Growth b - Personal Banking - RBC Royal Bank



IntroductionThe structure of this document is a guide only – you may wish to delete (or add) sections depending on your business type or the intended audience of your business plan. If you need more space, just keep typing.Growth business plan for[ENTER BUSINESS NAME HERE]DateWhat you’re selling[Enter text – the products and/or services your business offers.]Goals[Enter text – outline your business’s goals and objectives, such as your financial, community and customer objectives.]Location[Enter text – provide any relevant addresses.]Online presence[Enter text –website address, social media platforms for the business, search keywords.]1: Sell more to existing customersIt’s rare that a business doesn’t already have some resources that can help it grow. Whatever type of business you have, there will be opportunities for you to grow your sales revenue beyond its current levels. So it’s important to review your business and look at what possibilities already exist to help you expand. One of the easiest ways to achieve an increase in sales is to sell more to your existing customers. For example, you could try contacting every customer and offering a complementary product or service that they might need now.Make use of your databaseMake more effective use of your database of customers and clients by maintaining regular contact through newsletters (physical or email), phone calls, personal visits, or attendance at conferences and trade fairs. Advise them of special offers or tell them about any products and services they have not previously bought. If you haven’t already done these things you need a customer care programme, customer contact software and a customer loyalty programme. You also need to implement staff training to deliver an outstanding customer experience.Describe how you’re using your customer database to improve communication with your customers.[Enter text]Is there anything your customers would like you to sell?Conduct informal research on your current customer base, with the intention of finding out what they’re disappointed they can’t purchase from your business. Engage with your customers through social media channels to find out what they want. Ideally, you want to be selling the right products or services to the right people. By passively enquiring, you should get some ideas on how you can sell more to your existing customers.Describe how you’re using customer research to determine if there are products they want you could be selling.[Enter text]Anticipate customer needsDetermine when customers may have run out of product or need to re-order from you, and contact them just before this happens. By doing this, you’re not only predicting customer needs and making more sales, but you’re also generating goodwill. Your customers will appreciate that you took the time to find out when they’d need to re-order. It’s the kind of thing that they remember and tell others about. Outline the methods you’re using to anticipate customer needs and to send them reminders.[Enter text]Offer new ways for customers to buy from youOffer new ways for people to buy from you, such as online ordering through your website or through reciprocal links to other websites. You can also look at updating your payment options, to make paying easier. For example, if you run a service-based business, look at setting up a mobile payment option that your customers can make use of on-the-spot. Describe how your customers currently buy from you and what you plan to do to update it.[Enter text]Learn the art of cross- and up-sellingLearn the art of cross-selling. This means suggesting to customers that whatever they’re buying from you would be of more value if they purchased a complementary item. For example, if you’re selling business attire for men and someone buys a shirt from you, you’ve got an opportunity to cross-sell by encouraging them to purchase a tie as well. Provide an incentive for staff to up-sell (try to sell a more expensive item) and cross-sell (try to sell the tie with the shirt).Outline your plans for teaching your staff how to cross- and up-sell. [Enter text]Pay attention to customer needsPay attention to what else your customers need and give it to them. For example, a successful automotive repair shop that’s particularly busy each autumn and spring due to drivers requesting installation and then removal of their winter tyres, could be introduced a new service – onsite tire storage. By effectively charging rent for hundreds of tyres sitting on shelves, passive income is created from this new service. Describe your methods for gaining customer feedback about their purchase needs. [Enter text]2: Find new customersIf you have an existing customer base, then you’ve definitely got a demand for your product or service. And if you have demand, you can get new customers.The first step is to build a profile of your ideal customer. If you already have some regular customers, it should be easy to build a customer profile. If not, base your customer profile on your business plan research while taking into account your competitors’ customers.Try to be as specific as you can. For example, instead of targeting ‘female professionals’ you’re better to describe them as ‘female accountants aged 25-40 who live within 30kms of our business.’It’s then easier to think about where they might be, what they’re listening to, or what they’re doing when you run your promotion.Generate word-of-mouthGenerate as much positive word-of-mouth advertising as you can. It’s one of the most effective ways of getting new customers. Referrals from your existing customers don't cost anything and are effective because the people are already half-sold: your customers have recommended your business and that carries more weight than any claims you might make. Word-of-mouth referrals flow when your existing customers get outstanding service and value from you, so make sure you provide an outstanding customer experience.Outline how you plan to boost word-of-mouth advertising.[Enter text]Identify your best customerIdentify your best type of customer (one that pays on time, orders regularly, buys volume and refers customers to you) and try to find more like them. Develop a system of asking for referrals after a set time period, and offer staff incentives to encourage referrals.Describe your best type of customer.[Enter text]Increase your business profileYou're looking to boost your brand awareness, and you can do this by improving signage, using social media, optimizing the SEO on your website, making use of traditional methods such as newspaper and radio, attending or exhibiting at trade shows or conferences, and speaking at events, attending conferences, blogging, writing for magazines or volunteering for projects. Outline your plans for boosting awareness of your business and your brand.