When Should a Business Decide to Plan a Growth Strategy

Arguably, the moment a business is born, it should be planning for growth. According to management guru Peter Drucker, the purpose of a business is to create a customer, and the leader's job is to grow the value of that customer. Hence, a growth strategy should be part of the initial business plan from the very beginning.

The Importance of a Growth Strategy

When an idea for a product or business emerges, one should already be considering a growth strategy by the earliest stages. A growth strategy formulated merely minutes later, during the ideation phase, might be unrealistic and unfeasible; however, it serves as a foundation for further refinement as the business progresses. As enthusiasm wanes and real work begins on the idea or product, clarity about growth options, constraints, and other factors will gradually become more apparent.

If your business plans to be in operation for 10 years, there is a good chance you will eventually converge on a long-term growth strategy. Nevertheless, this plan will require frequent adjustments until the day of the business's exit. Nothing in business remains static, and the growth strategy needs to evolve with changing conditions.

Growing from Product Market Fit

Once a product or business finds its product-market fit, it's time to start thinking about scaling. Always include possible distribution channels in your growth strategy. While a growth strategy is crucial, it should not be set in stone at the beginning. Instead, it should be flexibly adjusted based on market share and other factors. Consulting with business experts, like me or others in your network, can provide valuable insights.

Commit First, Figure Out Later

A significant pitfall is overthinking and delaying actions due to a series of "what-if" scenarios. Here are a few common concerns: Are we ready yet? Do we have enough workers? Will they leave us because we can't manage the work?

Problems do not represent failure—they indicate either progress or regression. Whether they are positive or negative, problems are what enable you to move forward and improve. By addressing these issues, businesses can grow and become more robust.

Conclusion: While a growth strategy is a key aspect of starting a business, it should not be decided at the very beginning. It should evolve based on market dynamics and strategic adjustments. Embrace the challenges and cultivate a mindset of continuous refinement, and your business will thrive.

Note: This article is insightful for those just starting or those looking to refine their growth strategies. For more detailed content on business growth and management, follow me on Instagram at @essential_advertising.