how to develop a business plan for market growth

5. Plan your course of action.

Next, outline how you’ll achieve your growth goals with a detailed growth strategy. Again, we suggest writing out a detailed growth strategy plan to gain the understanding and buy-in of your team.

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How to make a business plan

Table of Contents

How to make a good business plan: step-by-step guide.

A business plan is a strategic roadmap used to navigate the challenging journey of entrepreneurship. It's the foundation upon which you build a successful business.

A well-crafted business plan can help you define your vision, clarify your goals, and identify potential problems before they arise.

But where do you start? How do you create a business plan that sets you up for success?

This article will explore the step-by-step process of creating a comprehensive business plan.

What is a business plan?

A business plan is a formal document that outlines a business's objectives, strategies, and operational procedures. It typically includes the following information about a company:

Products or services

Target market

Competitors

Marketing and sales strategies

Financial plan

Management team

A business plan serves as a roadmap for a company's success and provides a blueprint for its growth and development. It helps entrepreneurs and business owners organize their ideas, evaluate the feasibility, and identify potential challenges and opportunities.

As well as serving as a guide for business owners, a business plan can attract investors and secure funding. It demonstrates the company's understanding of the market, its ability to generate revenue and profits, and its strategy for managing risks and achieving success.

Business plan vs. business model canvas

A business plan may seem similar to a business model canvas, but each document serves a different purpose.

A business model canvas is a high-level overview that helps entrepreneurs and business owners quickly test and iterate their ideas. It is often a one-page document that briefly outlines the following:

Key partnerships

Key activities

Key propositions

Customer relationships

Customer segments

Key resources

Cost structure

Revenue streams

On the other hand, a Business Plan Template provides a more in-depth analysis of a company's strategy and operations. It is typically a lengthy document and requires significant time and effort to develop.

A business model shouldn’t replace a business plan, and vice versa. Business owners should lay the foundations and visually capture the most important information with a Business Model Canvas Template . Because this is a fast and efficient way to communicate a business idea, a business model canvas is a good starting point before developing a more comprehensive business plan.

A business plan can aim to secure funding from investors or lenders, while a business model canvas communicates a business idea to potential customers or partners.

Why is a business plan important?

A business plan is crucial for any entrepreneur or business owner wanting to increase their chances of success.

Here are some of the many benefits of having a thorough business plan.

Helps to define the business goals and objectives

A business plan encourages you to think critically about your goals and objectives. Doing so lets you clearly understand what you want to achieve and how you plan to get there.

A well-defined set of goals, objectives, and key results also provides a sense of direction and purpose, which helps keep business owners focused and motivated.

Guides decision-making

A business plan requires you to consider different scenarios and potential problems that may arise in your business. This awareness allows you to devise strategies to deal with these issues and avoid pitfalls.

With a clear plan, entrepreneurs can make informed decisions aligning with their overall business goals and objectives. This helps reduce the risk of making costly mistakes and ensures they make decisions with long-term success in mind.

Attracts investors and secures funding

Investors and lenders often require a business plan before considering investing in your business. A document that outlines the company's goals, objectives, and financial forecasts can help instill confidence in potential investors and lenders.

A well-written business plan demonstrates that you have thoroughly thought through your business idea and have a solid plan for success.

Identifies potential challenges and risks

A business plan requires entrepreneurs to consider potential challenges and risks that could impact their business. For example:

Is there enough demand for my product or service?

Will I have enough capital to start my business?

Is the market oversaturated with too many competitors?

What will happen if my marketing strategy is ineffective?

By identifying these potential challenges, entrepreneurs can develop strategies to mitigate risks and overcome challenges. This can reduce the likelihood of costly mistakes and ensure the business is well-positioned to take on any challenges.

Provides a basis for measuring success

A business plan serves as a framework for measuring success by providing clear goals and financial projections . Entrepreneurs can regularly refer to the original business plan as a benchmark to measure progress. By comparing the current business position to initial forecasts, business owners can answer questions such as:

Are we where we want to be at this point?

Did we achieve our goals?

If not, why not, and what do we need to do?

After assessing whether the business is meeting its objectives or falling short, business owners can adjust their strategies as needed.

How to make a business plan step by step

The steps below will guide you through the process of creating a business plan and what key components you need to include.

1. Create an executive summary

Start with a brief overview of your entire plan. The executive summary should cover your business plan's main points and key takeaways.

Keep your executive summary concise and clear with the Executive Summary Template . The simple design helps readers understand the crux of your business plan without reading the entire document.

2. Write your company description

Provide a detailed explanation of your company. Include information on what your company does, the mission statement, and your vision for the future.

Provide additional background information on the history of your company, the founders, and any notable achievements or milestones.

3. Conduct a market analysis

Conduct an in-depth analysis of your industry, competitors, and target market. This is best done with a SWOT analysis to identify your strengths, weaknesses, opportunities, and threats. Next, identify your target market's needs, demographics, and behaviors.

Use the Competitive Analysis Template to brainstorm answers to simple questions like:

What does the current market look like?

Who are your competitors?

What are they offering?

What will give you a competitive advantage?

Who is your target market?

What are they looking for and why?

How will your product or service satisfy a need?

These questions should give you valuable insights into the current market and where your business stands.

4. Describe your products and services

Provide detailed information about your products and services. This includes pricing information, product features, and any unique selling points.

Use the Product/Market Fit Template to explain how your products meet the needs of your target market. Describe what sets them apart from the competition.

5. Design a marketing and sales strategy

Outline how you plan to promote and sell your products. Your marketing strategy and sales strategy should include information about your:

Pricing strategy

Advertising and promotional tactics

Sales channels

The Go to Market Strategy Template is a great way to visually map how you plan to launch your product or service in a new or existing market.

6. Determine budget and financial projections

Document detailed information on your business’ finances. Describe the current financial position of the company and how you expect the finances to play out.

Some details to include in this section are:

Startup costs

Revenue projections

Profit and loss statement

Funding you have received or plan to receive

Strategy for raising funds

7. Set the organization and management structure

Define how your company is structured and who will be responsible for each aspect of the business. Use the Business Organizational Chart Template to visually map the company’s teams, roles, and hierarchy.

As well as the organization and management structure, discuss the legal structure of your business. Clarify whether your business is a corporation, partnership, sole proprietorship, or LLC.

8. Make an action plan

At this point in your business plan, you’ve described what you’re aiming for. But how are you going to get there? The Action Plan Template describes the following steps to move your business plan forward. Outline the next steps you plan to take to bring your business plan to fruition.

Types of business plans

Several types of business plans cater to different purposes and stages of a company's lifecycle. Here are some of the most common types of business plans.

Startup business plan

A startup business plan is typically an entrepreneur's first business plan. This document helps entrepreneurs articulate their business idea when starting a new business.

Not sure how to make a business plan for a startup? It’s pretty similar to a regular business plan, except the primary purpose of a startup business plan is to convince investors to provide funding for the business. A startup business plan also outlines the potential target market, product/service offering, marketing plan, and financial projections.

Strategic business plan

A strategic business plan is a long-term plan that outlines a company's overall strategy, objectives, and tactics. This type of strategic plan focuses on the big picture and helps business owners set goals and priorities and measure progress.

The primary purpose of a strategic business plan is to provide direction and guidance to the company's management team and stakeholders. The plan typically covers a period of three to five years.

Operational business plan

An operational business plan is a detailed document that outlines the day-to-day operations of a business. It focuses on the specific activities and processes required to run the business, such as:

Organizational structure

Staffing plan

Production plan

Quality control

Inventory management

Supply chain

The primary purpose of an operational business plan is to ensure that the business runs efficiently and effectively. It helps business owners manage their resources, track their performance, and identify areas for improvement.

Growth-business plan

A growth-business plan is a strategic plan that outlines how a company plans to expand its business. It helps business owners identify new market opportunities and increase revenue and profitability. The primary purpose of a growth-business plan is to provide a roadmap for the company's expansion and growth.

The 3 Horizons of Growth Template is a great tool to identify new areas of growth. This framework categorizes growth opportunities into three categories: Horizon 1 (core business), Horizon 2 (emerging business), and Horizon 3 (potential business).

One-page business plan

A one-page business plan is a condensed version of a full business plan that focuses on the most critical aspects of a business. It’s a great tool for entrepreneurs who want to quickly communicate their business idea to potential investors, partners, or employees.

A one-page business plan typically includes sections such as business concept, value proposition, revenue streams, and cost structure.

Best practices for how to make a good business plan

Here are some additional tips for creating a business plan:

Use a template

A template can help you organize your thoughts and effectively communicate your business ideas and strategies. Starting with a template can also save you time and effort when formatting your plan.

Miro’s extensive library of customizable templates includes all the necessary sections for a comprehensive business plan. With our templates, you can confidently present your business plans to stakeholders and investors.

Be practical

Avoid overestimating revenue projections or underestimating expenses. Your business plan should be grounded in practical realities like your budget, resources, and capabilities.

Be specific

Provide as much detail as possible in your business plan. A specific plan is easier to execute because it provides clear guidance on what needs to be done and how. Without specific details, your plan may be too broad or vague, making it difficult to know where to start or how to measure success.

Be thorough with your research

Conduct thorough research to fully understand the market, your competitors, and your target audience . By conducting thorough research, you can identify potential risks and challenges your business may face and develop strategies to mitigate them.

Get input from others

It can be easy to become overly focused on your vision and ideas, leading to tunnel vision and a lack of objectivity. By seeking input from others, you can identify potential opportunities you may have overlooked.

Review and revise regularly

A business plan is a living document. You should update it regularly to reflect market, industry, and business changes. Set aside time for regular reviews and revisions to ensure your plan remains relevant and effective.

Create a winning business plan to chart your path to success

Starting or growing a business can be challenging, but it doesn't have to be. Whether you're a seasoned entrepreneur or just starting, a well-written business plan can make or break your business’ success.

The purpose of a business plan is more than just to secure funding and attract investors. It also serves as a roadmap for achieving your business goals and realizing your vision. With the right mindset, tools, and strategies, you can develop a visually appealing, persuasive business plan.

Ready to make an effective business plan that works for you? Check out our library of ready-made strategy and planning templates and chart your path to success.

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Prepare a business plan for growth

Planning is key to any business throughout its existence. Every successful business regularly reviews its business plan to ensure it continues to meet its needs. It's sensible to review current performance on a regular basis and identify the most likely strategies for growth.

Once you've reviewed your progress and identified the key growth areas that you want to target, it's time to revisit your business plan and make it a road map to the next stages for your business.

This guide will show how you can turn your business plan from a static document into a dynamic template that will help your business both survive and thrive.

The importance of ongoing business planning

What your business plan should include, drawing up a more sophisticated business plan, plan and allocate resources effectively, use targets to implement your business plan, when and how to review your business plan.

Most potential investors will want to see a business plan before they consider funding your business. Although many businesses are tempted to use their business plans solely for this purpose, a good plan should set the course of a business over its lifespan.

A business plan plays a key role in allocating resources throughout a business. It is a tool that can help you attract new funds or that you can use as a strategy document. A good business plan reveals how you would use the bank loan or investment you are asking for.

Ongoing business planning means that you can monitor whether you are achieving your business objectives . A business plan can be used as a tool to identify where you are now and in which direction you wish your business to grow. A business plan will also ensure that you meet certain key targets and manage business priorities.

You can maximise your chances of success by adopting a continuous and regular business planning cycle that keeps the plan up-to-date. This should include regular business planning meetings which involve key people from the business.

To find out more, see our guides on how to review your business performance and how to assess your options for growth .

If you regularly assess your performance against the plans and targets you have set, you are more likely to meet your objectives. It can also signpost where and why you're going astray. Many businesses choose to assess progress every three or six months.

The assessment will also help you in discussions with banks, investors and even potential buyers of your business. Regular review is a good vehicle for showing direction and commitment to employees, customers and suppliers.

Defining your business' purpose in your business plan keeps you focused, inspires your employees and attracts customers.

Your business plan should include a summary of what your business does, how it has developed and where you want it to go. In particular, it should cover your strategy for improving your existing sales and processes to achieve the growth you desire.

You also need to make it clear what timeframe the business plan covers - this will typically be for the next 12 to 24 months.

The plan needs to include:

• The marketing aims and objectives , for example how many new customers you want to gain and the anticipated size of your customer base at the end of the period. To find out about marketing strategy, see our guide on how to create your marketing strategy .
• Operational information such as where your business is based, who your suppliers are and the premises and equipment needed.
• Financial information , including profit and loss forecasts, cash flow forecasts, sales forecasts and audited accounts.
• A summary of the business objectives, including targets and dates.
• If yours is an owner-managed business, you may wish to include an exit plan . This includes planning the timing of your departure and the circumstances, e.g. family succession, sale of the business, floating your business or closing it down.

If you intend to present your business plan to an external audience such as investors or banks, you will also need to include:

• your aims and objectives for each area of the business
• details of the history of the business, including financial records from the last three years - if this isn't possible, provide details about trading to date
• the skills and qualifications of the management involved in your business
• information about the product or service, its distinctiveness and where it fits into the marketplace

If your business has grown to encompass a series of departments or divisions, each with its own targets and objectives, you may need to draw up a more sophisticated business plan.

The individual business plans of the departments and separate business units will need to be integrated into a single strategy document for the entire organisation.

This can be a complex exercise but it's vital if each business unit is to tread a consistent path and not conflict with the overall strategy.

This is not just an issue for large enterprises - many small firms consist of separate business units pursuing different strategies.

To draw up a business plan that marries all the separate units of an organisation requires a degree of co-ordination. It may seem obvious, but make sure all departments are using the same planning template.

Objectives for individual departments

It's important for each department to feel that they are a stakeholder in the plan. Typically, each department head will draft the unit's business plan and then agree on its final form in conjunction with other departments.

Each unit's budgets and priorities must be set so that they fit in with those of the entire organisation. Generally, individual unit plans are required to be more specific and precisely defined than the overall business plan. It's important that the objectives set for business units are realistic and deliverable. However complex it turns out to be, the individual business unit plan needs to be easily understood by the people whose job it is to make it work. They also need to be clear on how their plan fits in with that of the wider organisation.

The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met.

Once you've reviewed your progress to date and identified your strategy for growth, your existing business plan may look dated and may no longer reflect your business' position and future direction.

When you are reviewing your business plan to cover the next stages, it's important to be clear on how you will allocate your resources to make your strategy work.

For example, if a particular business unit or department has been given a target, the business plan should allocate sufficient resources to achieve it. These resources may already be available within the business or may be generated by future activity.

In practice this could mean recruiting more office staff, spending more on marketing or buying more supplies or equipment. You may want to provide funds through current cash flow, generating more profit or seeking external funding. In general, it is always better to fund future growth through revenue generation.

However, you should do some precise budgeting to decide on the right level of resourcing for a particular unit or department. It's important that resources are prioritised, so that areas of a business which are key to delivering the overall aims and objectives are adequately funded. If funding isn't available this may involve making cutbacks in other areas.

A successful business plan should incorporate a set of targets and objectives.

While the overall plan may set strategic goals, these are unlikely to be achieved unless you use SMART objectives or targets, i.e. S pecific, M easurable, A chievable, R ealistic and T imely.

Targets help everyone within a business understand what they need to achieve and when they need to achieve it.

You can monitor the performance of employees, teams or a new product or service by using appropriate performance indicators . These can be:

• sales or profit figures over a given period
• milestones in new product development
• productivity benchmarks for individual team members
• market-share statistics

Targets make it clearer for individual employees to see where they fit within an organisation and what they need to do to help the business meet its objectives. Setting clear objectives and targets and closely monitoring their delivery can make the development of your business more effective. Targets and objectives should also form a key part of employee appraisals, as a means of objectively addressing individuals' progress.

Once you've drawn up your new business plan and put it into practice, it needs to be continually monitored to make sure the objectives are being achieved. This review process should follow an assessment of your progress to date and an analysis of the most promising ways to develop your business. To find out more about these stages see our guides on how to review your business performance and how to assess your options for growth .

This process is called the business plan cycle . In some businesses, the cycle may be a continuous process with the plan being regularly updated and monitored. For most businesses, an annual plan - broken down into four quarterly operating plans - is sufficient. However, if a business is heavily sales driven, it can make more sense to have a monthly operating plan, supplemented where necessary with weekly targets and reviews.

It's important to keep in mind that major events in your business' target marketplace (e.g. competitor consolidation, acquisition of a major customer) or in the broader environment (e.g. new legislation) should trigger a review of your strategic objectives.

Regardless of whether or not there are fixed time intervals in your business plan, it must be part of a rolling process, with regular assessment of performance against the plan and agreement of a revised forecast if necessary.

Original document, Prepare a business plan for growth , © Crown copyright 2009 Source: Business Link UK (now GOV.UK/Business ) Adapted for Québec by Info entrepreneurs

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How to Write a Market Analysis for a Business Plan

Dan Marticio is a freelance writer. He’s written on a broad range of topics from stocks and net worth to productivity hacks. His work has appeared on Fundera and LendingTree.

Robert Beaupre leads the SMB team at NerdWallet. He has covered financial topics as an editor for more than a decade. Before joining NerdWallet, he served as senior editorial manager of QuinStreet's insurance sites and managing editor of Insure.com. In addition, he served as an online media manager for the University of Nevada, Reno.

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

A lot of preparation goes into starting a business before you can open your doors to the public or launch your online store. One of your first steps should be to write a business plan . A business plan will serve as your roadmap when building your business.

Within your business plan, there’s an important section you should pay careful attention to: your market analysis. Your market analysis helps you understand your target market and how you can thrive within it.

Simply put, your market analysis shows that you’ve done your research. It also contributes to your marketing strategy by defining your target customer and researching their buying habits. Overall, a market analysis will yield invaluable data if you have limited knowledge about your market, the market has fierce competition, and if you require a business loan. In this guide, we'll explore how to conduct your own market analysis.