[Enter text]Creating a marketing planCreate a marketing plan to identify, locate and sell to new customers. Decide which specific type of new customer you want to target, then allocate a budget and calculate what sales you need to recover the cost of the campaign and make a profit. Roll out the campaign and measure the results, adjusting as you go based on what works and what doesn't. Duplicate any tried and true marketing tactics you may already have. Outline your marketing plan.[Enter text]3: Introduce new products or servicesYour goal identify any new products or services that a) complement those already existing and b) your customers have indicated they’d be interested in buying them from you. Any new product needs to complement what you already sell, not be a substitute, otherwise there is no growth in sales.Diversifying into new products is a medium to high risk growth strategy because new products and services cost time and money to source or develop. Because markets are dynamic and constantly evolving, no business can afford to stand still. No matter how excellent your products or services, they have a finite lifespan, so they have to be developed or replaced if you’re to continue growing your business.New products and services are the hallmarks of a go-ahead business. Collect customer feedbackAsk your existing customers what else they want and or would buy from you. Use their feedback to identify the opportunities. Then design or find new products or services to match your customer needs. Pilot or trial the intended product to selected customers first for their reaction.List all the new products and services opportunities that have come up after talking to customers.[Enter text]Investigate joint venturesInstead of developing new ideas yourself, you might consider looking for other companies who may be producing your ideas already. You could investigate exclusive distribution agreements. Outline any joint ventures that could be worth pursuing.[Enter text]Research and developmentAllocate a percentage of sales to research and development. Always look for new products or services that will help you grow. Determine what percentage you’ll use for R&D.[Enter text]Make use of the internetLook for opportunities to add to your sales growth by identifying how you can change what you sell through the internet. For example, a printed book can now be sold as an e-book. Physical workshops that teach certain skills can be transformed into online learning modules. You could also have products that can be sold online as well as in a physical location. It’s worth investigating how you could add an online store to your website.Outline your plans to make use of the internet to boost sales.[Enter text]4: Identify and explore new marketsThe idea is to identify a new market that you’ve never entered before. It’s important to weigh up the cost of entering a new market (especially if it’s an export market) with the potential returns. Growing in a new market offers possibly the most potential for growth as you may be able to take the successful business model you have developed and duplicate it in another area.Make sure the move is viableConduct an extensive financial analysis to ensure the move is viable. Use your existing business information such as demand compared to population to assess the potential. You can then research other likely locations using the Canadian Government’s Industry Statistics website. Outline the results of your analysis.[Enter text]Research the competitionSpend time on researching the competition (the internet and directories are a good place to start). They are unlikely to sit and watch you enter their space, so be prepared for a reaction.While keeping current on your direct competition is always good business practice, try digging deeper into their affairs to see what they’re up to next. Do things like subscribe to their newsletter, read their promotional literature, and even become a customer. Go online to read their annual reports, monitor key moves in human resources, and pay attention to strategic alliances?For some unique insights, learn what you can about suppliers to your competitors, as well. For example, some savvy stock market investors make their money by investing in suppliers about to do more business with Google Outline your competitor research.[Enter text]Consider a strategic allianceTeaming up with another company to pursue common goals is a smart way to grow your company. It just makes sense: two heads are better than one.A strategic alliance is a cooperative agreement where companies come together for a specific duration and/or project and add value to each other through the alliance. Resources, skills and/or capital are pooled for mutual gain. Whether your business is small or large, creating domestic or international partnerships can help gain an edge in today’s marketplace. Strategic alliances let two (or three or four) companies share each other’s strengths. For example, a convenience store might form an alliance with a fuel company to create a one-stop gas station. Together, these companies can pull in a larger number of customers and benefit from complementary sales activities.Describe any possible strategic alliances you could form and how they would be mutually beneficial.[Enter text]5: Identify and offer new distribution channelsA distribution channel is simply the way that you get things to your customers, and there are a number of ways that any business can reach their potential customers. Is there another channel or way of selling to your market that would open up growth opportunities? For example, if you're a retailer that relies on having a great location, then could you also sell on the internet? That would open up a direct channel to the public so they don't have to visit you and they can order at any time.It's important to be careful not to create conflict within your channels of distribution. For example, if you sell to retailers, but also decide to sell direct via your website, you would need to check how the retailers feel about you doing this (especially if you offer lower prices online than the retailers). Very few businesses sell via every channel. Choose the channels that promise the most growth.How can you reach potential customers?Consider all the ways you can reach potential customers. For example, you could reach them directly by opening a show room, wholesaling to retailers, through a company web site, direct to the public, and at home shows and trade fairs.Outline all the different ways you’ve identified of reaching new customers.