Three Differences Between Business Plans and Business Growth Plans

Posted by Admin | June 25th, 2014

All businesses are started with a general plan in mind, but that initial business plan is often written with broad strokes and bigger principles. To truly grow, a business growth plan is required. To understand the difference, here are three key points.

1. Concrete goals. A business growth plan is about measurable goals. This could include progress with the sales figures, debt reduction, inventory movement or customers. These goals should be based on market research and tailored to the specific needs of the business. Whatever the goals may be, they should be realistic, and they should be clearly outlined in order to give the business direction in the year ahead.

2. Practical changes. In order to grow, change is usually required. Some businesses may add new products, adopt new marketing techniques or open new locations. Other businesses may trim costs and eliminate redundancy. All the changes must be in alignment with the marketing research in order to push the business ahead toward the ultimate growth goal.

3. Limited timeframes. A business plan has no expiration date. A growth plan, however, is updated each year, and it is even helpful to gauge results on a quarterly basis in order to make sure everything is on track. Because growth plans set tangible goals, it is essential to evaluate progress on these goals. Then, growth plans should be developed again in order to set new or revised goals.

Both types of plans are important to promote healthy business growth for years to come.