GROWTH SECRETS: Pulling it all together in a plan

The plan should be very specific about the strategy to create demand for existing and new products since this is probably the greatest area of exposure in the plan.

The plan must be able to show how that will be supported through the operations and development parts of the business to show that the business can deliver on its sales.

At the same time, the business must manage its risks. Contractual risks are an area of great concern to fast growth companies. Having done the business, they don’t want to be looking over their shoulder to see if it needs to be done again.

Thus well written contracts with customers and suppliers, well-designed contracts of employment and well documented intellectual property ownership and assignment are all components of good management of risks. Other risks need to be identified through a risk analysis exercise and simulation exercises. Some risks might be regarded as acceptable due to their low potential impact, while others need to be addressed so that plans are put in place to minimise, contain or avoid them.

Few plans are ever realised as written. Not that they were bad plans at the time of their creation, but circumstances change. However, by having a clear understanding of how the business works, new opportunities can be better addressed, the impact of setbacks and problems can be better analysed and corrective action can be taken in the context of everything else that is going on.

The impact of new growth opportunities on the existing business can be more easily defined and the chances of finding the necessary resources to pursue an opportunity can be better assessed with a comprehensive planning process.

Tom McKaskill is a successful global serial entrepreneur, educator and author who is a world acknowledged authority on exit strategies and the former Richard Pratt Professor of Entrepreneurship, Australian Graduate School of Entrepreneurship, Swinburne University of Technology, Melbourne, Australia. A series of free eBooks for entrepreneurs and angel and VC investors can be found at his site here.