A business without a strategy for growth is a business without any real direction. However, a business that lacks a solid strategy is likely in a similar boat. Unfortunately, strategy mistakes are plentiful, so it's critical your organization be able to identify them.
Market Trend Considerations
Any good growth strategy should include room for fluctuations brought about by market trend changes. Demand rarely stays stagnate -- it either goes up or down, and most commonly wavers back and forth. If your growth strategy is based on a five-year model, you need to account for each period when your demand might drop and when it will increase. Studying past trends and keeping a forecast on the competition can help you gather this data.
Data is only good when it's valid. Useless data is nothing more than false information. A common mistake some businesses make is to create a generic growth strategy that they use year after year. The main problem with this type of approach is the fact that the original data that was used to create the plan initially is outdated and, therefore, no longer valid for your business. Anytime a new strategy is implemented it should be based on fresh data.
It's natural to think that your organization is operating like a well-oiled machine. However, it's naïve to think that your organization doesn't have any weaknesses. When making your strategy, it's important to take an introspective view of any areas of weakness your company displays, such as slowed production rates or lack of manpower. In fact, it might be best to identify your weakness before you begin drafting the strategy to set realistic goals. Without identifying these areas, the plan will fail.
Lack of Competitive Advantage
Every strategy for growth should include steps that help the business gain a competitive advantage. In short, competitive advantage is the distance a company puts between themselves and their competitors, whether it's faster delivery or upgraded materials. With a competitive advantage, your company offers consumers something they can't get anywhere else, which makes your business more appealing. If your growth strategy doesn't include plans to gain this advantage, you might want to go back to the drawing board.
Being successful in the operation of your business does not always mean that you will have the same success when it comes to growing your business. However, there are professionals who can help. Whether it's reviewing your growth strategy or something else, a business advisory firm can help you keep your business on track.Share