How to conduct a market analysis: A step-by-step guide

In your market analysis, you can expect to cover the following:

Industry outlook

Target market

Market value

Competition

Barriers to entry

Let’s dive into an in-depth look into each section:

Step 1: Define your objective

Before you begin your market analysis, it’s important to define your objective for writing a market analysis. Are you writing it for internal purposes or for external purposes?

If you were doing a market analysis for internal purposes, you might be brainstorming new products to launch or adjusting your marketing tactics. An example of an external purpose might be that you need a market analysis to get approved for a business loan .

The comprehensiveness of your market analysis will depend on your objective. If you’re preparing for a new product launch, you might focus more heavily on researching the competition. A market analysis for a loan approval would require heavy data and research into market size and growth, share potential, and pricing.

Step 2: Provide an industry outlook

An industry outlook is a general direction of where your industry is heading. Lenders want to know whether you’re targeting a growing industry or declining industry. For example, if you’re looking to sell VCRs in 2020, it’s unlikely that your business will succeed.

Starting your market analysis with an industry outlook offers a preliminary view of the market and what to expect in your market analysis. When writing this section, you'll want to include:

Market size

Are you chasing big markets or are you targeting very niche markets? If you’re targeting a niche market, are there enough customers to support your business and buy your product?

Product life cycle

If you develop a product, what will its life cycle look like? Lenders want an overview of how your product will come into fruition after it’s developed and launched. In this section, you can discuss your product’s:

Research and development

Projected growth

How do you see your company performing over time? Calculating your year-over-year growth will help you and lenders see how your business has grown thus far. Calculating your projected growth shows how your business will fare in future projected market conditions.

Step 3: Determine your target market

This section of your market analysis is dedicated to your potential customer. Who is your ideal target customer? How can you cater your product to serve them specifically?

Don’t make the mistake of wanting to sell your product to everybody. Your target customer should be specific. For example, if you’re selling mittens, you wouldn’t want to market to warmer climates like Hawaii. You should target customers who live in colder regions. The more nuanced your target market is, the more information you’ll have to inform your business and marketing strategy.

With that in mind, your target market section should include the following points:

Demographics

This is where you leave nothing to mystery about your ideal customer. You want to know every aspect of your customer so you can best serve them. Dedicate time to researching the following demographics:

Income level

Create a customer persona

Creating a customer persona can help you better understand your customer. It can be easier to market to a person than data on paper. You can give this persona a name, background, and job. Mold this persona into your target customer.

What are your customer’s pain points? How do these pain points influence how they buy products? What matters most to them? Why do they choose one brand over another?

Research and supporting material

Information without data are just claims. To add credibility to your market analysis, you need to include data. Some methods for collecting data include:

Target group surveys

Focus groups

Reading reviews

Feedback surveys

You can also consult resources online. For example, the U.S. Census Bureau can help you find demographics in calculating your market share. The U.S. Department of Commerce and the U.S. Small Business Administration also offer general data that can help you research your target industry.

Step 4: Calculate market value

You can use either top-down analysis or bottom-up analysis to calculate an estimate of your market value.

A top-down analysis tends to be the easier option of the two. It requires for you to calculate the entire market and then estimate how much of a share you expect your business to get. For example, let’s assume your target market consists of 100,000 people. If you’re optimistic and manage to get 1% of that market, you can expect to make 1,000 sales.

A bottom-up analysis is more data-driven and requires more research. You calculate the individual factors of your business and then estimate how high you can scale them to arrive at a projected market share. Some factors to consider when doing a bottom-up analysis include:

Where products are sold

Who your competition is

The price per unit

How many consumers you expect to reach

The average amount a customer would buy over time

While a bottom-up analysis requires more data than a top-down analysis, you can usually arrive at a more accurate calculation.

Step 5: Get to know your competition

Before you start a business, you need to research the level of competition within your market. Are there certain companies getting the lion’s share of the market? How can you position yourself to stand out from the competition?

There are two types of competitors that you should be aware of: direct competitors and indirect competitors.

Direct competitors are other businesses who sell the same product as you. If you and the company across town both sell apples, you are direct competitors.

An indirect competitor sells a different but similar product to yours. If that company across town sells oranges instead, they are an indirect competitor. Apples and oranges are different but they still target a similar market: people who eat fruits.

Also, here are some questions you want to answer when writing this section of your market analysis:

What are your competitor’s strengths?

What are your competitor’s weaknesses?

How can you cover your competitor’s weaknesses in your own business?

How can you solve the same problems better or differently than your competitors?

How can you leverage technology to better serve your customers?

How big of a threat are your competitors if you open your business?

Step 6: Identify your barriers

Writing a market analysis can help you identify some glaring barriers to starting your business. Researching these barriers will help you avoid any costly legal or business mistakes down the line. Some entry barriers to address in your marketing analysis include:

Technology: How rapid is technology advancing and can it render your product obsolete within the next five years?

Branding: You need to establish your brand identity to stand out in a saturated market.

Cost of entry: Startup costs, like renting a space and hiring employees, are expensive. Also, specialty equipment often comes with hefty price tags. (Consider researching equipment financing to help finance these purchases.)

Location: You need to secure a prime location if you’re opening a physical store.

Competition: A market with fierce competition can be a steep uphill battle (like attempting to go toe-to-toe with Apple or Amazon).

Step 7: Know the regulations

When starting a business, it’s your responsibility to research governmental and state business regulations within your market. Some regulations to keep in mind include (but aren’t limited to):

Employment and labor laws

Advertising

Environmental regulations

If you’re a newer entrepreneur and this is your first business, this part can be daunting so you might want to consult with a business attorney. A legal professional will help you identify the legal requirements specific to your business. You can also check online legal help sites like LegalZoom or Rocket Lawyer.

Tips when writing your market analysis

We wouldn’t be surprised if you feel overwhelmed by the sheer volume of information needed in a market analysis. Keep in mind, though, this research is key to launching a successful business. You don’t want to cut corners, but here are a few tips to help you out when writing your market analysis:

Use visual aids

Nobody likes 30 pages of nothing but text. Using visual aids can break up those text blocks, making your market analysis more visually appealing. When discussing statistics and metrics, charts and graphs will help you better communicate your data.

Include a summary

If you’ve ever read an article from an academic journal, you’ll notice that writers include an abstract that offers the reader a preview.

Use this same tactic when writing your market analysis. It will prime the reader of your market highlights before they dive into the hard data.

Get to the point

It’s better to keep your market analysis concise than to stuff it with fluff and repetition. You’ll want to present your data, analyze it, and then tie it back into how your business can thrive within your target market.

Revisit your market analysis regularly

Markets are always changing and it's important that your business changes with your target market. Revisiting your market analysis ensures that your business operations align with changing market conditions. The best businesses are the ones that can adapt.

Why should you write a market analysis?

Your market analysis helps you look at factors within your market to determine if it’s a good fit for your business model. A market analysis will help you:

1. Learn how to analyze the market need

Markets are always shifting and it’s a good idea to identify current and projected market conditions. These trends will help you understand the size of your market and whether there are paying customers waiting for you. Doing a market analysis helps you confirm that your target market is a lucrative market.

2. Learn about your customers

The best way to serve your customer is to understand them. A market analysis will examine your customer’s buying habits, pain points, and desires. This information will aid you in developing a business that addresses those points.

3. Get approved for a business loan

Starting a business, especially if it’s your first one, requires startup funding. A good first step is to apply for a business loan with your bank or other financial institution.

A thorough market analysis shows that you’re professional, prepared, and worth the investment from lenders. This preparation inspires confidence within the lender that you can build a business and repay the loan.

4. Beat the competition

Your research will offer valuable insight and certain advantages that the competition might not have. For example, thoroughly understanding your customer’s pain points and desires will help you develop a superior product or service than your competitors. If your business is already up and running, an updated market analysis can upgrade your marketing strategy or help you launch a new product.

Final thoughts

There is a saying that the first step to cutting down a tree is to sharpen an axe. In other words, preparation is the key to success. In business, preparation increases the chances that your business will succeed, even in a competitive market.

The market analysis section of your business plan separates the entrepreneurs who have done their homework from those who haven’t. Now that you’ve learned how to write a market analysis, it’s time for you to sharpen your axe and grow a successful business. And keep in mind, if you need help crafting your business plan, you can always turn to business plan software or a free template to help you stay organized.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

On a similar note...

Write a business development plan

Now that you’re in the growth stage of your business, set things in motion with a business development plan.

A business development plan sets goals for growth and explains how you will achieve them. It can have a short-term or long-term focus. Review and revise your plan as often as you can. And keep building on it as your business evolves.

How to write a business development plan

Your business development plan is your roadmap to growth, so make it clear, specific and realistic.

What to include in a business development plan

• Opportunities for growth: Identify where growth will come from – whether it’s in creating new products, adding more services, breaking into new markets, or a combination of these.
• Funding plan: Determine how you’ll fund your business growth. How much capital do you already have? How much more do you need and how will you get it? Check out our guide on financing your business.
• Financial goals: Work out what revenue, costs and profits you’ll have if things stay the same. Use those numbers as a basis for setting new, more ambitious financial goals.
• Operational needs: Identify what things about your business will need to change in order to achieve growth. Will you need extra people, more equipment, or new suppliers?
• Sales and marketing activities: Figure out what sales and marketing efforts will effectively promote growth and how these efforts will change as the business gets bigger and better. Make sure your sales and marketing plan is sturdy enough to support your growing business.
• Team needs: You may need people to take on some of the tasks you’ve been doing. Think about what parts of running the business you enjoy most – and you’re good at – and what parts you might want to delegate to others. And give some thought to the culture you want to develop in your business as it grows. Check out our guide on hiring employees.

A sample business development plan

Avoid these common business development mistakes.

• Thinking short-term instead of long-term
• Underestimating how much money it will take to grow
• Not budgeting enough money to cover the costs of growth
• Focusing on too many growth opportunities: think quality, not quantity

Micro-planning can keep you focused

You may want to create some micro-plans for specific growth projects so their details don’t get overlooked. And you can build in some KPIs to measure your progress and successes. As your business grows, take note of your progress and make periodic adjustments to your business development plan to make sure it’s still relevant.

Support is out there

Remember you’re not the first to go through this. Seek out mentors, advisors or other business owners who can help you with your planning. Your accountant or bookkeeper may also be able to help or point you in the direction of the right people.

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

Growing your business

Are you ready to drop the hammer and take your business to the next level? Let’s look at how to grow.

Before you leap into growth, reflect on where you’ve come from. Find out the stage of business growth you’re at.

Understanding your business performance will help you grow. Check out common examples of small business KPIs.

Increasing sales revenue is one obvious way to help grow your business. But how do you sell more?

You can grow your business by selling more things to more people, or fewer things to fewer people. Let’s look at how.

You’re all set to grow your business. But there’s so much to keep track of. Xero’s got resources and solutions to help.

Download the guide to growing your business

Learn how to grow a business, from planning to expansion. Fill out the form to receive this guide as a PDF.

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Start using Xero for free

Access Xero features for 30 days, then decide which plan best suits your business.

• Try Xero for free
• See all features

Growth Plan: What is it & How to Create One? (Steps Included)

“I want to increase sales this quarter. I want to expand my business this year. I want to hire new employees this month. I want to improve the quality of my product by the end of this year. I want to hit a new market target.”

If you run a business, you’ve probably said these things or something similar a thousand times. After all, every business has a list of goals they want to achieve by a particular time.

In a perfect world, we’d set goals, and we’d reach them without much effort. Unfortunately, in the real world, there are a lot of things we need to do after setting goals, like creating a growth plan.

A growth plan isn’t just about the goals and future of your business, but also the strategies you would implement to make sure that your vision comes to life.

Considering the fact that 50% of businesses fail during their first five years and 66% fail during their first ten, creating a solid growth plan is quintessential.

So, in this blog post, we’re going to tell you all about growth plans and how you can create one that works like a charm. So buckle up because you’re in for a ride.

Growth Plan: What Exactly is it? (Definition)

A growth plan is a strategic plan about how every aspect of your business will walk towards attaining the business goals. With a growth plan in hand, you’ll know exactly what to do, how, and when to do it.

Even though a growth plan sounds like the marketing tactics you’d implement to grow your business, it’s a lot more than that. It encompasses an overview of everything you’d be doing to grow your business.

Let’s understand the concept of a growth plan better with an example.

Suppose you’re running a gaming laptop business. Your goal is to increase your sales by 60% over the next five years. To achieve this goal, you might need to carry out a plethora of tasks like:

• Hiring new, more experienced sales reps.
• Upgrading the product after conducting market research.
• Finding investors who’d be willing to invest in the new version of the laptop.
• Hiring a social media marketer to handle your business’s social media accounts.
• Creating a TV advertisement that hits the right spot.

Now, you’d be writing all these things in your growth plan, along with other details like timeline, budget, name of the people responsible for carrying out a particular task, and more.

Want to know some other reasons why you need to create a growth plan? Let’s find out!

Read more:  Growth Marketing: What is it & How to Carry it out for your Business?

3 Reasons Why You Should Create a Growth Plan

1. keeps you focused.

When you’re running a business, you usually try to flap your wings around in different places.

But, when some places don’t give you the results you expected, you get frustrated and realize that you wasted so much of your time and effort that you could’ve invested in other areas.

Well, a growth plan can help you avoid that frustration. With a growth plan, you’d know exactly what areas you should be focusing on and what areas you don’t need to pay attention to.

The result? You won’t be wasting any time and effort on places you won’t get any return from.

Read more:  Business Development Plan: What Is It And How To Create A Perfect One?

2. Helps You When Things Go Sideways

We don’t want to scare you, but the landscape of the market is changing at a rapid pace.

That means things in your business can go haywire at any time. But, you really don’t need to worry about that if you have got a strong growth plan in place.

Like we said above, in a growth plan, you write all the strategies that’d lead you to growth. When things go wrong, you can just pick one of the strategies, modify them according to the current scenario, and you’re good to go!

3. Gives You a Direction

Your business isn’t a road trip. You can’t go rogue and see where the road takes you. You need a roadmap, a direction…and that’s exactly what a growth plan gives you.

A growth plan shows you the way towards achieving your goals. It tells you the route you need to take to reach your goals . Without it, you might end up taking the wrong turn and reach a dead end.

To put it simply, when you have a growth plan with you, you’ll know all about what you need to do to make your business successful.

Considering the importance of a growth plan, creating it is not something you can rush through. There are some steps that you need to follow, and we’re going to tell you all about them.

How to Create a Growth Plan In 5 Easy-Peasy Steps?

Set 1. set goals.

Every plan starts with setting business goals , and a growth plan is no different.

After all, you can’t just say “I want this” and expect something to happen automatically. You need to define what exactly you want to achieve, i.e., you need to set your goals.

Also, always make sure that your goals are not vague but realistic and measurable. For instance, “ Increasing sales ” isn’t a solid goal. “ Increasing sales by 20% over the next 6 months ” is the kind of goal you can measure.

Step 2. Conduct Market Research

You might think that once you’ve decided on your goals, you can just go ahead and start creating strategies. Unfortunately, it’s not that easy.

There’s another important step that you need to follow: carrying out market research. Creating strategies without considering the market is not going to help you achieve your goals.

Examine your target audience, the condition of the market, and your competitors. Evaluate what your audience is looking for, how saturated the market is, and what your competitors are doing.

Step 3. Evaluate Your KPIs

Once you’ve done the market research, it’s time to get back home, aka your business, and do some digging. You need to find out what’s working for your business and what’s not.

The best way to figure that out is by evaluating your KPIs. For those who don’t know, KPIs stand for Key Performance Indicators. They are the metrics that are “key” in determining your business’s success.

By assessing your KPIs, you’ll find out the key areas that are giving you the most fruitful results. You can then target these areas while you’re brainstorming strategies for growth. This brings us to the next step:

Read more: KPI Report: What it is & How to Create a Perfect One?

Step 4. Create Strategies

Okay, so now you know everything about the market and your company, so you’re all set to create strategies that you’d be implementing to achieve your goals.

From hiring new sales reps to upgrading your existing product – your strategies can be anything, as long as they help you achieve your goals.

We don’t need to say this, but make sure that your strategies align with your present and future budget. You don’t want to overspend right now and then be short of money when you execute a future strategy.

Step 5. Execute Your Plan

Brace yourselves because it’s time to get the ball rolling and execute the plan. Start implementing all the strategies according to the timeline you’ve set.

However, there’s something that you need to remember: Your plan isn’t a static piece of document. You need to keep modifying and updating it as you go.

Just follow the old saying, ‘ grow through what you go through .’ A strategy isn’t giving the results you expected? Change it. A strategy is working too well? Increase its timeline. A strategy isn’t in trend anymore? Slash it.

Yay! You’ve now learned how to create a solid growth plan.

Now, all that’s left for you to learn is how to create it the right way . See, your growth plan is a VERY essential document. You can’t just type all the strategies out and think that your growth plan is ready.

Your plan needs to have a proper structure and layout. It needs to be easy on the eyes and easy to comprehend. Most of all, it needs to be written after getting inputs from all the departments in your business.

It seems like a tough and long process, doesn’t it? It’s not, because Bit.ai is a platform where you can do all this and more. Want to know more about Bit.ai? Read on!

Read more:   Growth Hacking: What is it & 21 Tools that can Help!

Bit.ai – The Perfect Tool for Creating Growth Plans & Other Business Documents

Yes, that’s the essence of Bit.ai – a document collaboration platform where you can create, organize, share and manage all company documents and other content.

You do not have to worry about formatting or designing your growth plan at all – just pick a template, and put all your strategies in it. Did you know that Bit gives you the option to choose from over 70 templates ?!

This nifty platform lets you and your team collaborate in real-time by co-editing, making inline comments, chatting via document chat, @mentions, and much more.

Want to make your growth plan more robust and comprehensive? Add rich media into it! Bit lets you add excel sheets, social content, cloud files, charts, surveys/polls, code, presentations, and much more to your documents.

One feature that makes Bit stand out is ‘smart workspaces’. On Bit, you can create infinite workspaces around projects and teams. This will help you in keeping all your documents related to your growth plan organized!

Bit.ai makes creating documents as easy as ABC, and there’s no reason why you shouldn’t give it a try.

