Most owners of small and medium-sized businesses likely put together a growth plan when they're first starting out. It's a great idea and can help you chart a course for long-term success. But as businesses grow over the years, their material conditions, needs and even industries change.
Today, data from HLB Mann Judd suggests 80% of companies in Australia don't have a business plan at all. Even if you're a successful entrepreneur, it's a good idea to revisit that plan and see what's worked, what hasn't, and what needs to be updated for the next phase of your growth.
Set aside the time
A recent CPA Australia poll showed that fewer than half of small businesses expected to grow in the next 12 months, but even fewer reported having done so in the previous year. As such, while there may be many aspects of your business that are working as you'd hoped, it's worth noting that there's always room for improvement.
Creating a proper business plan, then, takes time and careful consideration. That means you would be wise to set aside several hours or more to going over all the metrics you track as a business and identify the areas of particular strength or weakness.
In small operations, you may feel you don't have the time or flexibility to clear a whole day, but doing so is vital to making sure you can devote proper attention to the effort.
Cash is king
The most important thing for a business to monitor is how much money is coming in versus what's going out. If your recent numbers aren't close to what you initially estimated, your trajectory probably won't account for what you need to do to keep growing.
For instance, even if your revenues are better than you expected, you might not be
maximising your profits if you're not properly positioned to take full advantage of your current and future business opportunities.
Focus on your employees and facilities
As you grow and change as a business, so too will your needs for staffing and housing your operation. A critical part of your growth plan should be charting a course for the number of people you might need to employ or the amount of square footage your business requires.
There's no hard and fast ratio for what constitutes the right payroll numbers or the proper facility size. However, you've likely noticed certain pain points cropping up when it comes to people having too much (or too little) work to do, or if your space is getting squeezed over a given period of time. These indicators should help inform decisions about adding or cutting staff, up- or downsizing your premises, adding locations and so on.
Consider the customers or clients
While you have a bird's eye view of your internal operations, you also can't share your
customers' or clients' view of your company. It is therefore wise to reach out to some of your patrons when reviewing your growth plans. They will likely be able to give you insights into your outward-facing operations that you simply can't get elsewhere, and those insights could inform some of the direction you take for future growth.
For instance, a recent Smarter Business poll found that while three-quarters of Australian small businesses rely on face-to-face interactions, only one-third of their customers preferred this method of communication.
Turn to the professionals
More than three in five business owners in Australia say they think they will be in better financial position in 2020, according to Get Capital. However, achieving that goal takes more planning for the future.
If you haven't taken another look at your growth plan recently, it's a good idea to start doing so on a regular basis, and revise for future conditions as necessary. Ulton can help you kick-start the next phase of your business cycle and make the most of whatever strategies you have in place already, as well as new opportunities that may have developed over the years. Get in touch with us today to find out more.
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