[Enter text]Make use of your existing customer databaseProfile your existing customer base to re-establish your target consumers, and then determine different distribution channels that you could exploit.Describe how you plan to use your database to find new distribution channels.[Enter text]What can you do with what you already have?Could you do more with the distribution channels you already have? Contemplate replicating a successful store by opening more in different locations, or setting up a franchise to share the risk amongst franchisees.Outline your current channels and how you could do more with them.[Enter text]Build an online distribution channelOnline distribution frees you geographically. Where you might have been selling your product or service locally, opening up an online distribution channel means you can sell it on a global scale, which is a really effective way to grow your business and boost your brand.With online distribution, you can open up your offering so that you’re selling more than just your product.For example, if you’re selling power tools, you could also offer how-to videos via YouTube. Once your YouTube channel is operating, you can extend the how-to videos into information that people subscribe to, via e-newsletters, blogs and social media.You can also deliver your marketing material online through content marketing. Your website and social media platforms work together here, with social media driving traffic to your website where customers can access your content.Outline your plans for an online distribution channel.[Enter text]6: Change your business modelYour business model is how you receive income. Sometimes there are growth opportunities by changing the way you do business, especially if demand shifts. For example, if you own an education company, one business model is running workshops and charging a presenter fee for each workshop run. A different business model is to place the training online and ask participants to subscribe to an online fee. Always check that any new business models are in line with your business vision. Technologies and markets change at an ever-increasing rate, and often there are growth opportunities available that just require a shift in how you receive the income.Make sure any new business model is substantial (creates more revenue than an older way of doing business) and sustainable (creates more long-term revenue than an older business model.Establish your business onlineThis has been covered in the previous section, and is worth considering in terms of your business model.Describe how you plan to establish your business online.[Enter text]Consider becoming a franchiseOne of the best and most effective ways to grow your business and see a major spike in profits is to turn it into a franchise.The main factor to identify is whether or not your business can be replicated. It’s also important that there’s a demand for what you’re selling – is it so popular that it can be sold in different locations, by other business owners? Think of successful franchises – ones you know locally, and those that are globally dominant, like McDonalds – and ask yourself if your business has what it takes to follow in their footsteps.Businesses that successfully become franchises are those that have robust and efficient systems in place. If your business runs like a well-oiled machine with great systems and streamlined processes, including well-trained staff, then there’s a good chance it could become a franchise.If you’re considering becoming a franchise, outline the reasons you believe it will work.[Enter text]Selling directThis is the shortest route between your business and its customers. It involves buying directly from you without any go-between. It’s probably the simplest and certainly the most direct business model.Describe how you could update your business model to sell direct.[Enter text]SubscriptionConsider a subscription model, which involves a monthly or annual charge for services or products a customer uses. For example, a magazine business could offer a one-year online subscription to get cash up-front, which might help with cash flow issues. Describe how you could add a subscription model to your business.[Enter text]7: Buying businesses to grow your businessOften growth can be achieved through the purchase of other businesses. Take care that you either use existing cash, or the new business has enough cash flow to assist the financing of the purchase cost. Also seek professional advice to discuss the wider implications of buying another business. One the most difficult aspects you will face is having to be in two places at once. Once you have more than one business both will make demands on your time, so delegation, time management and prioritisation become critical.Identify a businessLook at a similar type of business. In effect you’re buying market share, and the business you buy could be a competitor in the same market, or a similar business in a new market.You could look at purchasing a key supplier, to guarantee raw materials, exclusive supply or to reduce your costs. List potential businesses you could buy and how they would benefit your core business.[Enter text]Purchase a key customerConsider purchasing a key customer. By doing this, you’ll be able to make decisions that directly benefit your business. For example, you’ll gain control over how much stock your customer’s company buys from you – and you can decide who else they buy stock from, ending relationships with your competitors.Outline your key customers and the potential of buying them out.[Enter text]Purchase a complementary businessConsider a complementary business, to form a strategic partnership that will be more competitive and able to enter new markets. However if you’re looking to diversify, you’ll want to look at different businesses altogether.List the potential complementary businesses you could look at buying.[Enter text]Purchase a competitorYou’ll get access to your competitor’s customer base, staff, location and any supplier contacts or contracts. Odds are your competitor has unique strengths your business can benefit from. You’ll be able to open up to new and diverse markets as you add more value for your customers. And, because you already know the industry, acquiring a competing business should be a safe investment if everything checks out once due diligence is complete.Outline if there are any potential competitors you could buy and why they would be beneficial.[Enter text] ................
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