Wrapping Up

There are some things in business you just can’t avoid, and creating a growth plan is one of them. If you don’t want your business to disappear into thin air, you need to create a proper growth plan.

A growth plan literally has the power to take your business to heights, but only if you create it properly and accurately. It’s not even a gigantic task, considering that you have Bit.ai with you.

So, what are you waiting for? Go ahead, start working on your growth plan and skyrocket the growth of your business. We’re totally rooting for you!

Got any questions or suggestions? Feel free to tweet us @bit_docs. We’d get back to you as soon as possible.

Further reads: 

Financial Plan: What is it & How to Create an Impressive One?

13 Growth Marketing Strategies You Must Know About!

Mitigation Plan: What Is It & How To Create One?

12 Sales KPIs Your Sales Department Should Measure!

Go-To-Market Strategy Guide for Businesses!

Communication Plan: What is it & How to Create it? (Steps included)

How To Develop a Growth Mindset That Will Change Your Future?

12 Marketing Goals You Must Include In Your Plan!

Performance Report: What is it & How to Create it? (Steps Included)

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About Bit.ai

Bit.ai is the essential next-gen workplace and document collaboration platform. that helps teams share knowledge by connecting any type of digital content. With this intuitive, cloud-based solution, anyone can work visually and collaborate in real-time while creating internal notes, team projects, knowledge bases, client-facing content, and more.

The smartest online Google Docs and Word alternative, Bit.ai is used in over 100 countries by professionals everywhere, from IT teams creating internal documentation and knowledge bases, to sales and marketing teams sharing client materials and client portals.

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10 Business Growth Strategies + Successful Examples

Casey O'Connor

What Is a Business Growth Strategy?

How to develop a business growth strategy, 10 business growth strategies explained, examples of successful growth strategies, tips for business growth in 2023.

All businesses, regardless of size or industry, hope to achieve growth in their lifetime. 

The specific intended outcomes of business growth goals will vary depending on the size of your company, its strengths and needs, and its position in the market. 

Unfortunately, although all businesses aim to grow, only 25% of them make it to 15 years of operation. Effective methods and strategies must be executed correctly in order to expand; this is where business growth strategies come into play.

A business growth strategy is a framework of the actions a business will take to meet their growth goals, and can help your organization achieve them for scalable success. 

In this article, we’ll go over everything you need to know about business growth strategies, including what they are, how to develop one, and ten of the most effective ones available for businesses today. 

Here’s what we’ll cover:

• How to Develop a Business Growth Strategy 

A business growth strategy is an outline of the methods, tactics, and specific actions an organization will use to meet business goals. 

Business growth strategies can help businesses achieve a variety of different goals. 

Some business growth strategies are focused on revenue, while others prioritize the size of the customer base. 

Some business growth strategies are all about increasing an organization’s physical presence (opening a new store location, for example), while others are about developing new products or marketing to new audiences. 

A business growth strategy is basically an action plan, based on relevant market research, that explains exactly how your business will grow. It’s designed to help businesses capture more market share.

The specifics of your business growth strategy will depend on the unique needs of your business.

That being said, the process of developing the framework for new business growth strategies is more or less the same each time. 

1. Perform Market Research

Solid business growth strategies are always based on recent and relevant market data. 

Thorough market research will give you insight into current and potential customer preferences, industry trends, and your company’s position in the market relative to its competitors. 

It’s extremely important to get the lay of the land, so to speak, before you design your business growth strategy. Effective business growth goals need to be created using context from the overall market.

2. Establish Goals

You can’t have a business growth strategy without concrete goals. 

In the beginning, try to plan short-term goals. Your business growth strategies should be focused on month-long or quarter-long periods as you get started. This will enable your team to go through the goal-setting and strategy-planning process quickly and frequently.

3. Identify Your Growth Strategy

There are a number of different specific growth strategies for your team to consider that may meet your growth needs. The growth strategy you choose will ultimately depend on your organization’s budget, opportunities, competition , and goals. 

We’ll go over some of the most effective business growth strategies in the next section of this article. 

4. Map Out Your Execution Plan

Once the high-level planning is complete, it’s time to outline the exact actions your team will take to meet your growth goals. 

5. Create a Forecast

6. Monitor, Measure, and Optimize

Once you start executing your business growth strategy, you need to monitor its progress in real-time. 

Make sure you’re measuring your activities and their results at regular intervals, and follow a standardized process for tracking and analyzing data.

Tip: Ensure you have the right tools in place to ensure growth with our free blueprint below.

Following are 10 of the most effective and common business growth strategies. 

1. Market Penetration

A market penetration strategy is designed to help your organization increase its market share. The goal is to sell more of an existing product in an existing market.

One way to achieve a market penetration strategy is by lowering prices or offering promotions and discounts. 

Market penetration is a particularly effective strategy for SMB businesses because it is low-risk. 

Other effective tactics in a market penetration strategy include:

• Discounts for bulk/volume purchases
• Increase the number of distributors/dealers you work with 
• Offer free trials
• Direct marketing 

The bottom line is to sell more of your product in your existing market. In a market penetration strategy, the company is aiming to reach the maximum number of customers in the market until it becomes saturated.

2. Market Development

A market development strategy is all about selling existing products to new markets. This business growth strategy is aimed at growing the customer base. It works well for companies who are still working to find their position in a strong existing market. 

Market development relies on astute and thorough market research. Succeeding with this strategy is about more than just beating out your direct competitors. You may need to explore new geography, new customer segments, or new channels. Franchising is also a good option for certain industries.

Market development can be very lucrative; most companies achieve the most profitable growth when they’re able to move into an adjacent target market.

3. Product Expansion 

A product expansion business growth strategy relies on the creation of new products and services. These new offerings help your organization increase their market share. 

Many teams get creative with a product expansion strategy. It doesn’t always mean that you need to create brand-new products. You could also add updates to existing products, or add new varieties. You could also create bundles of existing products. 

Market research and marketing strategy analysis will help you determine the market needs and how you can most effectively tweak your offerings to meet those needs. 

4. Acquisition

Most people are very familiar with acquisitions. An acquisition is a business occurrence in which one company purchases another company. 

Acquisitions are sometimes lumped together with mergers, but the two are actually slightly different concepts. In an acquisition, one company takes over another one. In a merger, two companies join together. 

Acquisitions can be extremely profitable, but they require a lot of capital upfront, healthy cash flow, and significant debt capacity. For those reasons, acquisitions are usually completed by mature companies. 

If your organization can manage the expenses, though, they’re a great business growth strategy. Acquisitions reduce competition, give you access to proprietary technology, and expand your customer base.

5. Alternative Channels

One cost-effective business growth strategy is marketing on alternative channels. 

This strategy allows you to potentially reach new markets without creating any product changes. Exploring alternative channels is a very popular business growth strategy for small businesses who are just getting off the ground.

Consider the following alternative channels as you grow your business: 

• Website presence
• Yelp business page
• New platforms for sales, like Amazon, eBay, or Etsy
• Paid search ads
• Wholesalers
• Email marketing
• Social media (Facebook, Twitter, LinkedIn, Instagram)
• Business blog 

Omnichannel marketing is growing in popularity and is a very effective way to meet sales goals in the 21st century.

6. Strategic Partnerships

In a strategic partnership, two companies join forces for mutual benefit, while each still maintaining their own brand identity and operations. 

Partnerships allow each company to access the other’s customer base. It also allows for the shared use of critical resources like manpower, equipment, and technology. 

Because there’s less at stake, partnerships are more common than mergers or acquisitions.

7. Market Segmentation

With a market segmentation growth strategy, sales and marketing teams work to carefully segment their markets based on factors such as geography, demographics, or buying preferences. 

This highly-targeted segmentation allows sales teams to focus on and specialize in segments that are less explored than others already served by the competition. 

8. Organic Growth

The most ideal business growth strategy is known as organic growth. 

Organic growth requires little to no advertising, mergers, or acquisitions, and instead represents an optimized set of conditions that allow your marketing campaigns and products to reach many parts of your target audience without much effort on your part. 

9. Diversification

This type of business growth strategy can be risky, but also has a high return when executed correctly. 

Diversification means that sales teams sell either new products, or sell to new markets — or, in some cases, both. 

• Horizontal diversification: sales reps sell a new product to the current market.
• Vertical diversification: a business starts competing with its suppliers or customers. 
• Concentric diversification: a company creates a new product that’s similar to an existing product.
• Conglomerate diversification:  sales reps sell new products to new audiences.

Diversification requires a lot of capital and has the highest risk of failure out of all of the business growth strategies outlined in this article.

10. Cost Reduction

A cost reduction business growth strategy relies on organizations to reduce their operating costs. This frees up cash for reinvestment into growth opportunities and improves your overall bottom line.

Here are some strategies for implementing a cost reduction strategy: 

• Use accounting software to reduce or eliminate errors
• Go paperless
• Consider automation and/or outsourcing where possible
• Reduce traditional advertising methods and go digital instead

There is no one-size-fits-all when it comes to business growth strategies. You may find that several could fit the needs of your team, or that your needs change over time. It’s perfectly okay to use a variety of strategies over time — or even simultaneously.

Every brand with even an inkling of name recognition has successfully used a business growth strategy. Here’s a look at how some of the world’s most well-known companies have used popular business growth strategies to succeed.

Market Penetration: Facebook

When Mark Zuckerberg launched Facebook, he shared the platform with only his fellow Harvard students. He later opened it up to Stanford, Yale, and Columbia. Later, again, he went on to share it among all the Ivy League schools, and some select Boston ones as well.

This is a perfect example of market penetration. Zuckerberg took his existing product and maximized the number of customers he “sold” it to within his market.

Strategic Partnership: Lyft & Taco Bell

Lyft & Taco Bell joined forces for one of the most memorable (and delicious) strategic partnerships in pop culture history. 

During the partnership, Lyft offered riders free access to “Taco Mode,” during which passengers could make a pit stop at Taco Bell on the way to their destination. This drove sales up for Taco Bell, and drew hungry customers away from competitor Uber and into the backseat of a Lyft.

Diversification: Amazon

It’s a well-known fact that the online retailer Amazon started as a books-only e-commerce platform. 

Over time, the company expanded to sell toys, DVDs, music, furniture, and — eventually — just about anything you could ever want. 

This is a textbook example of a diversification business growth strategy.

Here are some of our best tips for business growth in 2023. 

Carefully Consider and Combine Strategies

There are many more than the ten business growth strategies outlined here in this article, and each one has advantages and drawbacks. 

Take time — and even trial and error — discover which meets the needs of your specific business goals at any given time. 

In many cases, it’s also appropriate to use more than one business growth strategy at the same time. 

Understand Your Brand Identity 

In order for your business to grow, you need to have a very nuanced and thorough understanding of your brand, its identity, and its position in the market. 

Your business’s strengths, differentiating factors, unique selling points (USPs) , and core competencies will all help your business grow in a sustainable way.

Be Ready to Pivot

Successful and scalable business growth requires flexibility. 

Business growth strategies are great because they help sales and marketing teams stick to a plan, but they also allow teams to monitor progress and adapt strategies as needed. 

The most successful businesses are the ones that keep a careful pulse on their business progress and are ready to make changes as needed. 

Automate Everything 

Truly scalable growth requires capable systems running behind the scenes. 

Sales reps can’t afford to waste time entering data, manually setting appointments, and collating buyer insights into something actionable. 

Sales software like Yesware can help reps save time by automating administrative tasks, so they can focus on revenue-generating sales activities. 

What business growth strategies have been successful for your business?

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How To Create A Business Growth Plan

What Is A Business Growth Plan?

Why should you have a business growth plan, what things can influence business growth, what are the key components of a business growth plan, the four key growth strategies explained, what to write in your growth plan, top tips for implementing your plan.

Let’s start with Benjamin Franklin’s famous quote, ‘If you fail to plan, you are planning to fail.’

This is why a business growth plan is so essential. By identifying your business growth strategies, you are not only providing a clear assessment of your small business but implementing ways to achieve your growth goals.

A small business growth plan takes into consideration the various tools that can support your goals and targets, helping you stay on track and monitor progress.

Want to know how to write a business growth plan that will help your company succeed? This guide will provide everything you need to get started.

Your small business growth plan is a projection of where you see your business in the next one to two years. A business growth plan is a systematic framework of business growth that outlines your objectives, goals, targets, and clear strategies to grow and succeed.

Essentially, a business growth plan acts as your roadmap to reaching your growth targets.

Why are business growth plans important? Creating a business growth plan not only identifies the current state of your business but the steps and activities that are needed to achieve your objectives.

Without a business growth plan, your business direction and success can be blurred or stop aligning with your overall vision and goals. Constructing a clear plan that is tailored to your business is vital for longevity and success. Navigating growth during the business growth stage of your life cycle is based on continuously boosting brand awareness and your consumer base.

At this stage in your business journey, it’s important to consider implementing your business growth plan to retain customer engagement and attract new prospects.

Thinking of creating a business growth plan? Here are the benefits:

Prioritise key areas of growth and expansion

Improved clarity helping to identify where to focus your efforts in the future, set clear goals for growth targets, improve internal accountability and evaluate your team, manage cash flow, identify financial projections, plan for success and support funding.

Business growth can be influenced by various factors and variables. Whether it’s variation in finances, demand, or audience, many factors are likely to affect growth opportunities.

That’s why it’s important to identify and recognise the factors that can influence the expansion of your small business.

Key factors that can influence business growth:

Customer loyalty

Operational skills, technological advancements, poor online presence, social responsibility, innovation and openness to new ideas, budgeting and finances.

Inception, growth, and success depend on the effectiveness of your business growth plan. Creating a business plan to highlight clear strategies to expand and what the future looks like for your business, is vital for monitoring your business performance.

It’s vital to establish growth milestones and goals.

Using SMART goals can help define the parameters you need to set attainable objectives in a realistic time frame. Using SMART goals as a tool and starting point for your business goals is a great way to strategically plan and achieve goals without the need for overcomplication.

SMART stands for Specific, Measurable, Achievable, Relevant, and Time-Bound.

Identifying key metrics for success is also vital when monitoring your business growth. It’s important to remember that establishing how you measure success depends on your specific business growth plan, as a marketing strategy and product strategy will have different metrics.

Here are the most common metrics to understand whether your business is succeeding:

Net income ratio

Break-even point, monthly recurring revenue, leads, conversion, and bounce rate, customer satisfaction.

The five stages of the business growth life cycle help to determine a timeline for your business plan. Whether you’re trying to get your business off the ground or aiming to retain customers, understanding which stages your business is currently in can help maintain momentum and morale.

Stage 1: Existence

Stage 2: survival, stage 3: success, stage 4: take-off, stage 5: resource maturity.

Stage 1 - Existence identifies your small business among customers in your desired market.

Transitioning into stage 2 - the need to survive, cover costs, and break-even., stage 3 - a pivotal stage for financial health., which leads on to stage 4 - take-off encapsulates your growth plans and goals., finally, stage 5 - resource maturity is your wealth of financial resources to engage in detailed operational and strategic planning for continued growth and success..

The business growth life cycle illuminates the progression of your business in phases to illuminate early losses, minimise future risks and fuel market share and penetration.

Setting a timeline for your growth improves accountability and encourages your team to work towards a set deadline. Short-term timelines not only help you monitor success but stay on track towards your goals.

Employing growth strategies in your small business works to strategically increase demand and remove unprofitable outputs from your operations. Consolidating and managing financial gains is crucial for rapid growth and expansion, a goal that growth strategies clearly outline.

Consider these key growth strategies when creating your growth plan:

Market Strategy: Fuelling awareness for your product or service is a direct result of your market strategy. Generating and converting leads into paying consumers is vital for growth, increasing your market share and maintaining customer engagement. This growth strategy is vital to outperform competitors.

Market development: have you introduced your product or service to new markets without a clear plan on how to successfully capitalise on diversifying your market share, you may limit your expected growth. recognising and enhancing sales opportunities for your existing products is key to continued growth., product strategy: concisely defining what exactly your product or service’s main goals are and how you plan to achieve them is key to your small business growth. whether it’s improving customer satisfaction or sustaining product features, understanding what you want to accomplish with your product will help you effectively communicate both internally and externally., diversification: the best way to increase exposure and reduce volatility is by diversifying your supply chain. introducing a new product or service or entering new markets expands your market share, increasing profits and growing your business..

Unsure where to start with creating your business plan?

Here are our essential components to include to ensure your plan is effective and worthwhile:

• Executive summary
• Business description
• Market analysis
• An overview of the business marketing strategy
• Competitive analysis
• Management and ownership details
• Product and services description
• Operating plan
• Financial details, forecasts, and projections
• Staffing and recruitment needs

Using this as a checklist will make the process less complex, breaking down each stage and building your credibility.

It’s important to remember that business growth plans are not only used by employees and leadership but also by potential investors. Accurately presenting how you plan to use capital and fuel growth in your plan is key to securing future success.

Creating a plan that is actionable and effective for your business growth goals is half of the battle. Implementation is key to reaping the benefits of your plan and delivering results, as a successful business plan incorporates all elements of your small business.

Here’s how you can implement your business growth plan:

Start by introducing your internal team to the SMART growth goals

Consider the tools and resources on offer to support your goals and strategies, analyse your results, making adaptations and improvements, continuously optimise your growth strategies, making new growth plans, consider and review competitors’ growth plans, encourage employee input by ensuring your team is effectively using their skills and expertise, don’t forget about marketing - involve marketers in your growth planning, my new venture is here to guide you on your business goals and objectives to help you grow and expand., related guides.

Are you thinking of entering a new market or growing your current business? If the answer is yes, keep reading.

Unsure how to keep your business objectives at the forefront of your decision-making? It’s time to create a set of KPIs that will help you to not only grow your small business, but illuminate the progress needed to achieve your goals.

Have you made a business plan yet? If the answer is no, keep reading.

More From Forbes

16 best tips for crafting a successful growth strategy plan.

