Business growth is all about improving a business’ profitability through either growing profitable revenue or reducing costs. Ultimately only so much profitability can be squeezed out by reducing costs so top line or sales growth is more of a focus. If a business can be grown, putting aside risk, more cash flows will ultimately be available to owners and when the time is right the business will be worth more. Business growth is usually planned and typically starts with an assessment of the business financially such as is it making an adequate profit and return on investment and a SWOT analysis.
A SWOT analysis is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. Strengths and weaknesses are internal to the organisation and opportunities and threats are external. Strengths and weaknesses should be managed in order to counter threats and take advantage of opportunities.
Once key areas and associated actions are identified with the assistance of such tools as a SWOT analysis the projected results are forecast or budgeted and results monitored accordingly.
At Nairn Fisher we have significant experience in strategic and business planning as well as budgeting, reporting and monitoring. We do not advocate complicated business plans, unless required for funding purposes, and even then we understand what banks require and keep to that scope.