How to Grow Your Business in 2024 and Beyond
Over the next few months, businesses will typically engage in a planning cycle for 2024 and beyond and plan how to grow their business.
This process should include the following steps:
1. SET TARGETS
Setting targets should include a review of the business’s financial performance for the last three years and setting revenue and profit targets for the next 1-3 years. These targets should take into account the current economic climate and industry conditions. It is important businesses do not confuse sales growth with profit growth – it is more important to grow profit, even if this means reduced or no revenue growth.
2. DETERMINE THE BUSINESS MODEL
The business should determine the following:
- Where it is going to play, i.e. who is its target customer?
- How it is going to win, i.e. what is its sustainable competitive advantage?
- What capabilities does it require to win based on where it will play.
In the current market, where opportunities are somewhat plentiful and resources and capabilities are limited, businesses must be laser-focused on where they will play so that they can deliver.
3. REVIEW THE INTERNAL & EXTERNAL ENVIRONMENT
This review will look at factors that will help the business achieve its targets and factors that will hinder it from achieving its targets. Businesses must focus on the elephants, i.e., the factors that are material to the business, rather than chasing rabbits that are not material to the business. A robust SWOT analysis is critical to deciding the strategies to achieve the business’s targets. If the SWOT lacks material factors, then strategies set to achieve the targets may be deficient.
4. DECIDE STRATEGIES
The strategies selected should:
- Enable the company to achieve its targets
- Support the ‘where to play’ and ‘how to win’ decisions
- Address the SWOT
In the current environment we are finding our business clients are mainly dealing with the following factors that are hindering their ability to achieve their targets:
- Recruitment and retention of staff
- Supply chain disruptions
- Increases in labour, material and freight costs and the impact on margins
- Cashflow impacts and delays in invoicing due to challenges in getting product and services delivered due to staff shortages and supply chain disruptions
- Managing customer expectations where there are delays in delivery or you cannot deliver
- Internal processes that are heavily reliant on labour
All businesses must address these and other factors that may HINDER their ability to achieve their targets.
For businesses seeking growth, they must consider the best way to grow given market conditions and the business SWOT. This might be to focus on existing customer segments with existing products/services, or to expand products/services or to expand into new market segments.
From our recent experience working with leadership teams through the above process, we have found they can find the solutions within and identify the strategies to navigate these challenges, achieve their targets and grow a sustainable profitable business.
For any enquiries, please contact us HERE or at admin@brentnallswa.com.au or call us on (08) 6212 7200.
