Preparing a Strategic Growth Plan

Most economists predict that this year will begin a slow steady growth for the U.S. economy. The sectors that should lead the rebound are technology and essential services. Is your company ready to take advantage of an economic upturn? If not, it is time to prepare a strategic growth plan.

First, you will want to ask yourself several questions.
- What is my current financial position?
To take advantage of economic growth it is best to be in a strong cash position. Try to reduce debt, improve short term credit, and sock away some cash. You will need that cash to improve your growth position and increase market share when the time comes.
- Are my operational systems scalable?
During economic hard times, most companies tighten their belt to survive. They lay off employees, reduce services and cut back on marketing. This can create a "Where can we cut back?" mentality. Instead, start thinking in terms of "How can we create scalable systems?" Every aspect of your business should be fully understood and systematized. That way, when you begin to see growth, you don't have to create new systems, you simply upscale existing systems.
- How efficient is my marketing?
Most companies slash marketing budgets during hard times. I think that is because most marketing doesn't work. Now is the time to identify your ideal customer and find creative ways of reaching your ideal customer. Only put money in a marketing campaign that is paying for itself. If you cannot verify a positive cash flow from an advertising source, drop it. Research low cost guerrilla marketing techniques or even social media strategies.
- Is my management team lean, powerful and ready to grow?
Ultimately, management is going to determine whether or not you succeed. The last economic boom fostered some of the most poorly managed companies imaginable. Many of those are now out of business or on their way out. Focus on a small management team that is empowered, capable and ready to take action. That way, your company will be flexible and ready to quickly respond to changing economic conditions.
- Are there any locations left vacant by competitors who have gone out of business?
This recession has left many geographic holes where there is untapped market share waiting for you to move in. Develop an ideal customer demographic profile in terms of family size and income. A good commercial realtor can help you identify pockets where your ideal customer demographic can be found and any areas where your product or service is under-represented.
- Will I require additional space for expansion?
If your company is space restrictive, now is the time to begin thinking about new space. Great deals can be had now, while the economy is still sluggish. If you wait for the rebound to be in full swing, you may pay a premium for space.

It is a good idea to run these questions by your management team. Develop a written strategic growth plan. Have pre-set criteria that will trigger different aspects of the plan. That way you will be ready for steady sustainable growth. Believe it or not, rapid uncontrolled growth is as deadly to a company as a recession. Don't survive the recession, only to be killed by the rebound.

WFA Franchise Consultants