| Developing a Business Growth Plan |
A major part of any business plan intended for professional investment is a growth plan detailing how the business can increasingly take advantage of economies of scale. Investors want to see how each $1 they invest can become $2, $3, or more over time and the best way to accomplish this is to create a foundation which can spread its costs over more and more sales. These are some items to plan for when creating a plan for growth.
Scalable Operations Systems
For a business to grow significantly without increasing costs at the same rate, its operations systems must be able to handle greater and greater revenues and scale. This means not only choosing software systems which can scale up to handle increased processing either for no additional cost or small fees to buy more capacity, as well as manual operation systems which can handle as many transactions as possible before additional hires must be made.
Adding or Distributing to New Locations
Working with new locations, whether they are your own retail locations or additional retailers, distributors, or outlets you are selling to, can mean the potential for doubling your sales volume and more. Consider how the products or services you have created will work with little additional investment in development for these new locations to know that you can spread your startup costs over this expansion.
Expanding Staff
If each additional staff member hired can only handle the work of each before him or her, then your labor costs will rise in tandem with your productivity. However, if you continually find ways to increase the productivity of each employee or to hire lower cost labor for new positions, you can fight this trend. Consider how you can attempt to push responsibilities down to the lowest cost labor possible without exploiting employees or breaking laws.
Eric Powers is associated with Growthink, a business plan consulting firm. Since 1999, Growthink's business plan consultants have developed more than 2,000 professional business plans. Call 800-506-5728 today for a free consultation. If you're writing your own plan, Growthink's business plan template can help you finish it quickly and easily.
http://www.growthink.com
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