We all want to grow our businesses. Sustainable business growth is a necessary function for any business. Even if we are content with the current level of sales, we will need to bring in new sales to replace regular customers we lost through no fault of our own. Knowing what to expect as we grow – both the ups and the downs – is important.
Planning for growth in a Strategic and Intentional way will ensure the most successful and smooth outcome for your business and those involved:
Sally is a successful professional who hung out her shingle eight years ago. She now has four people working for her, and she has built a good reputation in the community. Sally came to us two years ago, seeking to discover what she must do to grow her firm’s sales. Her ambition was to double the firm’s sales in two years and quadruple it in five years. She had no idea whether this was achievable and felt as if she was bringing us her “pipe dream.” We partnered with Sally to develop a Strategy for realizing her wildest ambitions.
We partnered with Sally to develop a strategy for realizing her wildest ambitions. Sally knew her business well and had a pretty good idea of the staffing additions needed to double sales. The key factors we looked at:
- How many additional professionals must be added? How would this increase costs?
- Additional time allocated to training, administration, and supporting staff? How much would this decrease sales?
- Is support staff sufficient to support increased staff? This would hold costs down.
- If not, how many new support staff need to be hired? How would this increase costs?
- How many new professionals could be hired without finding larger office space? How would this increase costs?
We began meeting monthly with Sally to plan and execute the Strategic Growth of her firm. We checked her progress and adjusted the plan as necessary. We reviewed the firm’s Financial Statements and discussed how our execution of the plan was being reflected in the Financials to determine if the numbers were responding as we had expected. Other meetings were arranged when Sally was facing key decisions throughout the execution of the plan.
One year into executing the Strategic Plan, Sally was somewhat distressed to learn that while sales were growing as planned, profit was about the same as the previous year. This happens when costs are growing at a higher rate than sales growth. Without having a plan in place, this cost growth can be alarming.
By following a Strategic Plan for Growth, we evaluate the cause, check in with the plan, and determine if the result was expected. This can be a real point of disillusionment for many business owners who do not fully understand how their actions toward growth translate into additional costs.
By partnering with us, we were able to show Sally exactly why this had happened. We reviewed the additional cost projections in the plan, and this addressed her concerns. In growth cycles, businesses will often experience cost growth equal to sales growth for some time while adding infrastructure to support the additional sales. These costs include additional staff, computer systems, equipment, and other components that make the additional sales possible.
In two years of executing a Strategic Plan for Growth, Sally has achieved the following results:
1. Sally’s firm has doubled sales.
2. Our meetings are once per quarter now, with quick phone consultations when necessary. Sally is much more comfortable managing the growth now.
3. We are discussing the opening of two additional offices in the region.
4. Sally’s biggest problem is how to shelter her income from the highest tax bracket.
If you have a similar business situation and are looking for a strategic partner for guidance, please contact us at 540-420-1004 or click here for a free consultation.
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