Plan for growth II: Writing a business growth plan

What should ecommerce entrepreneurs include in their business growth plan? Here is the second part of how to write a business growth plan.

Click the following link for Plan for growth I: Considerations

Once your ecommerce business has started to take off, you need to stop relying on your start-up plan and focus on your business growth plan. This is a plan to help you grow to your next level.

Instead of relying on external factors pushing you towards success, you need to take control of the growth yourself.

Here are the five key sections to include in your plan:

1. Define your priorities

Write down a list of SMART long-term goals. SMART goals are Specific, Measurable, Achievable, Realistic and Timed. These goals will guide you as you work through your business plan for growth, and will help focus your efforts on doing what it takes to achieve them.

2. Set up a timeline

Your timeline should include goal milestones, which you will then measure yourself against to mark your progress. Include details in the timeline such as specific revenue levels, how many additional employees you hope to hire, how many countries you want to sell in, etc. Elaborate on how these will contribute to achieving your goals for growth.

3. Plan for cash

When your ecommerce business is growing, geographic or product expansion can result in negative cash flow. Don’t let this put you off – the cost of growth can be high. Remember that increasing revenues does not necessarily mean increasing profits…yet.

Your financial plan absolutely needs to include cash flow forecasts, which will be vital in determining how you will sustain your company’s growth.

4. Competitors

What new competitors have emerged since you set up your ecommerce website? How have competitors reacted to your business? Work out how you need to address your competitors – this could be through adjustments in price, delivery, customer service, product lines.

5. Evaluate your results

To track how your business growth plan is progressing, establish benchmarks against which you can measure yourself. Where do you want your business to be tomorrow?

6. Revise, revise, revise

Once you’ve got your initial growth plan, keep returning to it and updating it. Don’t just wait for big ideas to come to you – write down everything that goes through your head that may help the business.

While a growth plan is, to some extent, a snapshot in time of your business, don’t forget that things change. The marketplace is in constant evolution, and there are always new opportunities for your business to grow.