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Growing a business that will last for the long term requires recognizing that growth fluctuates. Sometimes, your business will see a tremendous increase in sales. Other times, you'll lose business or stay at the same level of sales for an extended period of time. If you want growth that is sustainable well into the future, you'll need to remember that growth isn't constant or quick, and you'll need to plan for this as best as you can.

To avoid the pitfalls of chasing after fast growth that can only last for a short while, follow the tips of 16 members of Forbes Business Development Council . Their suggestions for creating a growth strategy plan can enable you to maintain sustainable growth for the life of your business.

1. Incorporate Customer Feedback Into Your Plan

Incorporate your customers into your growth strategy plan. Listen to your customers and make sure they're happy. Then, use their feedback to inform your plans as your business grows. Happy customers will stick by you, serve as references and advocates for your business and buy more services and products. - Ed Calnan , Seismic

2. Create Your Own Product Or Service Category

Go after the blue ocean . Chart your own path and create your own product or service category. Naturally, you want to become king of that category and make substitute competitors obsolete along the way. If you are even somewhat successful at this, you will build a new market with years of potential growth as it develops and matures. - Matt Mong , Adeaca

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3. Balance Focus On Acquisition And Retention

Balance growth with the type of growth you are looking for. Companies that separate acquisition teams from retention, brand and customer success often create unsustainable growth because the focus is on "acquire at all costs." A more balanced perspective is circular marketing: acquire, retain, delight, garner referral and word of mouth and repeat. - Benish Shah , Loop & Tie

4. Invest In Improving Your Sales Team's Skills

Make the necessary investment into upskilling your sales teams and sales infrastructure. According to the Sales Management Association , a formal sales process improves revenues by 18%, three hours of pipeline management per month improves revenues by 11% and trained sellers bring in 9% more revenue. Organizations that followed all three of those best practices saw a 28% increase in revenues. - Joe DiDonato , Baker Communications, Inc.

5. Leverage Your Available Resources

Leverage your resources to increase your chances of success and decrease costs. I work with universities in the early stages of drug development because it’s the best way to increase the chances of success. The workflow becomes more efficient, and I’m able to utilize the university’s expertise and assets. This allows me to keep track of the early-stage work while staying focused on the big picture. - Gabi Hanna , Lamassu Pharma, LLC

6. Build An Agile Culture

Building an agile culture that enables organizational adaptability is key to long-term growth and viability. Businesses today must respond quickly and strategically to constantly changing conditions, new competitors and unforeseen events. Formal processes to enable innovation are critical, as is an organizational and leadership environment that embraces and rewards risk-taking. - Jorge Rodriguez , Claro Enterprise Solutions

7. Turn Core Data Into Actions

Data is at the heart of sustained growth. Defining core metrics and capturing the right data is a key to success. However, knowing where you are and where you are going is not enough. Growth comes from the organization's ability to turn data and bold strategy into action through a relentless focus on the customer, empowered teams, processes and systems that enable agility and experimentation. - Anastasia Egorova , Skechers U.S.A.

8. Offer Incentives For Returning Results

Employee happiness and engagement play heavily in overall business success. Offering incentives for high performance is one way to engage your workforce. It is also critical to align departmental strategies to your overarching corporate strategy and communicate to employees how their hard work positively impacts the organization. - David Gerry , WhiteHat Security

9. Review Your Progress At Each Milestone

Many organizations map out their growth strategy journey milestone-by-milestone to a specific destination but fall short when it comes to managing the journey itself. Check your progress regularly and learn from your experiences. If you need to do things differently, be proactive. Make sure any changes are focused on delivering the results your organization is looking to achieve. - Matthew Ainsworth , Miratech

10. Share Your Successes

Growth is an investment of time mixed with positive and negative uncertainties. Do you believe in the growth strategy enough to own 100% of the risk of failure? Show your confidence by designing a compensation strategy that rewards the completion of objectives and gives bonuses for results. - Steve Taylor , VentureDevs

11. Quickly Onboard New Employees

The best growth strategy involves quickly onboarding and training new hires. Onboarding takes significant time and energy, so finding new methods of expediting the process without losing quality is essential. Technology is a powerful tool in helping scale and expediting onboarding. The quicker new employees are up to speed, the quicker they can contribute revenue to support the growth plan. - George Donovan , Allego

12. Build Flexibility Into Your Plan

An effective growth plan specifies the annual incremental and measurable steps required to realize the long-term potential of the business. As for a tip, I suggest building in flexibility so you can pivot. For example, if you need salespeople, consider alternatives to full-time hires, such as outsourcing the work or hiring contract workers. Consider fractional sales leadership, and explore partnerships with third parties who have a salesforce in place. - Erwin Tumangday , Klick Health

13. Set Goals Then Measure Repeatedly

I think you need to make sure your team has goals, such as one-month, one-year and five-year goals. Once you have them, it'll be easier to set your KPIs to reflect those growth goals and determine which markets and products you will use to hit those goals. Measure everything, then measure them again. If you don't measure it, it doesn't matter. Measuring will define where you need to be today and in the future. - Angie Barnes , NAVCO

14. Understand Your Revenue Engine

Understanding your revenue engine is critical. Once you understand how long it takes for a new rep to become productive, how much it costs to hire and onboard them and how much revenue they can deliver at full capacity, you can begin to predict your future cost of sales and growth rate. Too many companies spend too much time focused on building a perfect product without a scalable sales engine. - Ray Makela , Sales Readiness Group

15. Place The Customer At The Center

Create a culture of high customer-centricity. Sometimes, a growth strategy becomes too inward-looking, so it is important to always ask the question, "So what?" Having the customer at the heart of the growth strategy allows you to create the business agility that is needed to navigate the highly dynamic business environment. - Balajee Sethuraman , emids

16. Focus On What You Know

Focus on what you know and expand into new markets only once you're ready. Organizations have a core product or service that initially made them successful. Continue to focus there as the primary growth driver to increase revenue and market share. Only after you have built a strong foundation should you then consider expanding into new use cases and ancillary products as part of the growth strategy plan. - Stuart Bern , ATTOM Data Solutions

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Growth Tactics

Creating an Effective Business Growth Plan

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As a business leader, you understand the importance of continually striving for growth and development in your enterprise. A carefully crafted growth plan can help you achieve your goals by outlining specific strategies and action plans to ensure that your company continues to thrive. In this article, we’ll explore the key components of an effective growth plan for your business and offer practical advice to help you create a roadmap to success.

What is a Growth Plan and Why Do You Need One?

A growth plan is a document that outlines the strategies and tactics that a business will use to achieve and sustain growth over a specified period. This plan should include a clear vision statement, measurable goals , and a detailed description of the strategies, action plans, and key performance indicators (KPIs) that will drive business growth. A growth plan can help you set goals and targets, identify potential challenges and opportunities, and ensure that all stakeholders are aligned with your vision. Furthermore, having a growth plan can help ensure the longevity of your business by providing a roadmap for success.

Factors Impacting Business Growth

Several factors can have a significant impact on the growth of a business. It is essential for business leaders and managers to identify and understand these factors in order to navigate the path to success. Let’s explore some key factors that influence business growth:

1. Economic Conditions

The overall health of the economy can greatly affect business growth. During periods of economic prosperity, with increased consumer spending and confidence, businesses tend to experience growth opportunities. Conversely, during economic downturns or recessions , consumer spending may decline, leading to challenges for businesses.

2. Market Demand and Competitiveness

The demand for a product or service has a direct impact on business growth. Assessing the market demand for your offerings, understanding consumer preferences, and identifying any gaps that your business can fill are crucial steps. Additionally, businesses need to evaluate the competitive landscape, including the presence of established competitors, barriers to entry, and emerging trends, in order to position themselves for growth.

3. Innovation and Technology

Keeping up with technological advancements and embracing innovation is essential for sustaining growth. Businesses that invest in research and development, adopt new technologies, and stay ahead of industry trends are often better positioned for growth. Innovation can lead to improved efficiency, enhanced product offerings, and increased customer satisfaction, all of which can drive business growth.

4. Financial Resources

Access to financial resources, such as capital for investment and working capital, is vital for business growth. Adequate funding allows businesses to expand operations, invest in marketing and advertising, develop new products or services, and hire additional staff. Businesses need to assess their financial capabilities and explore funding options to support their growth strategies.

5. Human Capital

The skills, knowledge, and expertise of the workforce are critical for driving business growth. Hiring and retaining talented employees who are aligned with the organization’s goals and values is essential. Businesses that invest in training and development programs, foster a positive work culture , and empower their employees are more likely to experience sustainable growth.

6. Regulatory Environment

The regulatory environment in which a business operates can impact growth opportunities. Compliance with industry-specific regulations, government policies, and legal requirements is crucial to avoid penalties and maintain credibility. Understanding and navigating the regulatory landscape allows businesses to identify potential obstacles and take necessary measures for growth.

7. Customer Satisfaction and Retention

Customer satisfaction and retention play a significant role in business growth. Satisfied customers are more likely to become repeat customers, refer others to the business, and contribute to its growth. Businesses need to focus on providing exceptional customer experiences, delivering quality products or services, and maintaining strong customer relationships to foster loyalty and drive growth.

These factors are just some of the many elements that influence business growth. By actively assessing and addressing these factors, businesses can create strategies and make informed decisions that contribute to their long-term success and expansion.

How to Develop a Growth Plan for Your Business

Developing a growth plan for your business is a crucial aspect of achieving long-term success. To create an effective growth plan, follow these steps:

Step 1: Define Your Growth Goals and Objectives

The first step in creating an effective growth plan is to define your goals and objectives. Think about where you want your business to be in three, five, or ten years and develop specific and measurable goals that will help you achieve your vision.

Step 2: Understand Your Business Needs

In order to create a growth plan that works for your business, you need to understand its needs. Consider the following questions:

• What are your business goals?
• Who is your target market?
• What products or services do you offer?
• What are your current strengths and weaknesses?
• What are the potential growth opportunities for your business?

Answering these questions will help you identify specific areas of your business that require additional attention and focus, and help you create a growth plan that addresses them.

Step 3: Develop a Strategy for Growth

Once you have defined your goals and identified the needs of your business, the next step is to develop a strategy for growth. Consider the following:

• What strategies and tactics will best help you achieve your growth goals?
• What internal resources or external partnerships will you need to execute your plan?
• What role will new products or services play in your growth strategy?
• Are there any particular areas of your business that you want to focus on developing?
• How will you measure success and ensure that your strategy is working?

Developing an effective growth strategy requires careful planning and consideration of various factors that can impact your business.

Step 4: Establish an Action Plan

With your growth goals defined, business needs understood, and a strategy created, the next step is to establish an action plan. This plan should outline specific initiatives that will help you achieve your growth targets, including timelines, milestones, resource commitments, and key performance indicators.

Step 5: Monitor and Adjust Your Plan

Developing a successful growth plan requires ongoing monitoring and adjustment to ensure that you remain on track and continue to grow. Regularly review your progress against your KPIs and take corrective action as needed to keep your business moving forward.

Tips for Creating an Effective Growth Plan

When it comes to business growth, creating an effective plan is crucial to achieving your goals and moving your organization forward. Here are some tips to help you create a growth plan that will work for your company:

Set Realistic Goals

It’s important to set goals that are achievable but also challenging. Make sure you consider your current business situation and resources, as well as your desired outcomes when setting your targets.

Understand Your Market

Your target market plays an essential role in your business growth. Ensure you have a deep understanding of your customer’s needs, their pain points, and the challenges they are facing.

Consider All Growth Strategies

Exploring diverse growth strategies can help you expand your business, reach new customers, and diversify your offerings. This could include everything from developing new products and services, expanding into new markets, or improving your operations and processes .

Focus on the Long-term

While short-term objectives are vital for any business, it’s equally critical to have long-term goals in mind. This ensures that you develop a roadmap to move toward your vision and don’t get sidetracked by short-term wins.

Foster an Organizational Culture of Growth

Building this culture starts from the top and should be reflected throughout your organization. Encourage staff to be innovative , take calculated risks, and capitalize on new opportunities and ideas to drive growth forward.

Identify Key Performance Indicators (KPIs)

To effectively measure your progress toward your growth goals, it is important to identify and track Key Performance Indicators (KPIs). These indicators can include metrics such as revenue growth, customer acquisition rate, customer satisfaction, market share, or any other relevant metrics specific to your business. Regularly monitoring these KPIs will help you assess if your growth plan is on track and enable you to make informed decisions and adjustments as needed.

Develop a Marketing and Sales Strategy

A strong marketing and sales strategy is crucial to drive business growth. Clearly define your target audience, develop compelling messaging, and identify the most effective channels to reach and engage your potential customers. Leverage digital marketing techniques, social media platforms, content marketing, SEO, and other tactics relevant to your industry to maximize your reach and generate quality leads. Align your marketing and sales efforts to ensure a seamless customer journey that leads to conversions.

Invest in Employee Development

Your employees play a significant role in driving business growth. Invest in their professional development and provide training opportunities to enhance their skill sets. Empower them to take ownership of their responsibilities and encourage a culture of continuous learning and improvement. By fostering a motivated and skilled workforce, you can boost productivity , innovation, and overall business performance.

Foster Strategic Partnerships

Strategic partnerships can be a valuable growth strategy for businesses. Look for complementary organizations or businesses with shared target audiences and explore opportunities for collaboration. By partnering with other businesses, you can tap into new markets, leverage each other’s strengths, share resources, and mutually benefit from the synergies created.

Continuously Monitor and Evaluate Your Plan

Creating a growth plan is not a one-time task; it requires ongoing monitoring and evaluation. Regularly review your progress, reassess your goals, and adjust your strategies as needed. Stay updated on market trends, customer preferences, and industry developments to ensure your growth plan remains relevant and effective. Be agile and adaptable in responding to changes and seeking new opportunities for growth.

Business Plan vs Growth Plan

Business plans and growth plans are essential tools for businesses, but they serve different purposes. While a business plan outlines the basics of a company, including its mission, product offerings, and financial projections, a growth plan focuses specifically on strategies to drive business growth. Let’s explore the differences between the two:

Business Plan

A business plan is a detailed blueprint of a company’s goals and objectives, outlining how it intends to achieve them. It typically includes the following components:

• Executive summary: A brief overview of the company’s mission, goals, and financial projections.
• Company description: A detailed description of the company’s mission, historical background, products or services offered, and target market.
• Market analysis: An overview of the industry, including trends, competition, and target audience.
• Organization and management: An overview of the company’s organizational structure , leadership team, and management style.
• Products and services: A detailed description of the company’s products or services, including pricing, distribution, and marketing strategies.
• Financial projections: Forecasted financial statements, including income statements, balance sheets, and cash flow statements.

A business plan serves as a roadmap for a company’s future, laying out how it plans to operate, grow and succeed.

Growth Plan

A growth plan is a strategic document designed to identify and prioritize strategies to drive business growth. Instead of focusing on the basics of the company like a business plan, a growth plan zooms into the company’s growth opportunities. It typically includes the following components:

• Review of business environment: An overview of the current business conditions and the challenges and opportunities that exist in the market.
• Mission and vision statement: A reaffirmation of the company’s goals and aspirations, and how these will translate into growth strategies.
• Goals and objectives: Specific, measurable objectives that align with the company’s mission and growth aspirations.
• SWOT analysis: An assessment of the company’s strengths, weaknesses, opportunities, and threats.
• Strategies and tactics: A detailed outline of the strategies and tactics that will be used to achieve the company’s goals and objectives.
• Performance metrics: Objective measures that will be used to track and evaluate the success of the growth plan.

A growth plan offers a framework for businesses to identify and prioritize growth opportunities, set realistic growth targets, and develop actionable strategies to achieve those targets.

In summary, while a business plan outlines the basics of a company, including its mission, goals, and financial projections, a growth plan focuses on strategies to drive growth. While both plans are essential for the success of a business, they play different roles in the development and execution of a company’s strategy.

Key Takeaways

Creating an effective growth plan for your business involves identifying your goals and objectives, assessing your business needs, developing a strategy, establishing an action plan, and monitoring and adjusting your plan as needed.

By following these steps and adopting a growth mindset, you can successfully achieve your business goals, help your organization thrive, and continue to grow for years to come. Remember to set realistic, measurable targets, focus on your customers’ needs, and stay open to new opportunities. With a well-constructed growth plan, you can continue to make your business successful and continue to grow.

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How To Build a Company Growth Strategy

• Abbey is a digital marketer, copywriter, and lead editor. She has worked on over 200 client campaigns and WebFX, and she specializes in marketing strategy analysis and industry-specific digital marketing plans. Outside of writing and editing, you’ll likely find her taking pictures of her cat, making a new playlist, or tending to her houseplants.

Companies aren’t built overnight. It takes time, work, and planning to get your business up to your ideals. That’s why a business growth strategy can make all the difference in your company.

A business growth strategy is a plan for improving your company, earning more revenue, and building your reputation. If you want the best chance at success with your company, you need to plan before acting.

This page will cover the following topics to help you understand company growth strategies and create your own:

What is a business growth strategy?

What makes an effective growth strategy, types of business growth, types of growth strategies, 7 steps to creating a business growth strategy, bonus: 3 tips for success.

Read on to learn more and contact a strategist at 888-601-5359 to dive into your business strategy today!

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A business growth strategy is a plan for expanding your business to earn more customers and revenue. Every business likely has expansion goals to keep afloat, but a dedicated growth plan can help set you up for success.

Say that you run a local bakery. While the overall goal might be to sell as many goods as possible to keep earning profit, a growth plan could outline ways to expand your customer base , open new locations, and have a bigger impact on the community with your branding.

A growth strategy should be unique to the business it’s meant to help. However, all businesses can benefit from following a few basic steps to create a solid growth strategy.

Your growth strategy should accomplish the following to be successful:

• Consider short-term and long-term goals for your company.
• Work within your budget, existing technology, and staffing capabilities.
• Avoid risky expansion tactics that could be detrimental to your company.
• Include small, achievable goals that put you closer to expansion.

Business can pursue a few different types of business growth, including

Partnership/merger/acquisition

Let’s break down each one below.

Definition: Growth achieved through increasing output and sales internally with no outside acquisitions.

