In modern business, planning is not an interesting topic. Every business wants to boost traffic and increase their conversion rate but it’s not possible without proper planning.
The most important and vital step in increasing your business and revenue is to create an annual growth plan.
The most important step in setting annual growth plan is to set the goal first. And this article will guide you to design a plan
This post will help you in “HOW TO DESIGN A BUSINESS GROWTH PLAN”
If set aside time to plan it will much easier and quicker to grow exponentially. If you go into a business cycle with no idea what your goal is, it is more likely you will be lost on the way—and you will not even realize that you are lost because you do not know what you want to achieve.
What growth goal you should set
There are 2 questions that we are trying to answer in this blog:
- Which are the most significant factors in your business which you want to improve in the next 12 years to grow your business?
- At what extent you want to grow? What is your target?
Most of the people think about the revenue, not about the growth of your business. But the revenue is not only the variable which the owner should be worried about.
So, let us start with the variable and offer some possible targets.
What is the growth in true meaning?
The growth in real sense is to increase the Units Sale, not the revenue. If you ever think to increase the revenue without the real growth it would ultimately fail.
Different Growth Plans and Targets:
There is this term the “hypergrowth”. This is a phrase used a lot in Silicon Valley.
It’s nearly impossible to achieve hypergrowth without some kind of outside Venture Capitalist’s funding. That is a Unicorn status. Hyper growth is only possible if you have innovated something.
Next, there is Rapid Growth, which is doubling your business in the first and second years. In your first 12–18 months of business, doubling your growth is great. Rapid growth can also be difficult to achieve without outside VC funding.
So decide yourself: what suits you, and what year are you in business?
Steady Growth is a great business goal for bootstrap companies.
Mature Growth is 10–25% Year-Over-Year Growth. Mature growth is for those companies that have been around 5–7 years and are generally mature. There’s no shame in that, especially if they are in a market that is relatively flat.
Choose your growth variable (units, revenue, MRR/ARR*) and growth target amount (%)
*Monthly recurring revenue (MRR) and Annual recurring revenue (ARR) used in a subscription-based business model.
Just take a guess. Guessing is good. Guessing is how we learn. We guess we hypothesize. Then we validate.
So again recall and ask yourself: where you are? Are you in hypergrowth phase? Maybe rapid or steady growth is better for you.
I hope you do not settle for mature growth. You may look at that and say, “It’s fine.” Especially if you are in a market that is flat or declining.
Why do you want to be in a market that is flat or declining? That is hard.
So if you are landing in mature growth, you should think that it may be time to pursue a new opportunity.
Deciding on Your Goal
Increase [variable] from [benchmark] to [target amount] (a___% increase) by December 31st
The main things to be considered right now are the variable and the percentage. What do you want to increase and how much? Take a guess right now. Later, once you have done some form of validation, then you will write the full goal. Right now, this is just your notes.
Because you probably do not know where you are right now! Many of you have no idea how much money you made in the last 12 months.
You do not know these things yet, that’s why you cannot write the goal yet.
Focus instead on what variable you most need to grow. What is the thing that is going to really be impactful if you focus on its growth?
And what percentage of growth do you want to shoot for?
Taking some time to do this will help aim your business growth going forward and help keep pushing toward a goal.