Frustrated by the lack of growth within your business? It can be understandably disappointing to put in daily effort only to realize that growth has stagnated and business has hit a seemingly never-ending plateau. Before you double down to getting to work an hour earlier, skipping lunch, and then working later, consider this: did you remember to actually plan for growth?
Surprisingly, this is a common mistake made by both beginning and seasoned entrepreneurs alike. When embarking on a new startup or business venture, it can be easy to stop the planning process at what should only be the first phase of growth.
In order to expand your business further, you need to actually fund growth. Not sure how to plan for the growth you need or if you are even in the best position to do so? We can take it step by step.
Even if your business is on a relatively even trajectory concerning sales, you should still have a cash flow projection that can be broken down by individual months. Whether sales are holding steady or dropping, both could be indicators that action is needed.
Profit and Loss Statements
If these statements show more loss than profit, chances are the company is less stable than you initially realized, and it is time to cut corners and cut unnecessary spending before looking at growth. However, if you’re bringing in a steady and healthy profit, it is most likely time to reinvest to help your business grow.
Revised Business Plan
If growth was not accommodated in the initial business plan, make some changes. Keep goals realistic and achievable based on the current sales projections, current and projected profits and expected trends or fluctuations in the market.
Your business was not built overnight, and in all likelihood, it certainly will not expand that way either. Healthy and solid business growth requires the same dedication and investment that was put into the startup in the first place. So, make sure all of your ducks are in a row before you move forward with your new business plan.