Ten Steps To Profitable Growth
By Bruce Johnstone, Director of the Business Growth and Development Programme at Cranfield School of Management
The team that delivers the Business Growth and Development Programme (BGP) at Cranfield School of Management have uncovered insights into what it takes to grow a business and stress ten steps that are vital for business growth. Business owner-managers who attend a briefing session for the BGP participate in a discussion of these ten steps led by Cranfield Visiting Fellow, Mark Kelly.
Step 1: Keep the Passion Alive
Passion is the vital ingredient that drives business growth. The owner-managers of fast-growing businesses are three times more likely to...
...be “as passionate about the business today as when I first set it up”.
Step 2: Become a Strategist
Successful owner-managers often begin as Artisans – people good at doing the work of the firm. As the firm grows they take on roles as Hero or Meddler. Ultimately they need to take on the role of Strategist if the firm is to grow.
Step 3: Know Where You’re Going
Over two-thirds of the fastest-growing firms have written business plans (compared to 44% of slow growers and decliners). The Business Growth and Development Programme (BGP) at Cranfield creates an environment where business owners can forge a plan for growth.
Step 4: Stick to the Knitting
Focus on supplying existing products or services to existing markets. Get this right before moving into adjacencies. Trying to grow by supplying new products to new markets is a risky approach which Mark Kelly calls “the stupid box” of the growth-market matrix.
Step 5: Know Your Competition
Successful growers are always one step ahead. Aspire to greatness and ask what can you be great at? Always benchmark against the ‘next division up’ and focus on how you can win. Be ready to seize the right opportunities and ‘Bet Big’. Kelly explains that... continued on page two >