Small businesses have a key role to play in the economic growth of a State. However, in recent findings by SMEDAN and the National Bureau of Statistics, it was indicated that small businesses account for less than 50% of the total economic output. This figure indicates that small businesses have poor growth in some parts like Lagos, Abuja, Kano and Ibadan where we have most startups. Many factors are responsible for this such as the poor economy. Which is why it is necessary to have a growth plan alongside your business plan. A growth plan helps you factor in difficulties when you want to start a business.
It may sound basic when we talk about having a business growth plan because every business is expected to have a growth plan. But not many small business owners have a growth plan. They may have secret hopes for a good economy, bigger profits and revenue but only a few have an actual growth plan and even fewer people have the plans mapped out clearly.
First of all, when you talk about a growth plan, it needs to be attainable, sustainable and shared with team members and vendors. It’s trustworthy to note that if your team members don’t know the game plan or what they are supposed to be shooting for, they cannot help you in attaining growth.
So why is a growth plan necessary? The first reason why it is important is that it helps you as a business owner to define and focus on your business ideas and business strategies. You not only concentrate on financial matters, but also on management issues, human resource planning, technology and creating value for your customer. Looking at all this together helps you know how much more you will need to grow in the long run.
It is also important to note that a growth plan can serve as a communication tool that you can use to secure investment capital from financial institutions or lenders. It can also be used to convince people to work for your enterprise, to secure credit from suppliers, and to attract potential customers.
Having a business growth plan also helps you to identify potential pitfalls in your business. You can also share the plan with others who can give you their opinions and advice. Identify experts and professionals who are at a position to give you invaluable advice, and share your plan with them.
Creating a business plan involves a lot of thought. You need to consider what you want to do, and use that as a starting point. It doesn’t need to be complicated. At its core, your plan should identify where you are now, where you want your business to go, and how you will get there.