Organic growth is the most ideal form of growth that happens naturally over time. If you experience growth organically, that generally means business is going well without major planning or external influence. A growth loop is a great way to achieve this.

Definition: Growth that comes from a strategic initiative rather than uncontrollable market forces.

Strategic growth is part of any growth strategy. While organic growth is natural, strategic growth happens when you plan and create prospective business opportunities.

Definition: Growth achieved from expanding activities, such as launching new products and services or testing new markets.

Internal growth looks at what you can do within your company to earn more revenue. Creating new products and internal opportunities can help you attract more clients to your company.

Definition: Growth achieved from collaborating with or absorbing another business.

Working with or acquiring new businesses can help both companies see success. In many cases, companies will choose related or adjacent businesses to collaborate with to earn more revenue.

Along with the different types of growth, there are different types of growth strategies you can harness. The following company growth strategies can help you shape your plan for expanding:

• Customer: A plan to boost customer acquisition over a set time.
• Product: A strategy to boost product purchases or sign-ups and expand product lines.
• Marketing: A plan to increase the company’s total available market and expand into other markets.
• Revenue: A plan to increase revenue over a certain period.

Below are seven steps to creating the ideal growth plan for your business:

• Evaluate your current standing
• Select your target growth area
• Research the market and industry
• Outline goals
• Create a timeline and strategy
• Gather any tools or resources
• Execute your plan and evaluate the results

1. Evaluate your current standing

Before you start developing a growth plan, you must understand how your business is operating currently. You should look at the following factors to see where your company stands:

• Existing customers
• Customer reviews
• Marketing channels

Be sure to investigate trends over time and look for patterns in your sales history. You can also look at competitors to see where they stand in the market.

2. Select your target growth area

Once you get an overview of your business standing, you can select a target area of growth.

You might find that you aren’t earning any sales on certain products, even though you have been paying to advertise them. Or, you might see that revenue falls during certain times of year. Regardless, you should base your growth around realistic needs for your business.

3. Research the market and industry

Once you establish an area of need, look to the market to see if this growth is achievable. Understanding market health can prevent wasted time on unachievable growth.

You can run focus groups with your own customers or use other data-backed research from industry names. This step will help you see where your business can fill gaps in the market and strengthen its assets.

4. Outline goals

Creating goals will define your strategy for the time being. Ideally, these goals should be where you see yourself at the beginning, middle, and end of your growth strategy.

Be careful with the goals you set for yourself. This step is where setting SMART goals can help you see the most success:

5. Create a timeline and strategy

Pick a timeline for when you would like to see the peak results from your plan. Make sure that you give ample time to allow your changes and approaches to take effect.

Break down your timeline and strategy into the following:

• Action items with deadlines
• Teams or persons responsible
• Related resources

6. Gather any tools or resources

Before you can execute your plan, you’ll need to collect the tools, resources, and assistance that your plan requires. Some of those things include:

• Software: Do you need to track and store data? Evaluate the tech and software available to you and research options that could be helpful for your project.
• Funding: Outline your budget before you start investing. This step helps you determine how much you can spend on your plan.
• Services: Do you have all the personnel necessary to complete each task? Some tasks — like design, for example — might be best executed when outsourced.

7. Execute your plan and evaluate the results

Once you’ve accomplished the steps above, it’s time to launch your strategy!

As you go through the steps of your strategy, be sure to evaluate your progress and be flexible along the way. If you aren’t seeing the results you want, you can take a step back and evaluate the weak spots in your plan, so you can reoptimize it to be more effective.

Now that you’ve seen some growth strategies with examples and learned how to create your own, you’re almost set. Here are a few more tips to help you develop your growth strategy:

• Use a strategy template: Having a template for your strategy can make it easier to get started. There are many free templates online you can use to outline your approach!
• Evaluate your progress regularly: Progress is not linear or stagnant — you need to monitor key performance metrics (KPIs) that tell you how well your business is doing.
• Do a competitor analysis: A competitor analysis can help you see how your competition is doing at any given time. You can learn from their success and start implementing changes in your own company.

Work with digital marketing professionals for your company growth strategy!

Having a business growth strategy can ensure years of profitable changes for your company. Whether you’re ready to write your own strategy or need some guidance, WebFX is here to help.

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Table of Contents

• What is a Business Growth Strategy?
• What Makes an Effective Growth Strategy?
• Types of Business Growth
• Types of Growth Strategies
• 7 Steps to Creating a Business Growth Strategy
• Bonus: 3 Tips for Success
• Work with Digital Marketing Professionals for Your Company Growth Strategy!

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The 6 Ways to Grow a Company

• Gino Chirio

A growth strategy doesn’t have to be complicated.

The first step to generating real growth is to understand where it comes from. It can be boiled down to six simple categories: new processes, new experiences, new features, new customers, new offerings, and new models. Deciding which ways to grow needs to be intentional — not driven by luck. Innovation budgets are finite, so allocations of your scarce resources should reduce risk and focus on the best bets. It needs to be balanced for maximum return the same way a retirement fund needs to be balanced among high and low risks and rewards.

The term “innovation” is often associated with geniuses turning startups into gold mines — the next Google, Apple, or Amazon, with products no one even knew they needed. Private equity firms place hundreds of little bets on these startups, hoping one produces a windfall that covers the rest. These bets on the next growth engine often depend on luck more than insight.

Meanwhile, every company aspires to be as innovative as these startups. Many companies invest in or buy them, unsure what they’ll yield other than the halo effect they may overpay for, made worse by the fact that most don’t align with the company strategy or meet a market insight. The same is true of ideas: Knowing which to fund without making random bets is key. But according to  a series of three surveys  conducted over six years by Maddock Douglas, the consulting firm where I work, while 80% of executives know that their companies’ success depends on introducing new products and services, more than half agreed that their companies dedicate insufficient resources to support innovation. (For more, see Brand New: Solving the Innovation Paradox, by G. Michael Maddock, Luisa C. Uriarte, and Paul B. Brown.)

Innovation is a word that’s been attached to finding new ways to grow, and every corporation needs to grow year over year. But the first step to generating real growth is to understand where it comes from. We believe growth has been made unnecessarily complicated, so we’ve boiled it down to six simple categories with corresponding examples from Apple:

• New processes.  Sell the same stuff at higher margins: Cut production and delivery costs, automate for efficiencies, cut fat in the supply chain or manufacturing, and utilize robots.
• New experiences.  Sell more of the same stuff to the same people: Increase retention and share by powerfully connecting with customers. An example is the Apple Store experience, which many would argue is as compelling as the company’s products.
• New features.  Sell enhanced stuff to the same people: Add improvements that drive incremental purchases. An example of this is every new phone Apple releases, with better cameras and so on.
• New customers.  Sell more of the same stuff to new people: Introduce the product to new markets with needs similar to your core, or to markets where it might address a different need. For Apple, this goes back to reaching the mainstream rather than the design community.
• New offerings.  Make new stuff to sell: Develop a new product — not just enhancements. Find new needs to solve within existing markets, or invest in a new category. Think HomePod or the iPod.
• New models.  Sell stuff in a new way: Reimagine how to go to market by creating new revenue streams, channels, and ways of creating value. This can be as simple as moving to a subscription model, or as transformative as Apple’s creating iTunes.

Deciding which ways to grow needs to be intentional — not driven by luck. Innovation budgets are finite, so allocations of your scarce resources should reduce risk and focus on the best bets. It needs to be balanced for maximum return the same way a retirement fund needs to be balanced among high and low risks and rewards. For example, consider the following innovation budget allocation model:

The model above shows the relationship among these six simple ways to grow, in the context of the four quadrants of the portfolio (evolutionary, differentiation, fast fail, and revolutionary), each of which gets a percentage allocation of the innovation budget. Note that:

• New processes fall outside the innovation portfolio (no budget allocation).
• New experiences and new features are in the evolutionary quadrant (about 40%–60% of the budget).
• New customers are in the fast fail quadrant (about 10%–20% of the budget).
• New offerings are in the differentiation quadrant (about 10%–20% of the budget).
• The combination of both new customers and new offerings are in the revolutionary quadrant (about 5%–10% of the budget).
• New models can fall anywhere in the portfolio.

This same allocation model applies to investments in growth. Some ways to grow are easier than others. Cutting costs with new processes to improve margins is low-hanging fruit. It isn’t on the level of startup innovation; it’s just a more innovative way to do things. We don’t consider it part of the innovation budget because it doesn’t create value in the market, only incremental growth and continuous improvement.

The easiest goal in the innovation pie is to maintain relevance to your core market through enhancements — with new features for your current offerings or the experiences that deliver them. It’s easy because it focuses on a market you already know and on products you already know how to deliver. A company will seldom question allocating the largest portion of its innovation budget to these activities (40%–60%).

A smaller portion (10%–20%) is allocated to reaching new customers with what you know how to deliver. This low-investment, fail-fast, test-the-waters approach is more akin to how a private equity investor might approach innovation, making many small bets and quickly abandoning those that fail to get traction. The key is fast experimentation through lean, agile approaches.

Another 10%–20% is likely to go toward differentiation — developing new offerings before the competition does. These are things you’re not sure how to deliver, but you know the market wants them, making it worth trying to figure out. Efforts like these carry greater risks but promise greater rewards if you’re first to market.

That leaves the smallest portion (5%–10%) for focused bets on revolutionary, high-risk opportunities with new offerings to new customers . In this quadrant, you focus on a big idea, using agile approaches to break it apart to see which elements drive value through continuous assessments of desirability, since you don’t know for sure what the market values (even the idea itself). If you continue to clear hurdles, you stand a chance to launch a game-changer that fills an unmet need. You just have to test and experiment quickly.

New models  — new ways of delivering — can fall anywhere in the innovation portfolio, as do build, buy, or partner decisions. Knowing the type of growth that your initiatives represent and their place in the portfolio helps determine which to pursue and how, including acquiring a startup that may hold a key to the puzzle — intentionally identified by targeted criteria, which are de-risked by researching and identifying unmet needs in the market.

Knowing how growth happens, and the best ways to focus your organization’s efforts to grow, is as critical as allocating investments across the innovation risk-reward spectrum for maximum returns. Doing so works better than placing random bets on the latest startup in the hopes of getting lucky. Or worse, betting on one silver bullet that misfires.

• GC Gino Chirio is executive vice president at the innovation consultancy Maddock Douglas, where he has helped drive growth-through-innovation projects for many legacy Fortune 100 companies over nearly two decades.

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How to Write a Business Plan Outline in 9 Steps (Example Included!)

Starting a business often begins with writing a business plan , especially if you need funding . It acts as a roadmap, guiding you through each stage of launching and managing your company, and it presents a clear, compelling case to potential investors and partners. But here's the thing: not everyone finds this step intuitive. That's where a business plan outline can be incredibly helpful.

Creating a detailed business plan outline helps you organize your thoughts and ensure you cover all the key aspects of your business strategy. Plus, it might be just what you need to overcome that blank page and start typing.

Below, you'll find an easy-to-follow guide on how to craft your business plan outline, and an example to show you what it should look like.

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What is an outline of a business plan?

Think of a business plan outline as the skeleton of your entire business plan. It gives a high-level overview of the main sections you'll need to flesh out later. It's not the final document but a crucial step in getting you there.

Simply put, it's like creating a detailed table of contents for your business plan, showing you exactly what information to include and how everything fits together. A well-structured business plan outline also helps you plan things ahead, saving time and effort.

Writing a business plan outline in 9 steps

Follow these steps to build your business plan outline and learn exactly what each section should include.

(Bear in mind that every business plan is unique, tailored to the specific needs and goals of the business. While the structure below is common, the order of sections may vary—only the executive summary will always come first.)

1. Executive summary

Imagine you have just 60 seconds to convince someone to invest in your business. That's the essence of a strong executive summary. Although it appears first on your business plan, this section is often written last because it sums up the entire plan. Think of it as your elevator pitch . This section gives a quick overview of your entire business plan, highlighting key points that grab the reader's attention.

Keep it clear and concise. Start with a brief overview of your business, including its name and what it offers. Summarize your mission statement and objectives, and don’t forget to mention crucial aspects like financial projections and competitive advantages.

2. Company description

Here's where you provide detailed information about your company. Begin with the business name and location. Describe the legal structure (e.g., sole proprietorship, partnership, corporation) and ownership. If your business already exists, share a brief history.

For new ventures, explain the business's nature and the problems you aim to solve. Go into more detail about your vision and mission statements, outlining your goals and the principles guiding your business. This section helps potential investors and stakeholders grasp your company’s identity and purpose.

3. Market research and analysis

This section shares insights into your company’s industry. Start with a landscape analysis to give an overview of the market, including its size, growth rate, and key players.

Next, define your target market and customer demographics—age, location, income, and interests—detailing who your ideal customers are. Identify market needs and trends your business will address, and highlight customer pain points your product or service aims to solve.

Consider conducting a SWOT analysis to evaluate your business's strengths, weaknesses, opportunities, and threats, and gain a strategic view of where your business stands in the competitive landscape.

4. Organization and management

Describe how your business is structured and who runs it. Outline the organizational structure, and if helps, include a chart. Introduce the leadership team and key personnel, highlighting their qualifications and roles. If you have a board of directors, mention them and briefly explain their involvement.

Then, outline your production processes, detailing how your product or service is (or will be) created—from sourcing materials to delivery—to give a comprehensive view of your operational capabilities.

5. Products and services

This section of your business plan outline is crucial for showing potential investors what makes your products and services unique and valuable.

Clearly describe what your business offers, emphasizing your unique selling propositions (USPs) and the benefits and features that set you apart from the competition. Talk about the product life cycle, including any plans for future updates.

If your business holds any intellectual property or proprietary technologies, detail them here to underscore your competitive advantages.

6. Marketing strategy

Having a fantastic product or service is just half the battle. The marketing plan section should outline how you'll reach your target market and convert them into customers.

Begin with market positioning and branding, explaining how you want your brand perceived. Detail your marketing and promotional strategies, including specific tactics to reach your target audience.

Discuss your sales strategy, focusing on how you'll convert leads into customers. Lastly, include your pricing strategy and provide a sales forecast, projecting your expected revenue over a certain period.

7. Operations plan

Here, the goal is to give a detailed overview of the physical and logistical aspects of your company. Start with the business location and facilities, describing where it operates and any significant physical assets. Detail the technology and equipment needed for daily operations.

Briefly describe your supply chain and logistics processes to illustrate how you manage inventory, procurement, and distribution. Finish it by outlining your production process and quality control measures to ensure your products or services consistently meet high standards.

8. Financial plan

Use this section of the business plan to show how your company will succeed financially. Include financial projections like income statements and cash flow statements. Specify how much capital you need and how you plan to use it, discussing funding sources.

Conduct a break-even analysis to estimate when your business will become profitable. Be transparent and address any financial risks and assumptions, outlining how you plan to mitigate them.

9. Appendices and exhibits

In this section, include any additional information that supports your business plan. This might be resumes of key personnel to highlight your team's expertise and experience, or even legal documents and agreements.

Include market research data and surveys to back up your market analysis. Add financial statements for a detailed look at your financial plan. Also, provide detailed product specifications to give a clear understanding of your products and services.

Here's a business plan outline example

Not quite there yet? Take a look at this business plan outline example—it will make everything clear for you.

3.1 Executive Summary

• Overview of the business
• Key points of the business plan

3.2 Company Description

• Business name and location
• History and nature of the business
• Legal structure and ownership
• Vision and mission statement

3.3 Market Research and Analysis

• Industry analysis
• Target market and customer demographics
• Market needs, trends
• Customer pain points
• SWOT analysis

3.4 Organization and Management

• Organizational structure
• Leadership team and key personnel
• Roles and responsibilities
• Board of directors (if applicable)
• Production processes

3.5 Products and Services

• Description of products or services offered
• Unique selling propositions, benefits, features
• Product lifecycle and development plans
• Intellectual property and proprietary technologies

3.6 Marketing Strategy

• Market positioning and branding
• Marketing and promotional strategies
• Sales strategy and tactics
• Pricing strategy and sales forecast

3.7 Operations Plan

• Business location and facilities
• Technology and equipment
• Supply chain and logistics
• Production process and quality control

3.8 Financial Plan

• Financial projections (income statements, balance sheets, cash flow statements)
• Funding requirements and sources
• Break-even analysis
• Financial risks and assumptions

3.9 Appendices and Exhibits (if applicable)

• Supporting documents and additional information
• Resumes of key personnel
• Legal documents and agreements
• Market research data and surveys
• Financial Statements
• Detailed Product Specifications

Bonus tips on how to write a winning business plan

Once you've done your business plan outline, it's time to fill in the gaps and craft a winning business plan. Here are some bonus tips to keep in mind:

• Tailor it to fit your business : Customize sections to meet industry-specific needs and highlight what makes your business unique.
• Keep it clear and concise : Use straightforward language and support your points with data to ensure easy understanding and avoid any confusion.
• Set actionable and realistic goals : Define measurable objectives with clear timelines and milestones to track your progress.
• Update regularly : Keep your plan dynamic by making regular updates to reflect changes in goals, market conditions, and strategies.
• Seek feedback : Gain insights from mentors and advisors to refine your plan.

Read this next: How to Start a Business in 8 Steps: A Comprehensive Guide from Concept to Launch

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How to Develop a Business Growth Strategy

There are many ways to guide a business through a period of expansion..

Turning a small business into a big one is never easy. The statistics are grim. Research suggests that only one-tenth of 1 percent of companies will ever reach $250 million in annual revenue. An even more microscopic group, just 0.036 percent, will reach $1 billion in annual sales.

In other words, most businesses start small and stay there.

But if that's not good enough for you-;or if you recognize that staying small doesn't necessarily guarantee your business's survival-; there are examples of companies out there that have successfully made the transition from start-up to small business to fully-thriving large business.

That's the premise behind the search Keith McFarland, an entrepreneur and former Inc. 500 CEO, undertook in writing his book, The Breakthrough Company . "There has always been lots of books out there on how to run a big company," says McFarland, who now runs his own consulting business, McFarland Partners based in Salt Lake City. "But I couldn't find one about how to maintain fast-growth over the long-term. So I studied the companies who had done it to learn their lessons."

