Why Your Small Business Needs a Growth Strategy.

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 not focus on 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 implementing a growth strategy are 30% more likely to experience revenue growth than those without a plan. Plus, those with a clear growth strategy are 50% more likely to secure funding from investors.

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 try and keep it simple, I think of my business plan and strategy as if I am 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 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, providing a sense of direction and guiding your journey. Strategy helps you make informed decisions, allocate resources efficiently, seize opportunities that align with your long-term vision, and force accountability for moving the business forward. Your business plan and strategy are complementary tools to help you scale your business on your terms.

Now, all that might sound like corporate jargon, the sort of thing you'd hear in the boardroom of a big company 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 position in the market, differentiating your business from the competition and attracting 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 for attracting investors and securing funding for expansion. It demonstrates your commitment to growth and showcases a clear plan for achieving your goals and maximizing returns.

Internally, a strategy acts as a unifying force within your business. It provides a framework for decision-making, ensuring that everyone is working towards the same objectives. It fosters a sense of shared purpose, boosting morale and empowering your team to contribute their best.

A solid strategy is still essential, even if your business is just you. It will help you stay on track during stressful times and prevent 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 then tracking key performance indicators, you can identify areas for improvement, stay ahead of the competition and capitalise on any 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 whilst everything was ticking along, sales performance was not 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 things could have been done with a shake-up, and we had to look at things more strategically.

The first step was to thoroughly review the business, including all the typical SWOT, customer, competitor, pricing, vision, product, values, placement, etc. 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 identified opportunity and sell it to all the 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 could focus on high-impact activities that drove growth and built stronger customer relationships. Six months later, we had a step change in how the commercial team delivered. Increased revenue, market share, profit growth, brand awareness, loyalty, and happier teams. It wasn’t all easy, there were challenges and issues along the way but having a clear growth strategy not only helped achieve business goals but also provided a sense of direction and purpose across the business. 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 seeking to thrive in the modern world. By embracing strategic planning, you can transform your dreams into reality, build a more substantial business, and truly feel like you are 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 their upcoming 2025 Strategy for Growth Workshop, where we will expand on all things strategies and work with you to create a detailed plan for success in 2025 and beyond. For more details, email info@harrisonandhunter.

Have a Merry Christmas and a Happy New Year.

Steve