Why you Need a Business Growth Strategy
Updated: Feb 5
What Is a Growth Strategy?
Without a business strategy your company will bear a resemblance to something out of Alice in Wonderland!
• Alice: Would you tell me, please, which way I ought to go from here?
• Cheshire Cat: That depends a good deal on where you want to get to.
• Alice: I don’t much care where!
• Cheshire Cat: Then it doesn’t matter which way you go.
A company’s business strategy is an exclusive blueprint that shapes the basis of a business plan as well as providing guidance for day-to-day running of your company. Your business strategy needs to set out the main factors that distinguish your business from your competitors and add to your business’ long-term success story.
Most company’s business strategy is no longer than one page, some are a single sentence. Your strategy should regularly be conveyed to employees so that a unified business aim is always maintained.
Why Develop a Strategy?
All businesses should have a strategy, as without a well-defined, and carefully followed strategy, companies are inclined to lose sight of their direction, which could result in temporary difficulties. Keeping to a well-defined strategy will ensure that your business grows, and continually improves.
Your strategy will also be the basis of how your annual business plan is developed. Hence, it will provide a framework to consider mid-term changes, and will help establish direction for key areas in your company. A good strategy should last year on year, and furthermore, bind together one year’s business plan to the next, allowing to build upon the successes of the previous year.
Do not be Influenced by your Competitors’ Strategy
Any new business must vie for new clients, gain trust, and build a reputation, which takes time. It doesn’t happen by copying your competitor’s business model. Success involves being not just better but also different to attract potential customers. Consider the following:
• Selling to new customers has a 5% – 20 % probability of success
• Selling to existing customers has a 60% – 70 % probability of success
• Selling to previous customers has a 20% – 40 % probability of success
TIP: Where do you keep your old and new customer details. You need to know where ther are for GDPR and Data Security purposes, but also, so that you can re-connect with those who have fallen by the way-side. Consider also which vertical markets have you had success with, and who might be up for wriitng a testimonial for you.
Also, remember, you business needs to appeal to new customers, aswell as entice customers away from your competitors, and lure back previous customers.
Maintain Your Strategy
Many businesses, after having had a few successful years, begin to add completely irrelevant products or services to their line-up which just muddies the water. This could suggest to customers that the management has lost their way, so, whatever the size of your business, having a solid strategy, and continuing with it can make all the difference.
TIP: What are your most successful products/sevices? Who buys them? What opportunities are there to upsell these products with related products/services.
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