What follows are some of the lessons McFarland learned from his study of the breakthrough companies and how they can help you create a growth strategy of your own.

Developing a Growth Strategy: Intensive Growth

Part of getting from A to B, then, is to put together a growth strategy that, McFarland says, "brings you the most results from the least amount of risk and effort." Growth strategies resemble a kind of ladder, where lower-level rungs present less risk but maybe less quick-growth impact. The bottom line for small businesses, especially start-ups, is to focus on those strategies that are at the lowest rungs of the ladder and then gradually move your way up as needed. As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies. Each new rung brings more opportunities for fast growth, but also more risk. They are:

1. Market Penetration. The least risky growth strategy for any business is to simply sell more of its current product to its current customers-;a strategy perfected by large consumer goods companies, says McFarland. Think of how you might buy a six-pack of beverages, then a 12-pack, and then a case. "You can't even buy toilet paper in anything less that a 24-roll pack these days," McFarland jokes. Finding new ways for your customers to use your product-;like turning baking soda into a deodorizer for your refrigerator-;is another form of market penetration.

2. Market Development. The next rung up the ladder is to devise a way to sell more of your current product to an adjacent market-;offering your product or service to customers in another city or state, for example. McFarland points out that many of the great fast-growing companies of the past few decades relied on Market Development as their main growth strategy. For example, Express Personnel (now called Express Employment Professionals), a staffing business that began in Oklahoma City quickly opened offices around the country via a franchising model. Eventually, the company offered employment staffing services in some 588 different locations, and the company became the fifth-largest staffing business in the U.S.

3. Alternative Channels . This growth strategy involves pursuing customers in a different way such as, for example, selling your products online. When Apple added its retail division, it was also adopting an Alternative Channel strategy. Using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service, is another Alternative Channel strategy.

4. Product Development. A classic strategy, it involves developing new products to sell to your existing customers as well as to new ones. If you have a choice, you would ideally like to sell your new products to existing customers. That's because selling products to your existing customers is far less risky than "having to learn a new product and market at the same time," McFarland says.

5. New Products for New Customers.  Sometimes, market conditions dictate that you must create new products for new customers, as Polaris , the recreational vehicle manufacturer in Minneapolis found out. For years, the company produced only snowmobiles. Then, after several mild winters, the company was in dire straits. Fortunately, it developed a wildly-successful series of four-wheel all-terrain vehicles, opening up an entirely new market. Similarly, Apple pulled off this strategy when it introduced the iPod. What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered. McFarland says the iPhone has had a similar impact; once customers began to enjoy the look and feel of the product's interface, they opened themselves up to buying other Apple products.

If you choose to follow one of the Intensive Growth Strategies, you should ideally take only one step up the ladder at a time, since each step brings risk, uncertainty, and effort. The rub is that sometimes, the market forces you to take action as a means of self-preservation, as it did with Polaris. Sometimes, you have no choice but to take more risk, says McFarland.

Dig Deeper: New Product Development on the Cheap

Developing a Growth Strategy: Integrative Growth Strategies

If you've exhausted all steps along the Intensive Growth Strategy path, you can then consider growth through acquisition or Integrative Growth Strategies. The problem is that some 75 percent of all acquisitions fail to deliver on the value or efficiencies that were predicted for them. In some cases, a merger can end in total disaster, as in the case of the AOL-Time Warner deal. Nevertheless, there are three viable alternatives when it comes to an implementing an Integrative Growth Strategy. They are:

1. Horizontal. This growth strategy would involve buying a competing business or businesses. Employing such a strategy not only adds to your company's growth, it also eliminates another barrier standing in your way of future growth-;namely, a real or potential competitor. McFarland says that many of breakthrough companies such as Paychex , the payroll processing company, and Intuit , the maker of personal and small business tax and accounting software, acquired key competitors over the years as both a shortcut to product development and as a way to increase their share of the market.

2. Backward. A backward integrative growth strategy would involve buying one of your suppliers as a way to better control your supply chain. Doing so could help you to develop new products faster and potentially more cheaply. For instance, Fastenal , a company based in Winona, Minnesota that sells nuts and bolts (among other things), made the decision to acquire several tool and die makers as a way to introduce custom-part manufacturing capabilities to its larger clients.

3. Forward . Acquisitions can also be focused on buying component companies that are part of your distribution chain. For instance, if you were a garment manufacturer like Chicos , which is based in Fort Myers, Florida, you could begin buying up retail stores as a means to pushing your product at the expense of your competition.

Dig Deeper: Advice on Growth Through Acquisition

Developing a Growth Strategy: Diversification

Another category of growth strategies that was popular in the 1950s and 1960s and is used far less often today is something called diversification where you grow your company by buying another company that is completely unrelated to your business. Massive conglomerates such as General Electric are essentially holding companies for a diverse range of businesses based solely on their financial performance. That's how GE could have a nuclear power division, a railcar manufacturing division and a financial services division all under the letterhead of a single company. This kind of growth strategy tends to be fraught with risk and problems, says McFarland, and is rarely considered viable these days.

Dig Deeper: The Power of Diversification

Developing a Growth Strategy: How Will You Grow?

Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy in a single-minded way. Too often, companies take a year to develop a strategy and, by the time they're ready to implement it, the market has changed on them, says McFarland. That's why, when putting together a growth strategy, he advises companies to think in just 90 chunks, a process he calls Rapid Enterprise Design . Sometimes the best approach is to take it one rung at a time.

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How to Write a Market Analysis for a Business Plan?

Free Market Analysis Kit

• April 11, 2024

13 Min Read

Market analysis is the foundation upon which the success of your business relies.

Whether you are a seasoned entrepreneur planning to enter a new geographical market or an emerging startup struggling to place together your business plan—a thorough understanding of the market, customers, and competitors is essential for a business to thrive successfully. 

Now, writing a market analysis for your business plan is quite a challenge. But with this step-by-step guide, we have made the entire process quite simple and easy to follow. 

Also, get tips to write this section and our curated market analysis example for a business plan. 

Ready to dive in? Let’s get started.

What is Market Analysis?

Market analysis is a detailed analysis of your business’s target market and the competitive landscape within a specific industry. It is an important section of your business plan offering a thorough insight into the state of the industry, the potential target market, and your business’s competition.

A well-targeted market analysis forms the base upon which the foundation of your business relies. It assures the readers that you have a thorough understanding of the market you are about to enter.

Why should you Conduct Market Analysis?

Wondering how market analysis will contribute to the success of your business? Well, check these benefits of conducting a comprehensive market analysis for your business:

1. Reduces the risk

Instead of operating on instincts and gut feelings, market research enables you to make decisions based on data and analysis. When you know with surety what works and what doesn’t, you will make decisions that are more likely to succeed than fail.

To summarize, having an in-depth market analysis will reduce the risks associated with starting a business in a thriving marketplace.

2. Identifies emerging trends

A market analysis identifies emerging market trends and patterns and thereby helps you stay at the top of the competition. Not only the trends, but you can also identify challenges that may potentially arise in your business and design a pivot plan.

3. Assist in product development

A detailed analysis of the target market, industry, and competitors helps you create the product that the customer will be willing to buy. The analysis will not only assist in product development, but also with pricing, marketing, and sales strategies to ensure thriving business conditions.

4. Optimize your target market

Your business is not for everyone and the sooner you realize this the better. A target market analysis helps in understanding who your potential customers are and accordingly strategize your marketing efforts to attract them.

5. Establishes evaluation benchmarks

Market analysis benefits your business by offering evaluation metrics and KPIs. Such metrics help in measuring a company’s performance and its edge over the competitors.

Lastly, a thorough market analysis is quintessential if you are planning to secure funds. As a matter of fact, it is non-negotiable.

Now that you know how important having a market analysis section is, let’s learn a detailed way of conducting such analysis.

How to Simplify Your Market Analysis?

Market analysis is a broad concept covering a wide range of details. There’s no denying that it is a tiring task requiring extremely dedicated efforts.

From understanding the purpose of research to undertaking surveys, gathering data, and converting it into worthy analysis—the research itself is a lot for an individual to cover.

Upmetrics market analysis tool kit includes a variety of guidebooks and templates that will help you with target customer analysis , surveys, and competitor surveys.

The documents will guide you in a strategic direction to conduct qualitative research and analysis. They are well-crafted and quite simple to follow even for someone with no prior experience at market analysis.

Got it? No more side talking, let’s get straight to what you are here for.

How to Conduct a Market Analysis?

Conducting thorough market research and analysis could be a hassle, but not with this easy-to-follow 7-step guide. Let’s get over it.

1. Determine your objective

When you write a business plan , market analysis is going to be one prominent component.

However, it is important to know the clear objective of conducting such analysis before you kickstart.

For instance, are you planning to acquire funding from investors or are you conducting this research to test the viability of your business idea? Are you looking to add a new product segment to your business or are you looking to expand in other states and countries?

That being said, the purpose of your market analysis will determine the extent and scope of research essential for your business.

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2. Conduct an Industry Analysis

In this part of your analysis, you will highlight the state of the current industry and show where it seems to be moving. Investors would want to know if the industry is growing or declining, so present accordingly.

This section should include metrics for market size, projected growth, average market growth rate,  product life cycle, and market trends.

Ensure that you gather data from highly authoritative sites like the US Bureau of Labor Statistics (BLS), Bureau of Economic Analysis, and industry publications to make your analysis.

To make this section enriching and meaningful, begin with a macro industry overview and then drill down to your specific market and business offering as thorough details as possible.

3. Identify your target audience

This section of your market analysis is dedicated to your potential target customers.

And, although your product might be suitable for everyone, there is a high possibility that not all of them will be your customers due to many reasons.

It is therefore better to target a specific category of customers to grow your business effectively and efficiently.

Now, you can begin by creating a buyer’s persona of your ideal customer describing their demographic and psychographic details. This includes talking about the age, gender, location, income, occupation, needs, pain points, problems, and spending capacity of your target customer.

You can conduct surveys, interviews, and focus groups, and gather data from high-end sources to get essential details for a customer profile.

However, make sure that you dig into details to make this section resourceful for business planning and strategizing.

4. Analyze your competitors

Competitive analysis is the most important aspect of your market analysis highlighting the state of the competitive landscape, potential business competitors, and your competitive edge in the market.

Now, a business may have direct as well as indirect competitors. And while indirect competition won’t affect your business directly, it definitely would have an impact on your market share.

To begin this section, identify your top competitors and list them down.

Conduct a SWOT analysis of your top competitors and evaluate their strengths and weaknesses against your business.

Identify their USPs, study their market strategies, understand how they pose a threat to your business, and ideate strategies to leverage their weaknesses.

Don’t undervalue or overestimate your competitors. Instead, focus on offering a realistic state of competition to the readers.

Additionally, readers also want to know your strengths and how you will leverage a competitive edge over your competitors. Ensure that this section highlights your edge in terms of pricing, product, market share, target customer, or anything else.

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5. Calculate your market share

The analysis section of your business plan must also include details of your market share.

If your estimated market share is not big enough, chances are your business idea might not be profitable enough to pursue further.

Now, you can use these proven metrics to forecast your market share:

TAM (Total available market)

It represents the total demand available in the market. In other words, it is the maximum amount of sales or revenue the market has to offer.

SAM (Serviceable available market)

It represents the segment of TAM that you can obtain with your solution within your limitations. These limitations can be geographical location, business model, type of product, etc.

SOM (Serviceable obtainable market)

It represents the segment of SAM that you can realistically capture after considering your competitors, customer preferences, production capabilities, etc.

SOM is your estimated market share. Once you have calculated it, you can actualize it via suitable pricing strategies.

Apart from this method, you can also use other approaches like top-down, bottom-up, and triangulation to estimate your market share.

However, whatever method you use, ensure that the projections are realistic and attainable.

6. Know the regulations and restrictions

Before entering a new market or starting a new business , you need to know the regulations and restrictions in your industry.

Understanding these can help you stay out of legal pitfalls and inspire confidence in prospective investors.

Some of the regulations you need to know are:

• Government policies
• Tax regulations
• Trade policies
• Employment laws
• Environmental regulations
• Security and privacy
• Protection of intellectual properties

Include these details in your market analysis section to help readers understand the risk value and federal regulations associated with your business.

7. Organize and implement the data

After completing your research, it’s now time to make sense of all the data you’ve gathered.

There is no strict structure when it comes to organizing your market analysis. However, ensure that your analysis includes specific sections for objective, target market, and competition.

Focus on creating an easy-to-digest and visually appealing analysis section to help the readers gather essential essence.

Now, it’s a waste if you are not putting all this research to some use. Identify the business areas where you can implement your research be it product development, exploring the new market, or business operations, and develop strategies accordingly.

All in all lay the foundation of a successful business with a thorough and insightful market analysis. And, you can do it by having an organized market analysis section in your business plan.

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Tips to Write Your Market Analysis

After conducting thorough market research, it is important to present that information strategically in a business plan to help the readers get meaningful insights.

Well, here are a few tips to help you write the market analysis for a business plan.

1. Stay in context

Remember the objective of your market analysis and stick to it. Keeping the context in mind, identify what essential information to present and back them up with high-end sources.

Also, tie your data with essential analysis to show how your business would survive and thrive in the market.

2. Add visual graphics

No one prefers shifting through pages of pure text content. Graphics and visuals make your market analysis easy to absorb and understand. You are more likely to capture readers with visual attractiveness rather than risk their attention with pure textual content.

3. Offer an engaging summary

Offer readers a quick overview of your detailed market analysis by including a summarizing text. A summary will help readers gather a macro perspective before diving deep into hard facts and figures.

4. Avoid fluff and repetition

Ensure that everything you present in your market analysis section holds a meaning. Avoid adding inessential and fluff information.

To best identify whether or not the information is essential for the reader, ask this simple question: Will the reader learn something about my business’s market or its customers from this information?

If not, the information is most likely inessential. And, those were some quick tips to ensure effective market analysis for your business plan.

Market Analysis in a Business Plan Example

Before we conclude, check out this market analysis example from Upmetrics’ sample yoga studio business plan.

Business Name: Lotus Harmony

Location: Green Valley

Core Objective for Market Analysis

Our goal for the market analysis at Lotus Harmony is straightforward: to deeply understand what the Green Valley community seeks in yoga and wellness. We’ll closely look at local demand and the competitive scene, shaping our services to precisely meet community needs. This approach promises to make Lotus Harmony a distinct and beloved wellness destination in our neighborhood.

Industry Overview of the Green Valley Yoga Market

Market Size:

Green Valley is home to nearly 1M yoga enthusiasts, predominantly aged 25-45. This demographic suggests a robust market for yoga and wellness, ripe for a studio that offers diverse and inclusive programs.

Projected Growth:

The yoga community is expected to grow by 5% annually over the next five years. This growth is driven by an increasing interest in holistic health, presenting a fertile ground for a new yoga studio to thrive.

Market Trends:

A rising trend is the demand for comprehensive wellness services, including mindfulness and nutrition, alongside traditional yoga. Specialized classes like prenatal yoga are also gaining popularity, signaling opportunities for niche offerings.

By tapping into these insights, a new yoga studio in Green Valley can strategically position itself as a premier wellness destination, catering to the evolving needs of the community.

Target Market Analysis for Lotus Harmony

Lotus Harmony Yoga Studio’s ideal customers are mainly Urban Millennials and Gen Z (ages 18-35) who prioritize:

• Wellness and mindfulness as part of their lifestyle.
• Affordable, holistic health experiences blending physical and mental well-being.
• Convenience with flexible class schedules and online access.
• Community and sustainability, preferring spaces that offer personal growth and eco-consciousness.
• A welcoming atmosphere that supports inclusivity and connection.

Competitive Landscape for Lotus Harmony

Lotus Harmony’s success relies on understanding consumer preferences and income, securing prime locations, attracting patrons, and offering quality services. Competing with gyms, wellness centers, and home fitness, it positions itself as a holistic wellness choice, aiming to stand out in Green Valley’s wellness scene.

Market Share for Lotus Harmony

Regulatory Requirements for Lotus Harmony

Here are a few aspects of legal compliance essential for Lotus Harmony:

• Business Registration and Licensing
• Zoning and Land Use Permits
• Health and Safety Compliance
• Professional Liability Insurance
• Instructor Certifications
• Building Safety Certificates
• Accessibility Compliance
• Tax Registration

Final Thoughts

It takes an extremely dedicated effort to undertake market research and craft it into a compelling analysis. However, it’s a worthy business planning effort that will set a cornerstone of success for your business.

Don’t worry. You don’t need to spend days figuring out what and how to write your market analysis. Upmetrics, an AI-powered business planning app , will help you write your overall business plan in less than an hour.

Build your Business Plan Faster

with step-by-step Guidance & AI Assistance.

Frequently Asked Questions

What are the 4 c's of marketing analysis.

The 4 C’s of marketing analysis are customer, cost, convenience, and communication which would together determine whether the company would succeed or fail in the long run.

Is SWOT analysis a market analysis?

SWOT analysis is a small but important tool for market research that would determine the success of a business or its edge over other businesses based on strengths, weaknesses, opportunities, and threats.

How long does a market analysis take?

Market analysis can take anywhere from 4 to 8 weeks, given that secondary sources of data are easily available. However, for complex large-scale projects, analysis can take up to months to complete.

What are the three core components of a market analysis?

The three most crucial components of a market analysis are the study of market size and market share, target market determination, and competitor analysis.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

Reach Your Goals with Accurate Planning

How to Create a SaaS Go-To-Market Strategy (2024)

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Your Software-as-a-Service (SaaS) product launch’s success depends on an effective go-to-market (GTM) strategy. 

Good GTM strategies are key to building and launching better products to the right customers at the right time and standing out from the competition already existing in the market. This helps reduce the chances of startup failure at the get-go.

According to a Harvard Business School study , although 30,000 new products are launched each year, 95% of them fail, and 92% of startups fold in their first three years of operation. 

