Planning Strategically for Business Growth1:33pm - Oct 17, 2009

There are 100s of business books, articles, seminars and a large number of business gurus that all claim to have the secret of creating a multi million pound business. If only it were that easy – we would all be millionaires by now! At WS Accountancy we take a more hands on approach to helping a business to grow. We have noticed our most successful businesses have certain characteristics in common.




One of these characteristics being that they all have a strategic plan that they are working to. I hear you say ‘but we have a business plan’. Whilst a strategic and a business plan should complement each other they remain very different in essence.



A strategic plan determines the direction in which you would like your business to evolve and grow. In other words it is the big vision that your business is aspiring to. Conversely a business plan focuses on the day-to-day operations of the business.



Some of the items that a strategic plan should take into consideration are:



Exit strategy for the owner – It is doubtful that anyone would want to continue working beyond a certain age. It is therefore important to consider carefully the need to have an exit strategy plan in place.

Geographical location of the business – whilst it is great to work from home, or near to home it may not always be the best profitability strategy. Being accessible to an increased number of customers or accessible to future employees will go a long way towards increased sales.

Ownership structure – the right business structure not only facilitates growth but also brings additional tax advantage. One of the easiest ways to grow a business is through giving a percentage share of the business in return for a financial investment. It is unlikely that investors would be interested in investing a business that is run by a sole proprietor.

Do I need a strategic plan to grow my business?



Whilst a small business can generate a good turnover, it is unlikely to be able generate the same income as a larger business. Employing more staff or having a larger site necessitates a move away from hands on management to strategic management. This in turn has implications for quality and risk management to name a few areas.



As your business becomes larger and more complex, so strategy formulation will need to become more sophisticated, both to sustain growth and to help you muster the leadership and resources you need to keep your business developing.



To do this, you will also need to start collecting and analysing a wider range of business intelligence about your business and the external world in which it operates. Whilst it is good to have a plan, it is far more important to implement it – not just file it away.