Business Growth Strategy Definition – Business growth is difficult. Whether you’re a small business owner, marketing team, or agency, riding a roller coaster of highs and lows is no small challenge. What’s even harder is setting ambitious but realistic expectations of what you can do.
That’s why growth strategies are of the utmost importance to any business. In this guide, I’m going to explain what growth strategies are. How is it different from a marketing strategy? and why it works with many examples I’ll guide you through a five-step process for creating a growth strategy for your own business. The five steps are:
Business Growth Strategy Definition
At the end of this guide You will be able to identify what goals you should set for yourself and what your team will need to achieve them. Ready to propel your business to steady, predictable and potentially explosive growth? Read on.
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There is a lot of confusion in the marketing world as to what a growth marketing strategy is. And how is it different from a marketing strategy?
First of all, a growth strategy is not a marketing plan. It is not meant to buy PPC ads, generate traffic through SEO or CRO testing on your website. this is marketing
Your growth strategy is the big road map you create to take your business from where it is now to where it needs to be in the future. This means:
In short, a growth strategy is a high-level strategy that outlines everything a business needs to do to grow. It’s a holistic, scientific approach to driving growth.
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A growth strategy is not a marketing plan. It is a high-level strategy that outlines everything a business must do to grow through a holistic and scientific approach.
Here’s an example of a hypothetical “Startup Masters” company growth strategy, which we’ll use for our example through a five-step process:
It can be hard to grasp the concept of creating a practical plan for something as broad as “growth” and seeing tangible results – but not only is it possible, it works! Growth strategy is the secret sauce behind the continued growth of some of the world’s largest companies such as DropBox, Dollar Shave Club, WhatsApp and many more.
Growth strategy is the secret sauce behind the continued growth of some of the world’s largest companies such as DropBox, Dollar Shave Club, WhatsApp and many more.
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Now that you know what a growth strategy is (and isn’t) and have seen tangible evidence of its ability to drive business growth. It’s time for the fun part: creating your own growth strategy.
The process of thinking of a growth strategy for your entire business can be overwhelming. There are many things that go into a business and determine the success of a business. Where do you start? Don’t worry, I’ve broken down the process of creating a growth strategy into five clear steps.
If you can predict how much revenue your new business will earn in the long term before you get started. Wouldn’t that help you figure out the best growth strategy to get there?
The point is that it’s more useful to start at the end and then come back. (as opposed to other methods)
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Let’s move on to the end of your growth strategy. This is where you set ambitious but realistic high-level goals. (It’s a delicate balance.) Business guru Jim Collins calls them BHAGs, or “big, hairy, bold goals.”
At Venngage, we call it “high-level” or “long-term goals.” Start setting long-term goals, such as your 10-year goal. Ask yourself the following questions:
Take a look at the growth strategy example I shared earlier. Here is a hypothetical 10-year goal and the steps needed to achieve it. For StartUp Masters, it looks like this:
Working retrospectively makes it easier to set realistic goals and objectives that the company needs to achieve in ten years, in five years, in three years, and in a year. You can also start smaller, for example setting a hypothetical five-year goal. This will help you set four, three, two, and one year goals.
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Working backward makes it easier to set realistic one-year, three-year and five-year goals for your business. to help you carry out your plan
Once you’ve set high-level goals It’s time to implement part of your growth strategy. These are the steps you need to take to achieve those goals.
Once you’ve set high-level goals The next step is to define key performance indicators (KPIs) for each goal you set. It’s important to identify key metrics and results that can help you gauge whether you’re on track to meet your goals. Here’s how:
The first metric you should specify is the North Star Metric. “One Key Metric (OMTM)”. This metric is a number that best represents the value your customers get from your product. Here’s a helpful explainer video by Alex from Web Profits:
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For example, Airbnb’s North Star metric is the number of nights booked. Why? It’s a clear indication of the value of the product. The more nights you book The greater the likelihood that customers will have a positive experience with Airbnb. And it is likely that they will come back to book their next stay. Keep in mind that the North Star metrics chosen should be directly related to your company’s revenue and customer retention goals.
Once you’ve selected a metric, The next step is to determine your performance for that metric. Let’s say you started a new streaming service like Netflix and you selected “Total Watch Time” as your North Star calculation. You have chosen this metric because based on your analytics, Higher watch time correlates with higher user retention. (which results in increased revenue)
Let’s say users spend about 30 minutes a day watching shows on your service. This is how your current North Star is calculated. That’s your baseline. One of your high-level goals is to increase user retention by 30% over the next 12 months. to achieve this goal Does it make sense to focus on improving total watch time per user?
Bottom line: See how you’re doing for your North Star metrics and how much that number needs to change to affect your high-level goals. Set your OKR.
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OKR stands for Objective Important Results. They refer to specific metrics you want to track that will impact your high-level goals. To start the software Many founders follow the AARRR framework for setting up OKRs. Activation, Retention, Earning and Referrals
Each metric can have a significant influence, so using the example company we started with above (“StartUp Masters”), we will focus on customer acquisition and retention for now.
StartupMasters It aims to influence acquisitions primarily through organic and paid traffic targets. The goal? Scaled to 130,000 organic traffic and 70,000 paid traffic per month.
If you look at the entrance There are many pages that drive traffic. They also outlined the amount of traffic needed to different parts of the website to impact their OKRs:
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Constantly dividing your goals into smaller, specific pieces of information will make it easier for you to achieve the ambitious goals you set for yourself. and when you achieve these goals You will see your growth plan.
And when setting OKRs, specify metrics that you can manage on smaller scales that will have a bigger impact. As you continue to find out what input affects your OKR, you can start thinking about the tests you can perform to influence your input.
Dividing goals into smaller pieces and consistently specific It will make it easier for you to achieve your ambitious goals. And see that your growth strategy is working. Step #3: Run a growth test.
A worthwhile experiment to perform is not as easy as it seems. A common trap that companies run into when implementing new product features or marketing ideas is this.
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Waterfalls occur when teams continue to add requirements to projects to the point where the time required to complete them gradually increases, similar to scope creep.
As a result, what was supposed to be done in weeks now turned into months. to avoid this problem I suggest you use a tempo run for a week or two. You can do this by breaking up a large project into minimum testing, or MVT. With MVT, you can quickly gain valuable insights and check whether a large project is worth it.
With minimum functional tests (MVTs), you can gain valuable insights faster and determine whether large projects are worthwhile.
Start by identifying the OKRs you are trying to influence. In our Startup Masters growth strategy example, we are trying to increase customer retention by 10%:
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Recording? Push multiple users to complete their projects in three weeks. to influence this metric. The test they can run is creating a pop-up modal in the project dashboard that prompts users to start a new project once they reach the 80% completion mark.
They also speculated on the outcome of this experiment and the effort each team needed to make it happen. before conducting large or small tests or experiments Run through this flowchart to see if you can break it down into smaller MVTs:
Your goals when planning out
