Why Your Small Business Needs a Growth Strategy.
Updated: 2 days ago
Running a small business is an adventure filled with endless possibilities, long days, sleepless nights, and the stress of doing it alone. It's easy to get lost in the day-to-day tasks that keep the business alive and miss the things that will help it thrive.
This is where a well-defined growth strategy becomes an asset:
We all have a business plan; it might be always by your side or tucked away in a drawer at home or the office, but we generally have one. What we often overlook is a strategy. A strategy is different. It’s something governments, armies, or multinational businesses do, not something for small businesses. Small businesses that implement a growth strategy are 30% more likely to grow revenue than those without a plan. Plus, those with a clear growth strategy are 50% more likely to secure investor funding.
So how do you start? What is a strategy, and how is it different to a business plan? What does a great one look like, and crucially, how do you create one? To keep it simple, I think of my business plan and strategy as asking my iPhone for directions. My destination is the objective. Where I want my business to be; the strategy is how I plan to get there (walking, driving or public transport). Finally, the tactics or activities I will do to get my business there are like the directions: take a left here and go straight on at the next roundabout.
A business plan is your map—it outlines your route and the milestones along the way. Your strategy, on the other hand, is your compass, giving you direction and guiding your journey. Strategy helps you make informed decisions, allocate resources efficiently, seize opportunities aligned with your long-term vision, and hold yourself accountable for moving the business forward. Your business plan and strategy complement each other and help you scale your business on your terms.
Now, all that might sound like corporate jargon, the kind of thing you'd hear in a big company boardroom during a fancy presentation. But the strategy isn't just for big businesses; it's crucial for small businesses, too. Without a plan, you risk reacting to market changes instead of proactively shaping your future. A well-crafted growth strategy helps you carve out a unique market position, differentiate your business from the competition, and attract loyal customers. It's about identifying your strengths, understanding your target audience, and crafting a compelling value proposition that resonates with them.
But it doesn't stop there. A growth strategy is essential to attract investors and secure funding for expansion. It shows your commitment to growth and outlines a clear plan to achieve your goals and maximise returns.
Internally, a strategy unifies your business. It provides a decision-making framework, ensuring everyone works toward the same objectives. It fosters a shared purpose, boosts morale, and empowers your team to do their best work.
A solid strategy is still essential, even if your business is just you. It helps you stay on track during stressful times and keeps you from getting bogged down in daily battles. It provides accountability and, I find, helps me focus more on the things that will make my business thrive.
Moreover, a growth strategy lets you measure your progress and make necessary adjustments. It's not a static document but a living, breathing part of your business that evolves with your company. By identifying and tracking key performance indicators, you can spot areas for improvement, stay ahead of the competition, and capitalise on emerging trends.
Let me share a personal success story to illustrate the power of a growth strategy.
Many years ago, I joined a new business, and while everything was ticking along, sales performance wasn't at the level the business needed or deserved. The brand looked great, and the product was excellent, so the commercial department could sit back and let the customers come to them up to a point. It was clear a shake-up could have done more, and we needed to look at things more strategically.
What Should a Small Business Growth Strategy Include?
A good growth strategy doesn't need to be complicated. It needs to help you make better commercial decisions and focus your time and resources where they'll have the greatest impact.
For most small businesses, that means getting four things right:
1. Market — Know where to compete. Identify your most profitable customers, understand what they value and recognise which opportunities are worth pursuing.
2. Message — Give customers a reason to choose you. Develop a clear proposition that explains the value you deliver and what makes your business different.
3. Motion — Build a repeatable approach to sales. Move beyond referrals and individual relationships by establishing a consistent way to attract, convert, and retain customers.
4. Management — Measure what matters. Set meaningful commercial objectives, track performance, and hold people (including you) accountable for delivering results.
The strongest small business growth strategies connect all four areas. They provide a practical framework for deciding what to prioritise, what to stop doing and where to invest for sustainable, profitable growth.
Ready to Turn Your Growth Strategy Into Action?
Understanding why your business needs a growth strategy is one thing. Building a practical plan that delivers results is another.
The Harrison & Hunter Complete Commercial Growth Toolkit helps small business owners identify their best customers, sharpen their proposition, build a more consistent sales approach and focus on the activities that drive profitable growth.
Four practical workbooks. One joined-up approach to commercial growth.
Not sure where to start?
Before investing in a growth plan, it helps to understand what's actually holding your business back.
Take our free 3-minute Commercial Growth Diagnostic to assess your business across four critical areas: Market, Message, Motion and Management.
You'll receive a personalised assessment highlighting where to focus your efforts first.
The first step was to thoroughly review the business, including a full SWOT, customer, competitor, pricing, vision, product, values, and placement analysis. This deep dive allowed me to pinpoint the best opportunity for strategic growth. Armed with this information, I created a detailed plan to capitalise on the opportunity and sell it to internal and external stakeholders.
The plan included specific actions to leverage the business's strengths, address weaknesses, and seize market opportunities. It also outlined clear goals and metrics to track progress. With a clear strategy, we focused on high-impact activities that drove growth and strengthened customer relationships. Six months later, the commercial team delivered a step change. We saw increased revenue, market share, profit growth, brand awareness, loyalty, and happier teams. It wasn’t easy; we faced challenges along the way, but a clear growth strategy not only helped us achieve business goals but also gave the business direction and purpose. It kept the team motivated during challenging times and allowed for informed decision-making aligned with the long-term vision.
In conclusion, a growth strategy is not just a luxury for large corporations. It's a vital tool for small businesses that want to thrive today. By embracing strategic planning, you can turn your dreams into reality, build a stronger business, and feel like you're truly moving forward. Remember, it's never too late to start. Take the first step today and unlock your business's full potential by joining Harrison & Hunter at our upcoming 2025 Strategy for Growth Workshop, where we'll cover everything strategy-related and work with you to create a detailed plan for success. For more details, email info@harrisonandhunter.
Steve
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