Planning for business growth

Whether you have a newer or established business, you might be considering ways to grow your business. You may be actively looking for opportunities, such as reaching into new markets, increasing production, or diversifying the goods and services you offer. Or there could be an unexpected opportunity as the business context or environment shifts – perhaps a larger premises becomes available, or a new market opens as consumer tastes change.

Growth offers your business exciting new opportunities. As well as increasing revenue, it could provide resilience in changing business conditions. But it can also bring challenges if you’re not fully prepared for it. For instance, you may need to manage cash- flow, and confirm you can increase supply of your key inputs, while ensuring your customers continue to receive great service.

Preparing for growth

It’s important to plan for growth. How can your business prepare, so you’re ready to make the most of opportunities for growth when they arise? Andrew Eastwood is Bendigo Bank’s Head of Business Banking. He has worked with businesses of many different sizes, across a variety of industries.

Andrew believes that planning for growth starts with building a resilient and robust business plan. This will act as your roadmap. Research and solidify your place in the market, identify your competitive advantage and set goals and budgets.

To help drive growth, Andrew recommends businesses invest in ways to automate repetitive tasks. This can create capacity for you to spend more time on revenue-generating activities. “Customer support is a great place to start automating. Use a CRM (Customer Relationship Management) system to track customer orders and anticipate future demand.”

Andrew also recommends paying close attention to the sales pipeline. “Outline the customer journey. If it isn't running as effectively as you'd like, make changes that will positively impact your customer experience. Think about how people find your brand. How do they find your business? Then map the customer journey from there.”

He suggests that businesses analyse the experience their customers will have when engaging with them. “Step into their shoes to identify any stumbling blocks and bottlenecks. You might notice there are too many steps, and you might lose the customer in your process. Or you might notice there are not enough steps. Everything is about the customer experience,” Andrew said.

Mitigating risk

Consider future risks that could affect your business – issues such as supply chain challenges, rising freight costs or delays. Analyse how an unexpected issue would affect your business, and what the options are for pivoting or adapting your approach if necessary. How would you respond to the unpredictable? What future-proofing can you do?

For regular economic and market updates that can help you make informed decisions, visit our business banking hub.

Key tips in planning for growth

1. Have a solid Business Plan, which sets out your products or services, target market, finance, competitors, marketing, staffing needs and other important factors. Access our business plan template here.
2. Get a clear understanding of who your target customer is and explore ways to attract them.
3. Outline your customer journey – from enquiry to fulfilment. Can this experience be improved?
4. Engage key suppliers. Outline your vision for, say, a 12-month period and highlight how important your suppliers are to your business. Discuss with them how they can support you to grow, which will in turn be positive for their businesses. Identify any expected risks or challenges over that time which might affect supply.
5. Look for efficiency improvements – can you streamline existing processes or automate repetitive tasks?
6. Consider ways to market your business. Do you have a marketing budget? Do you have or need an online presence?
7. Review your finances and consider whether you need to speak to your bank about finance options. Will growth require larger premises? Would new equipment help to automate processes and improve efficiency? What banking tools or products will help you manage cash flow and keep sufficient cash reserves?

Most important of all, stay engaged with those who are committed to your business. As Andrew recommends, “Take the time to meet with your team, partners, and suppliers to discuss your vision. And never lose sight of what matters to your customers.”

Your local Bendigo Bank business banking specialists can help you find financial solutions, so your business can grow and thrive.

 Your business matters. Make an enquiry today.