This is attributed to introducing products or other solutions where there is no real need for them. Startups find that there is no real market for the solutions they’ve come up with.

You can prevent this from happening to your business with a solid SaaS go-to-market strategy .

Whether you’re launching a new product into an existing market or expanding to new customers in emerging markets, your GTM strategy helps you validate your product or service idea early on before you invest more resources in it.

By validating your product idea ahead of time in the game, you save precious time, money, and other resources moving forward. You ensure that you’re moving in the right direction before you invest more of your resources into it.

What is a GTM strategy in SaaS?

Your SaaS go-to-market (GTM) strategy is the roadmap for how you’ll take your product to market. It lays the foundation for a successful product launch and business going forward.

It’s a comprehensive guide on how to send your product or service to the market—hence the term “go to market.”

It is a detailed, step-by-step plan for how you’re going to use your company’s resources to deliver your unique value proposition (USP) to your customers, giving you a competitive advantage in your target market. 

A good go-to-market strategy in software helps you launch your product or service to the right audience with the right messaging at the right time.

An effective GTM strategy includes a clear identification of your target market, your positioning and selling strategy (product-led growth, sales-led growth, or hybrid?), pricing model, marketing distribution channels, and more.

You need to clearly answer the 5Ws and 1H:

• Who is your target audience?
• Where are they?
• What product or service are you offering them?
• Why are you offering it to them (brand positioning)?
• When will you get it to them?
• How will you get it to them (marketing and sales plan)?

SaaS GTM vs. Marketing Plan: What’s the Difference?

Although a SaaS go-to-market strategy, as described, sounds like a marketing plan, the key differences are in the plans’ time coverage and product focus.

A SaaS go-to-market strategy is a one-time plan to help you break into your target market as you launch your product or service. 

A marketing plan is an ongoing and evolving plan, extending beyond the initial product launch. It involves continuous marketing efforts to acquire more customers and grow your market share.

A SaaS go-to-market strategy also focuses only on a single product or service to launch. 

A marketing plan focuses on the brand’s main value proposition and how this is translated into the marketing of its products and services.

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SaaS Go-To-Market Strategy: 3 Key Benefits

There are many benefits to coming up with a SaaS go-to-market strategy, but the three most important are that they help you:

1. Map out all significant touchpoints

With a SaaS go-to-market strategy, you get to not only identify but also clarify:

• Who your potential customers are 
• What their pain points are
• How your offering can address these pain points
• Who your existing competitors are  
• How are they not addressing your customers’ pain points well enough?

So, you can craft the effective marketing strategies that you will employ to gain a competitive advantage over them.

In the process of identifying your potential customers’ pain points, you will also need to identify their customer touchpoints . 

What are customer touchpoints?

Customer touchpoints are the important interactions that happen between your brand and them along their customer’s journey. 

Typically, customer touchpoints before a purchase involve social media, online ads, digital marketing content, peer referrals, and company events.

Customer touchpoints during a purchase involve conversations with company representatives, product catalogs, your ecommerce website, product reviews, and the point of sale.

Touchpoints after a purchase typically involve thank-you letters or emails, product feedback surveys, upselling and cross-selling emails, billing actions, and subscription renewals.

Customer touchpoints in customer service involve customer support channels, customer success programs, customer onboarding, customer loyalty programs, and self-service resources.

When you list and then group these touchpoints chronologically, you will gain a complete picture of an average customer experience with your business.

When you see this big picture, it will help you develop the strategies that will best speak to your target customers and move them along their customer journey with you.

2. Addresses product-market fit early on

A good SaaS go-to-market strategy ensures that your product fits the target users’ needs, so the issue of product-market fit is solved early on.

The study shows that 95% of new product launches fail, and top brands such as Google, Coca-Cola, and Colgate were part of this statistic. 

The Google Glass project received millions of dollars of investment but quickly disappeared from the scene. Google Glass is a wearable, voice- and motion-controlled Android device that resembles a pair of eyeglasses and displays information directly in the user’s field of vision. The product was launched in 2014 but pulled from the market in 2015.

New Coke, using high-fructose corn syrup instead of regular sugar, was launched in 1985. It was renamed Coke II in 1990 and discontinued in 2002.

The oral hygiene giant Colgate introduced Colgate Kitchen Entrees, a series of precooked meals, in 1982. It apparently didn’t delight people’s tastebuds and was eventually brushed aside, pun intended.

These large companies can obviously take on the costs of product launch failures, but startups can’t.

MIT professor Svafa Gronfeldt explains why only 5% of new products survive: “Many organizations don’t take their customers’ needs into account when launching their products. Without putting themselves in their (customers’) shoes, it’s often too late when they realize there’s no market for their solutions.” 

Go-to-market strategies are useful not only for product launches but also for long sales cycles. They not only help you attain product-market fit but also set a solid foundation for future product operations.

3. Determine customer acquisition cost and the most suitable strategy ahead of time.

Developing a good SaaS go-to-market strategy helps you determine the customer acquisition cost, which can then be the basis for choosing the most suitable strategy for your product.

Instead of following the marketing tactics that your competing SaaS companies predominantly use, such as huge discounts, which may not be appropriate for your product, you can make better-informed strategic decisions that won’t cost you more money than necessary.

What are the 5 Go-To-Market strategies?

You can consider this the condensed version of a SaaS GTM playbook. The five pillars of a successful SaaS go-to-market strategy are:

1. Product analysis

Most startups have products in an evolutionary, constantly evolving state. This means that new ideas, responses to the market, and key accounts can put the product’s value proposition in a continuing state of flux.

So, a critical first step is to understand the current state of your product. 

What is the market potential for it now, compared with what the product team plans for it in their roadmap?

Plan for the time and capital expenses required to take the product to its intended state. This will likely limit your resources and marketing strategy, but this sober assessment is necessary to align your team’s expectations.

Carefully look at your target users. Create valid customer personas to guide your GTM strategy. 

Is your market well-defined? Have you clearly described the value you will provide the target user?

As your product evolves, the market definition and user value will shift. Ensure that your answers to these questions remain valid. This is key to a successful GTM strategy.

2. Product messaging

Product messaging starts with your basic product position statement. It ensures that you are communicating your product’s core objectives clearly.

A typical product positioning format looks something like this:

(Product name ) is a ( product class ) for ( target market ) that ( product purpose ). Unlike the ( main competitor ), ( product name ) has ( unique features ).

Before you can even craft your simple-looking product positioning statement, you will need to carefully evaluate your competition. You will also need to see how your buyers and users are different. 

From this assessment, you will be able to develop good customer personas that will help you see how your buyers and users perceive your product and how they make decisions.

You will also need to consider your product’s value. Put yourself in your target client’s place.

What is the business case your buyer will make to capture a budget commitment from their company for your product? What is your product objectively worth to them? How do you define and defend the worth of your product?

3. Sales proposition

You need to consider how your messaging is delivered at different stages of the sales cycle, especially if your business engages in direct sales.

Early-stage messaging emphasizes the business case. Case studies and white papers can be helpful sales collateral in this early stage of the sales cycle.

At mid-stage , messaging focuses on how your product compares to the competition. A classic example is using the competitive product matrix . It’s a way of checking out your competition by identifying your competitors and laying out their products, sales, and marketing strategies in a visual format.

By doing this, you will learn where you are currently positioned in the market, how to differentiate yourself from your competition, and how to improve your processes so you can get ahead of them in the market.

Late-stage messaging turns the focus away from the product to the business relationship. A good example is the use of testimonials on the value of your after-sales support.

When you evaluate your current sales proposition, take some time to audit your existing or targeted strategic client accounts. 

Does your value proposition align with their needs? How are the account expectations being managed currently? What quarterly milestones did the team set for these accounts, and how are they tracking their progress against those milestones?

You will also need to consider your pricing. 

How clearly do you define the variation between your product’s price and its value to your target customer? How does your pricing line up with the competition? Does this factor significantly impact your buyer’s purchase decision process? 

For example, if you choose a premium pricing structure for your product, make sure that your sales proposition supports it.

4. Marketing strategy

If you’ve developed valid buyer and user personas, you can then craft targeted audiences and a plan to reach them with the right marketing and advertising campaigns.

Consider age, geography, income, position/title, affiliations, and online behavior as starting factors to create campaign audiences to test. 

What’s good about digital marketing is that you can test targeting audiences with unique messaging, images, and creatives that initiate the call to action (CTA) across a number of advertising channels.

When done right, you can achieve effective test results even on a limited budget. For example, you can test a full set of messages on Facebook audiences with budgets as low as only $20 a day, running around 15 ad sets for 7 days.

The best digital marketing strategy is agile, with sprints continually testing channels, ad creatives, and targeting. Start with small budgets as you tweak your ads and copies until you dial in an optimized conversion rate.

This also ensures that your analytics capture attribution, which lets you capture the lifetime value of a customer who can be credited to the campaign.

Score your outcomes accurately. This enables you to direct how and where to expand your digital marketing budget.

Later, when you move to less agile advertising channels, you will benefit from your tested ad messaging and key performance indicators (KPIs).

5. Sales strategy

Begin by evaluating your current sales pipeline. 

Does it reflect your current sales potential? Can pipeline reporting be relied upon to accurately predict future revenue?

Then, define your partner strategy. 

What products complement yours? What products will most probably be purchased before or after yours? What advantages can be gained from joint marketing with these other product providers?

A channel partner strategy considers how and when other products might add unique value when selling your products. This is classic business development, which is the art of getting others to sell on your behalf.

Two SaaS go-to-market strategies are often considered in sales strategizing: product-led or sales-led.

A product-led go-to-market strategy uses the product as the main channel for customer acquisition, conversion, retention, and expansion. 

Everything is self-service. 

A product-led go-to-market strategy depends on organic product growth, backed by an exploratory model and a seamless user experience in setting up and using the product. 

Often, the product has self-serve features, and the strategy uses freemium offers and trial-to-buy offers.

Typically, customers sign up for a free trial, upgrade to a premium plan, or cancel their subscription without communicating with sales instantly.

Brands spend more on marketing than on sales with a product-led GTM strategy. This allows for a broader net cast and lower customer acquisition costs (CAC). 

A good example is Ahrefs, with over $50 million in annual recurring revenue and more than 3,200 new leads every week, even with zero salespeople.

Product-led strategies are best for shorter sales cycles, catering to small and medium businesses (SMBs).

A lot of SaaS companies, such as Dropbox and Slack, use this product-led strategy. It is based on building a value-filled product experience for customers that encourages them to keep using the product.

On the other hand, a sales-led go-to-market strategy involves the prospect interacting with a company sales representative at every stage of their buying journey. 

It depends heavily on your sales team and channel partners. Your sales team will connect with clients, build relationships, explain product benefits to potential customers, and take them through the contractual process. 

Business-to-business (B2B) products that require long contract cycles and significant time to position and onboard often require a sales-led approach. 

This implies more investment in sales resources. You will need to invest in the recruitment hiring, and training of your sales team, as well as equipping them with the necessary sales collaterals.

Clients are typically enterprise-scale, requiring your investment in qualification meetings, demos, overcoming customer objections, negotiations, and other complex requirements.

Companies whose products require more high-level guidance with a longer sales cycle use the sales-led strategy.

The key point to remember is that it’s not an either-or choice when it comes to product-led or sales-led strategies. You must choose what’s best for your situation. 

You must identify where the change point is so you know when to shift from one to the other. 

You can also use these two go-to-market strategies in tandem if this approach applies to your business situation.

How Do You Create a SaaS Go-To-Market Strategy?

We now come to how, specifically, you create a SaaS go-to-market strategy. 

There is no standard GTM template, but a basic strategy would involve the following steps:

1. Identify the right audience.

This first step is crucial. It determines whether you can address the product-market fit challenge or not.

Identifying the right buyer and user personas or target audience will determine the rest of your SaaS go-to-market strategy.

Who will benefit most from your product? What pain points of theirs will your product solve? Who will you target first when you launch it? How will you reach them?

In thinking about your target audience, especially when you’re in B2B, you need to consider that you will probably have a different persona for the buyer, the decision-maker, and the actual user of your product. You might also need to consider the influencers and gatekeepers around them.

Start by creating a 3-column Value Matrix table with the following labels for each column: Pain Points, Product Value, Main Message. On the left side of the table, label the beginning of each row with your identified target personas: User, Buyer, Decision-maker, Influencer, Gatekeeper.

Then, put yourself in each of the persona’s shoes and list down what you feel would be their answers to Pain Points. Once you’ve exhausted this column, you can then list down the Product Value and Main Message ideas you have to address each of their pain points.

Here’s a sample Value Matrix table to illustrate how this looks:

2. Create the value proposition and key messaging.

If you’ve accomplished your Value Matrix thoroughly and in detail, you will then have an idea of what your core value proposition and key messaging would be.

Your core value proposition highlights key target persona problems and positions your product as the best solution for them.

It’s helpful to use the recommended format to further clarify your product value proposition and key messaging:

(Product name ) is a ( product class ) for ( target market ) that ( product purpose ). Unlike ( main competitor ), ( product name ) has ( unique features ).

3. Decide on a sales strategy.

Will you employ a product-led, a sales-led, or a hybrid go-to-market strategy? It depends on what is appropriate for your product, your market, and your industry.

In a product-led strategy, your product is the focus of all marketing and sales efforts. It’s best to use this if your product is simple to use, has a potential for virality, and has self-serve features.

A sales-led strategy largely depends on a well-informed and proactive sales force. It works best for enterprise companies whose products are complex, have a long sales cycle, and require high-level guidance from their sales teams. 

4. Choose your pricing strategy.

Your pricing strategy depends on your decision on how you will sell your product to the target market, given what you know now about their personas and pain points.

Generally, SaaS companies use any or a combination of the following sale and pricing models:

This works best for B2B products that may need a longer period to understand and get value from. 

Entice new users with a free plan that has limited features to give them time to explore the product, experience its value, and increase the chances of their upgrading to a paid plan.

This is the simplest approach to selling SaaS. It’s focused and easy to communicate with prospective customers. 

This works best if you offer a simple product with limited features or a consumer-focused subscription product.

It involves offering your product and all its features at a fixed rate each month. Everyone gets everything at one price. Customers can choose to pay monthly or annually.

Pay-as-you-go

Infrastructure software companies often use this pricing model. It involves charging the users based on how much they use your product. The more they use it, the higher they pay for it. 

It’s also known as usage-based or consumption-based pricing. Since it has lower upfront costs for users, it can attract more users even as you learn more about them when they use your product. 

Revenue can grow fast, but it can also be unpredictable and difficult to forecast since you don’t know how much each customer will pay per month or per year.

Pricing per feature

What features and how many of them users need and use determine the users’ subscriptions. Users consider it fair pricing, as they pay only for what they’ll use. 

Typically, this involves creating different packages and listing all the features in each package. This pricing model offers clear package differences and helps in upselling.

This pricing strategy lets you target different types of customers with a plan for everyone. It involves using different packages with various features and prices to attract customers.

It’s easy to upsell with tiered pricing, and it maximizes revenues. However, it needs deep audience research and risks overwhelming potential customers with too many options.

Tiered pricing is best if your business sells licenses, seats, or similar products.

This pricing model involves charging your customers based on how many users will be using the product. They can choose a plan most suited to their company size and change it if their size increases or decreases.

User-based pricing has lower barriers to entry and can easily attract new clients as the price is not the main deciding factor. It is also transparent and customizable. However, your growth depends largely on customers, and revenue is unpredictable.

This pricing model is best if you have volatile demand patterns.

5. Choose a marketing distribution strategy.

How do you plan to reach your target audience? How will you create brand awareness, attract potential buyers, and drive demand? Which marketing channels would be most effective for reaching and converting them?

Your answers to these questions and more should be mapped out in detail in your marketing distribution strategy.

The top marketing channels for SaaS companies are search engine optimization (SEO), social media, content marketing, referral marketing programs, SaaS review sites, video marketing, targeted pay-per-click (PPC) campaigns, email marketing, free trials, and live demos.

6. Determine a customer experience strategy and customer funnel.

Especially if you decide on a product-led strategy, you’ll also need to craft a customer experience strategy.

This strategy maps out their customer journey with you, identifying the touchpoints with your brand and how you will delight customers at every step of the way. 

When your customers experience smooth and pleasant interactions with your products, they are more likely to convert to paying customers.

This is also helpful for a sales-led strategy.

7. Decide on the right metrics to track.

Sales-led growth metrics focus on customer efficiency, while product-led growth metrics focus on product usage and feedback.

Essential sales-led going-to-market strategy metrics are: 

• Monthly Recurring Revenue (MRR) : the predictable monthly revenue
• Customer Acquisition Cost (CAC) : total expenses incurred in acquiring a new customer
• Customer Lifetime Value (CLV) : total revenue a customer is expected to generate during their entire relationship with your business
• Sales Conversion Rate : percentage of prospects converted into paying customers
• Average Deal Size : average revenue amount per customer transaction
• Sales Velocity : the rate at which deals are closed, integrating deal size
• Churn Rate : the rate at which customers end their relationship with your business

Foundational product-led growth metrics are:

• Activation Rate : percentage of active product adopters
• User Engagement : user interaction depth and frequency with your product
• Retention Rate : continuity of product usage or subscriptions over time
• Conversion Rate : percentage of users converting to paid versions
• Net Promoter Score (NPR) : a score indicating the likelihood of users recommending the product
• Time to Value : time taken for users to feel the product’s benefits

Even at this early stage of planning your go-to-market strategy, you should already focus on setting the proper metrics because they will determine how successful or unsuccessful your GTM implementation will be.

The CLV: CAC ratio is recommended to make sure you don’t start running losses by spending more on acquisitions before you gain.

Successful SaaS Go-To-Market Strategy: 3 Examples

Here, we show you successful GTM strategy examples covering both business-to-consumer (B2C) and B2B SaaS go-to-market strategies. 

They include Asana, Dropbox, and Slack.

Asana: Core Brand Messaging

Founded in 2008 by Facebook’s co-founder and president of engineering Justin Rosenstein and his Facebook colleague Dustin Moskovitz, Asana is a SaaS web and mobile “work management platform designed to help teams organize, track, and manage their work.” 

