The Growth Planning Process
How small steps can lead to huge growth
Make confident, strategic decisions by following the Growth Planning process. It's a simpler approach to launching or growing a business.
The Growth Planning process
Follow these four steps to build a more profitable business.
Plan
Forecast
Review
Refine
Step One
Create a quick plan
Why?
To create a lightweight strategy that helps you figure out how to launch or grow your business.
How?
Size up the potential of your business or idea by answering tough questions like:
What problem are you solving? Who is your target market? What is your real competition?
Impact
Entrepreneurs with a plan are 129% more likely to push forward with their business beyond the initial startup phase and grow it, according to a study in the journal Small Business Economics.
Time Investment
It takes just 30 minutes to create your initial one-page plan and about 10 minutes each month to update it.
What you'll need
You can create your one-page plan using a Word or Google doc. This template gives you a rough guide to get started.
OR
The LivePlan Pitch helps you organize your ideas and analyze your business model on a single page.
Step Two
Build your forecast
Why?
To understand where your business is headed.
How?
By estimating! Don't worry about being perfect — just use either your historical data or any research you've done to forecast metrics like:
Unit sales and billable hours Operational expenses, like rent Financing payments
Impact
Businesses that continually track against their plan grow 30% faster than those that don't, according to a report in the Journal of Management Studies.
Time Investment
Depending on the complexity of your business, an initial forecast can take around an hour to create in LivePlan.
What you'll need
Spreadsheets are the most common forecasting tool, but you'll need to understand how to create formulas. This cash flow example will help you get started.
OR
LivePlan guides you through the entire forecasting process. It also gives you industry benchmark data to help you figure out if your estimates are realistic.
Step Three
Review the results
Why?
To uncover ways to build your business while holding yourself accountable to your goals.
How?
Compare your forecast against your actual sales and expenses each month to:
Determine if your strategy needs to change See if you're on track to meet your goals Uncover new growth opportunities
Impact
Documenting and reviewing your goals makes you 40% more likely to achieve them, according to a study by the Dominican University of California.
Time Investment
You should review your forecast at least once per month. Depending on the complexity of your business, expect to spend about 30-60 minutes looking at the numbers.
Step Four
Refine your strategy
Why?
To update your business strategy so you can maximize growth.
How?
Adjust your business plan based on your financial review in step 3. For example, you might decide to:
Tweak your business model Increase or decrease prices Change your product line to better meet demand
Impact
Businesses that successfully execute their strategies generally increase their revenue by 80%-120% in a three year period, according to the Palladium Group Whitepaper “Strategy Execution, A Competency that Creates Competitive Advantage.”
Time Investment
It really depends on the insights you gained in steps 1-3. You may not want to refine your strategy at all or you may need to rethink aspects of your business model and make some adjustments.
Start Growth Planning Today
Or download a free one-page business plan template.