Does Small Business need Growth Plan

Strategic business planning can often be misinterpreted and seen as only for large businesses that require strategy for multiple projects or that have the time, money and resources to spend on week long planning events.

In reality, every business, no matter how big or small needs to have a business plan, and a strategic business plan can be put simply as the steps put in place to achieve the business outcome. Most businesses may not require a full length 40 page business plan, or a strategic plan for a specific product, but all need a plan of how they and their customers see their business, financials, and key tasks required to achieve their business success.

There are many reasons why a business needs a plan, these are reinforced by looking at the reasons small business fails. A recent article from a leading Australian bank identified the top reasons they see small business fail, apart from the obvious “Not having a business plan”, the other reasons can all be over come by implementing a growth plan.

Lets have a look at their reasons and how a growth plan can help avoid business failure.

1. Lack of research.

Many businesses do not conduct market research, planning, competitive analysis for the industry they are entering. While this sounds extensive, a simple plan can ensure these items have been assessed and validated.

2. Not having a business plan

Well this one is self-explanatory, and it is their 2nd most reason they see small business fail

3. Not having the business funding required

Simply by doing some financial and cash flow planning which is part of a growth plan, this highlights the position of the business.

4. Financial mismanagement

As well as initial or expansion funding, a key aspect of operations is Cash Flow. This is why the STAR growth Plan focuses (Link) on cash flow for financial targets and projections. Many profitable businesses still fail due to mismanaging cash flow. All businesses need to know how their flows in and out occur.

5. Poor Marketing

As with lack of research, businesses need planning, funding, and time spent on market research and there customers. Business needs to understand their target market and know where to find them, an integral part of a plan.

6. Customer needs compared to competitors

A key part of market analysis is understanding the problem/solution the product is solving for the customer and how this is different to its competitors. If the product does not solve a problem, or is no different, how will it be marketed?

7. Failing to adapt

Many businesses think that once they write their initial business plan and start operating, they don’t need it any longer. A business plan should be a functional reference tool used regularly, and more important revised and re-evaluated to assess the initial research and financials.

8. Grow too Quickly

Being successful should not be a problem right? It isn’t if the growth has been planned to ensure staffing, technology, and funding is all available. Again this is a key part of your agile business plan to ensure you have steps in place for the growth.

9. Failure to Hire and retain the right people Staff are one of businesses key resources. This forms part of your growth plan, who are your team, and what are they responsible for. By planning this, it highlights the importance of each person to the organisation.

10. Not asking for Support It is important to have good support, both professionally and personally. That is why when developing a plan, if it seems overwhelming, there is support in the form of business coaches to ensure it is efficient and effective for your business.

As you can see, the reasons BOQ highlighted as the reasons they see small business fail, can all be overcome by a simple business growth plan.

The plans do not need to take weeks to develop and can be done as quickly as 4 – 8 hours.

If you need assistance there is always many people to support you available. If you need direction our STAR growth plan is available or if you would like read more, another great book is ‘The one page business plan’ by Jim Horan .