The founders left Facebook to build Asana after they saw how an internal work productivity tool, Task, that they built at Facebook was broadly adopted and how powerfully it impacted their internal work systems.

Asana’s go-to-market success is largely attributed to its clarity about what it seeks to do and how this is reflected in its core brand messaging and performance. It showed that its product is easy to use and easy to scale.

Asana aims to enable teams to work together and reach their goals at scale. It correctly identified a prevalent market pain point among individuals and organizations: people spend too much time on work about coordinating their work instead of actual productive work. 

So, Asana offers a work management platform that provides a seamless structure to unstructured work. Its Work Graph combines tasks, projects, portfolios, goals, and the relationships among these. 

Asana follows a hybrid go-to-market strategy, combining a product-led self-service strategy through its basic free service with a sales-led direct sales strategy to convert those free accounts into company-wide accounts.

Asana’s strategy follows a subscription-revenue model. It starts with a free basic plan that fills its marketing funnel with leads. The direct sales teams then process these leads, turning them into enterprise accounts.

Dropbox: Going Viral

Dropbox, a file host-sharing service that grew to $1 billion in revenue in only 10 years , is considered the poster child of a product-led growth (PLG) go-to-market strategy.

Traditionally, most SaaS companies use a top-down approach to SaaS growth by employing a sales-led go-to-market strategy. They would build a product and employ a sales team to directly sell the product to companies.

PLG is a bottom-up approach where you enable people to discover and adopt your product on their own. There are three key markers to indicate that a product or service is ripe for a PLG strategy: simplicity, virality, and a self-serve channel.

Dropbox possesses these three markers. 

It’s simple enough that a user can not only understand it and how it works but also be able to make a purchase decision independently of a salesperson. 

It has virality potential because it requires sharing to get the full value of the product. Since Dropbox is designed to facilitate collaboration with other individuals and groups, it can automatically create additional users by frequently exposing new people to the product.

It has self-serve features, which became a channel for prospects to discover and use their product without needing help from a company representative to support them.

Dropbox’s PLG approach was straightforward. It started with a good product-market fit. It solved an existing market problem with a product that has a very user-friendly user interface (UI). 

Instead of having to use burdensome file transfer protocols (FTPs) or local file servers to store and share files for collaborations, users could use the Dropbox drag-and-drop feature, which allowed instant access from any computer on the web.

Its go-to-market strategy used a one-two approach. 

In the beginning, it focused almost entirely on growing its user base rather than on monetization. Then, it introduced features designed to take advantage of the viral factor: shared folders, a referral program, and shared links.

Basically, Dropbox focuses on solving a problem for users and then making it easy for these users to share their solutions with others.

Slack: Self-Service and Word-of-Mouth

When Slack was launched in 2013, the team communication app space that we know now did not yet exist. Teams communicated via email or switched between different apps to talk over chat, email, call, and video call. 

There was no app yet for efficient, effortless communication that helped people communicate effectively with less time and effort.

The team started working on polishing Slack in 2012 and used it internally by March 2013. They also asked their friends in other companies in the Silicon Valley area to test out their products and give them feedback. 

Slack’s early distribution happened through this informal network of early testers.

They used the feedback to improve Slack. Early on, they learned that their product worked differently depending on team sizes. So, they progressively increased the team size capacity and observed how the product worked as they added new features. 

They kept on iterating until they had the best features that worked well for different team sizes.

Once the product worked well enough for large teams, they rolled out their preview release for beta testing. Immediately, 8,000 people signed up in one day. In two weeks, they had 15,000 active users.

The increased number of users meant more feedback and iteration for Slack. This is how Slack’s “word-of-mouth” engine started running among Silicon Valley users.

As they kept iterating the initial product, Slack evolved into a workspace with different users talking one-to-one and on different channels. 

As it evolved, Slack’s team narrowed down Slack’s core features to three: Search, Synchronization, and Sharing (file).

They officially launched Slack in February 2014, replicating the original word-of-mouth strategy at scale via Twitter. They chose Twitter because most professionals chose to hang out on Twitter and directly contribute to discussions on the app. It also had a potential virality factor.

Slack’s team created the Twitter Wall of Love, which quickly exploded, receiving up to 10,000 tweets in a month.

From a zero valuation at its official launch, Slack reached a billion-dollar valuation in just eight months. In 2021, it made $902 million in revenue. Its customer base now includes 80% of Fortune 500 companies , including IBM, Oracle, Razorpay, Time, and Uber.

Slack’s product-led go-to-market “word-of-mouth” strategy fundamentally involves the following tactics:

• Get every relevant user to try the product.
• Take all feedback seriously and learn from it.
• Use the feedback to keep iterating on product improvement until all the loopholes are fixed.
• Make sure users bring in more users.
• Make your product so indispensable that users have no other choice but to buy the paid version.

This is how Slack built its $27 billion company with almost no “marketing.”

GTM Strategy Execution

It helps to have a great product, but as you’ve seen in the Harvard study conducted, it is not enough. Ultimately, your success depends on your ability to effectively execute your SaaS go-to-market strategy.

Building a solid GTM plan gives you the framework you need. If you have the right people working with you, collaborating, challenging your assumptions, and providing encouragement, and your GTM strategies integrate the five pillars, you can avoid many costly mistakes. 

Your solid SaaS go-to-market strategy helps set your team’s expectations realistically and takes out the need for guesswork and unfounded assumptions. It will keep your resources focused and help you execute your strategy with the greatest potential for success. *

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Money blog: 'We have never seen such a spike': Popular coffee brand issues price warning

Welcome to the Money blog, your place for personal finance and consumer news and tips. Leave a comment or your Money Problem/consumer dispute (don't forget to leave a contact number/email) in the box below.

Thursday 11 July 2024 06:07, UK

• 'We have never seen such a spike': Popular coffee brand issues price warning
• Major four-day week trial being launched
• UK companies with best customer service revealed

Essential reads

• We asked beauty experts for their top dupes to give you a summer glow - without breaking the bank
• Michelin chef reveals £2 supermarket pasta that can elevate your dinners - as he picks his Cheap Eats in London
• Basically... What are the different ways of paying for a car?
• Women in Business : From blackouts to CEO - how burnout helped create UK's biggest venue booking platform
• Best deals on school uniform ahead of new academic year
• Further reading: Ian King answers your questions on what Labour government means for your personal finances

Ask a question or make a comment

Germany's property industry is headed for a "bitter" crisis, the country's largest landlord has warned. 

Higher interest rates have been hammering the property sector in Europe's largest economy, and could see several companies go bust in the near future, it is claimed.

Rolf Buch, chief executive of Vonovia, warned the country is "going to see an extreme number of bankruptcies over the next few months, maybe over the next few years". 

"We're already seeing them today. It is going to be bitter," he said. 

Meanwhile, renters are facing fierce competition for flats and Mr Buch said the market for these is "going to get worse". 

The sector had previously seen a boom due to low interest rates and a strong economy, but this changed when rising inflation forced the European Central Bank to swiftly raise borrowing costs. 

The industry is now calling on the German government to intervene.

The ECB cut its main deposit rate from 4% to 3.75% last month but bank president Christine Lagarde has indicated that benign economic developments mean further interest rate cuts are not urgent, with a robust labour market and resilient wage growth.

For Savings Guide this week, Savings Champion research and development manager  Daniel Darragh gives us the lowdown on the best notice accounts on the market right now... 

Notice accounts have seen a rally in recent times, with rates on the rise.

Some of these accounts are offering some of the highest rates outside of regular savings accounts. OakNorth's 95-Day Base Rate Tracker, paying 5.37% AER, and Vanquis's 90 and 60-Day accounts, paying 5.35% and 5.30% AER respectively, even beat any fixed-rate term accounts currently available.

A relatively unloved and often overlooked area of the savings market, notice accounts tend to offer higher rates than easy access accounts due to their restrictions on access, but they have greater flexibility of access than a fixed-term bond.

As the name suggests, notice accounts require you to give notice to access your money without a penalty. Usual notice periods range from 30 to 120 days, although there are some accounts on the market that require six months or even a year's notice. 

While you need to give the required notice to access your cash on the majority of notice accounts, some will allow immediate access with a penalty equivalent to the notice period - although this is now less common. This penalty can be taken from the capital if insufficient interest has built up prior to access, so it's important to plan carefully as you could end up with less money than you put in.

It's also important to note that unlike fixed-rate bonds, notice accounts pay a variable rate of interest so are subject to fluctuations in rates over time. This is particularly pertinent given the speculation that the Bank of England is considering cutting interest rates in the coming months, which may well be passed onto savers in variable rate accounts by the underlying provider.

In the case of notice accounts, when rates decrease, the amount of notice given to customers varies from provider to provider. Some providers will give customers the full notice period, plus x number of days, before any rate reductions take effect – in essence, allowing clients to give notice and withdraw their funds from the account before the new, lower rate takes effect. 

Other providers may only give a set amount of days, less than the notice period itself, which means that, even if you were to give notice on the day you were informed of the rate drop, your money would be subject to the lower rate for at least part of the notice period. As there is no hard and fast rule on this, it is important to check the terms and conditions of the account so you know what situation you will be in if or when rates start to fall.

For some people, not being able to access their money immediately is important to help them to resist dipping into their savings and it could also be a good way of getting a higher return on money that you know you will not need straight away – so could be a serious consideration for many cash savers.

The Danish capital might not be what comes to mind when you think of a cheap holiday - but if you're willing to help the community, you can earn yourself freebies and discounts. 

Under a new scheme being trialled, visitors to Copenhagen can claim anything from a free lunch or glass or wine to a free kayak rental. 

They can earn these freebies by completing tasks such as litter picking, travelling by public transport, cycling or volunteering in an urban garden. 

The CopenPay scheme is being trialled from 15 July until 11 August. 

Twenty-four attractions in the city are signed up to take part, including the Museum of Copenhagen - where you can claim a free coffee if you've walked there, travelled by bike or used public transport. 

On certain dates, you can earn a free one-hour GoBoat cruise around the city, or a 45-minute free bike ride with Donkey Republic. 

Officials have said if the trial is deemed a success, CopenPay could be rolled out throughout the year.

Yesterday it was the cost of tea that was on the rise, now it seems coffee isn't safe from imminent price hikes either... 

Caffeine lovers have been warned that the price of a cup of coffee could keep increasing for at least another year. 

Industry giant Lavazza said "very challenging headwinds" meant UK prices will not drop until the middle of 2025 at the earliest.

Poor harvests in Brazil and Vietnam, geopolitical conflict and supply chain disruption have all contributed to costs reaching record levels, said the group's chairman, Giuseppe Lavazza.

On Monday, prices reached an all-time high of £3,356 a tonne.

"We have never seen such a spike in price as the trend right now," said Mr Lavazza.

For consumers, this has meant the price of a 1kg bag of beans has already risen by 15% in a year. 

Mr Lavazza said this could increase by 20% to 25% over the next 12 months.

Meanwhile, a flat white at the firm's flagship cafe in London now costs £3.50 to take away or £5.50 to have in.

"We have faced very, very strong headwinds. I don't see any reason why coffee prices will go down," Mr Lavazza added. 

The UK retail coffee market is worth £1.3bn, growing by 3.9% year-on-year and driven by price inflation of 3.8%, according to Nielsen figures. 

Yesterday, the Indian Tea Board warned average tea prices could rise by up to 20% after extreme weather caused poor harvests. 

In the last week of June, the typical price of Indian tea leaves rose to more than £2 per kg, it said. 

You can read more about that here ... 

The UK's biggest supermarket chain has told customers its Express stores across England will close at 7.30pm instead of the usual 10pm or 11pm if the Three Lions reach the final of the Euros. 

It said the decision had been taken to allow its staff to get home or to the pub in time for kick-off at 8pm. 

Employees who do not want to watch the match will be paid as normal, it said. 

Stores will be open as normal the following morning. 

England are playing the Netherlands this evening in the semi-finals. 

If they get through, they will face Spain in the final - and will have the chance to become the first England men's team to win a major tournament since the World Cup in 1966. 

HSBC is increasing the amount it will lend for most mortgages.

At the same time, the bank is ditching its 65% and 80% loan-to-value offers.

The maximum amount of money that can be borrowed on an 85% LTV has risen the most, ballooning by 150%.

Here are the changes in full:

• 95% LTV: From £500,000 to £570,000
• 90% LTV: From £550,000 to £750,000
• 85% LTV: From £750,000 to £2m (or £1m for flats)
• 75% LTV: From £2m to £3m
• 70% LTV: Increased to lending over £3m

"This could make the difference between someone being able to buy the property they want or need, or having to compromise by buying a smaller property with fewer bedrooms, or maybe in an area that is outside the catchment area of their preferred school for their children," said Chris Pearson, HSBC UK's head of intermediary mortgages.

Campaigners are launching a major new four-day working week trial in the hopes of winning over the new government.

Participating companies will begin the scheme in November before the findings are presented to the government next summer.

Some 54 of the 61 companies that took part in the first 4 Day Week Campaign pilot continued to use it after the study finished.

Director Joe Ryle told  The Guardian he was optimistic a Labour government would be more receptive than the Conservatives.

"Change is in the air and we hope to see employers embracing this change by signing up to our pilot," he said. 

"The nine-to-five, five-day working week was invented 100 years ago and is no longer fit for purpose. We are long overdue an update."

You may remember we reported on the success of the first trial here...

The quality of customer service is deteriorating across the UK's biggest companies, according to a new report.

A survey of 60,000 people about 275 major firms found satisfaction levels were at their lowest since 2010.

Customers reported a decline in complaints handling, as well as worse customer experience and a more negative view of company ethics, the Institute of Customer Service found.

"The current outlook isn't where we need it to be, despite our research showing that higher levels of customer satisfaction correlate with financial stability and growth," said Jo Causon, chief executive of the Institute of Customer Service.

"Business leaders need to understand the evolving needs and expectations of their customers, developing their organisations' approach accordingly to unlock the sustainable growth the economy needs."

The ICS's Customer Satisfaction Index rates satisfaction on a scale out of 100, with the overall score across all 275 companies standing at 75.8, a drop of 0.8 points on a year ago and 2.6 points below its high of 78.4 in July 2022.

Utility providers were the worst offenders, with a satisfaction rating of 69.8 out of 100 - though it was the only industry to see a slight uptick (0.3 points).

Digging into the data further, and water companies - plagued by sewage spills and rising bills - were the most disappointing among utilities, dropping to 69.5 points.

Tourism, leisure, retail, banks, automotives, insurance, public services and transport industries all saw a decline.

Satisfaction fell fastest over the last year in the telecommunications and media sector, down 2.1 points to 73.3/100.

On the other end of the scale, Timpson, Nationwide and John Lewis scored highest among individual companies - between 85 and 86 points.

Taylor Swift, Elon Musk and Martin Lewis are among celebrities whose identities are commonly misused by scammers, data suggests.

Martin Lewis's face and name have been used to steal £20m over the last two years, MoneySavingExpert found after analysing Action Fraud figures.

Some £500,000 was reported lost to one scam featuring Mr Lewis.

"It's likely that the criminals pumping out these scam ads effectively use their own in-house dark web digital marketing teams, researching which celebrities and advert types get the best click through rates, and honing the way they work to be able to attract more victims," said Mr Lewis.

"If it's an ad with me in, it's always a scam, as I don't do adverts."

The King, Jeremy Clarkson and Rishi Sunak have also been used by scammers. 

MoneySavingExpert asked Action Fraud to supply the data based on a list of celebrities it had created after asking people on social media who they had seen in scam ads. 

"Topping this list is about the worst compliment I've ever had," said Mr Lewis.

Below are the top 10 high-profile figures whose identities have been misused, with the percentage of total mentions in scams:

Ticket scams are rife as criminals seek to cash in on the popularity of Swift's Era's tour.

Fans have lost out on an estimated £1m since UK tickets for her tour went on sale last July, according to data published by Lloyds Bank.

Mentions of cryptocurrency, investing, retirement planning and promises to get rich quick are also particular warning signs to look out for in scam ads, MoneySavingExpert warned.

Every Wednesday we ask Michelin chefs to pick their favourite Cheap Eats where they live and when they cook at home. This week we speak to Benjamin Ferra Y Castell from one-starred  Pavyllon in London.

Hi Benjamin, can you tell us your favourite places in London where you can get a meal for two for less than £40?

1. Saint George Cafe

This is a French bakery offering delicious sandwiches made with high-quality products. Their bread is made by a French baker with a specially selected flour. 

The pastries are also amazing - using high-quality butter and the chocolate used in the pain au chocolate makes it one of my best sweet treats in the city. On top of all of this, their coffee is some of the best in London.

2. Tachbrook Street Market  in Pimlico

This market is really affordable and convenient and away from the hustle and bustle of Victoria Station. 

I used to go with my wife who loves spicy food, especially to a Thai food stand on the left part of the market which is a must-try. 

If you come back often enough as I do, they sometimes give a nice discount! 

Authentic Thai food made with love, available for less than £10 for a substantial portion.

3. Bar Italia in Soho

Offers great Italian coffee with authentic products from different regions of Italy. 

You can try different sandwiches and they have an excellent burrata. They serve real coffee, how it should be made.

What is your "go-to" cheap eat to cook at home when you have a night in?

I would suggest a nice vegetable appetiser, something fresh and flavourful which is cheap and tasty as long as it's seasonal. 

At home, when the first heirloom tomatoes come into season, I slice them and season with olive oil, fresh herbs and some anchovies on top - seasoning generously is a must! 

Try to buy smart, local and according to the season - that's one of my favourite tips.

I also recommend a nice pasta when cooking at home, using a brand called Rummo (note from Money team: their range is available from Ocado for around £2), served alongside delicious seafood. 

Go early to Billingsgate fish market, to buy quality seafood direct from fisherman. It's also usually cheaper and always fresher. Plus, you can negotiate a bit!

We've spoken to lots of top chefs and bloggers - check out their cheap eats from around the country here...

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