innovate. In order to achieve the necessary growth in a timely manner, it is important for companies to develop a strategy that aligns with their core values and provides them with the resources they need to succeed.
A report by the Harvard Business Review found that "many companies are missing out on opportunities to create growth because they simply don't know where or how to start. The vast majority of executives say their organizations have experienced at least one period of significant revenue acceleration, but only about half said the same for profitability."
Developing a successful strategy is no easy task and requires a lot of hard work. It requires that companies look at their strengths and weaknesses, evaluate the competition to find ways in which they can differentiate themselves from others in their industry, determine how much money is needed for growth initiatives, identify where capital should be allocated (i.e., research & development or marketing), develop an acquisition strategy if necessary to supplement organic growth, and align a company's organizational structure to support the strategy.
In order to develop a complete and thorough growth plan, there are several steps that companies should follow:
Create your business goals, objectives, and the actions you need to take to achieve them. Create a plan to achieve those goals by determining what you need to do and when.
Include an estimate of how much money is needed for your growth initiatives, where that funding will come from (i.e., equity or debt), and any additional funds required in order to hit the numbers you set out as targets. Make sure your plan is realistic and achievable.
Create a timeline for all of your actions, milestones, and deadlines to achieve the goals you've set out.
Implement your growth strategy by establishing an organizational structure that supports it. This includes hiring new employees or outsourcing some activities if necessary in order to scale with high quality while keeping costs low enough to support your company's growth.
Use technology to create a scalable customer acquisition strategy that will fit into your new organizational structure. This is different from simply using technology for marketing purposes, which are important but have a less long-term impact on the success of your business model. Your business needs both in order to adapt and grow with you during all stages of your company's development.
As good as it sounds, developing a successful growth strategy is not easy or cheap to do. You need someone with experience and expertise in order to create the right plan that will lead you on the path towards success at all stages of your company's life cycle while evolving along with changing customer needs. Reach out if you need more insights - always happy to share notes on this.