You really want to grow your business. But you don’t have a clear idea of where to begin. You’re not alone! Many entrepreneurs and business owners are or have been in the same situation at one point or another in their careers.
Things could be a tad easier if all you needed to grow your company is to take on more projects and serve more customers. Unfortunately, sustainable growth requires more than that. It calls for strategic planning and thoughtful execution. If you want to grow your company by attracting quality leads and converting them more effectively, then you need to create an effective growth strategy. Here are 5 crucial steps to creating a growth strategy that delivers impressive results.
Business growth is just like planning a vacation. Knowing where you’re going will make planning a little bit easier. If you can predict the net worth of your business in the next 5 years, it would be much easier for you to develop a strategy that will help you get there. In simple terms, it’s more valuable to begin at the end and then work your way backward. You should do the same with your growth strategy. To get started, set long-term ambitious yet reasonable goals. Here are a few questions you need to ask yourself when setting long-term goals, for instance, your 5-year goals.
By working backward, it’ll be easier for you to come up with reasonable goals and objectives of where your business should be in the next four years, two years, and one year to achieve that 5-year goal.
With your long-term goals already set, the next step is to define your KPIs. Match each goal with the most important metrics and results, which will enable you to assess whether or not you’re heading towards achieving your goals. One of the most important metrics you should determine is the North Star metric, which is basically the number that best denotes the value customers get from your customers.
If you have an eCommerce business, you can go with customer lifetime value as your North Star metric. Once you have determined your North Star metric, gauge where you’re currently at as far as this metric is involved, and deliberate on how much the metric should improve to realize the growth you’re envisioning.
Developing useful experiments to carry out is a little bit tough. Waterfalling is the most common mistake that companies make when introducing new product features or promotional ideas. Waterfalling happens when a team keeps on adding new requirements to a project at hand to the extent that the time needed to execute it continues increasing. Consequently, a project that should have taken just a few months to implement ends up taking several months.
The best way to avoid waterfalling is to split your large project into smaller tests that you can effortlessly accomplish within one to two weeks. What’s more, smaller tests will give you helpful insights quickly so you can determine whether a large-scale project makes money sense.
Now that you have carried out your growth experiments, the next step is to find out whether or not scaling it up will lead to the growth you’re planning for. With these tests, you’ll identify the most effective growth strategies for your business.
The bottom line here is to make mistakes faster, learn from them, and try a different approach right away. Remember the cost of failing at the experimentation stage is much less than when you’re working on the actual project.
For the successful implementation of your growth strategy, you must cultivate and promote a high level of accountability in your workplace. Every employee must have a clear understanding of what their role entails and how that role contributes towards the achievement of a company’s long-term goals. And a great way to foster accountability in your workplace is to host regular meetings where every employee running a project shares with colleagues what they launched, the results they got, and steps they will take to realize better results going forward.
An extra tip: On top of fostering a high-level of accountability in your workplace, you should consider outsourcing recruitment in order to reduce cost and improve candidate quality. Most importantly, you will have more time to work on the growth of your company.
Your business isn’t going to achieve constant, sustainable growth overnight. It’ll take years of careful planning, thoughtful execution, and running different tests to identify your most effective strategies. Follow these 5 steps so you can create an effective growth strategy.
Lira Johnson is a business consultant with 6 years of experience based in London. She enjoys using what she has learned from 6 years of different challenges in businesses to help different starters achieve business growth and also help them establish clear goals that take their business from where it is to where the business owner wants it to be.
Connect with her by email.
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