An organization should plan to grow. The growth achievements to-date will be already reflected in the financial statements. Future growth should be projected so its impact on the financials and cash flow can be planned. Growth will increase the size of the profit and loss / income statement as well as the balance sheet and cash flow.
An organization should review its key growth achievements for the period and plan for future growth.
We give examples to help you review your own growth achievements, and to plan your short and long term growth plans.
Key growth achievements
Examples:
The company:
- recorded sales growth in its markets.
- launched its new product or service during the period.
- achieved significant market traction with the release of its new product or service into its key markets.
- posted its first sales into a new market.
- expanded its sales force.
- commissioned a new plant and commenced operations.
- obtained regulatory approvals for the operational license.
- established a joint venture company for the production of the new product.
Future growth
An organization should review its future growth strategies for the next year as well as future years (long term growth).
Examples:
The company intends to:
- Expand sales in its key markets by doubling the size of its sales-force in those markets.
- Develop the business by growing its presence in a new market.
- Expand the market by introducing new products and services.
- Investigate the potential of selling its products and services into new markets.
Long term growth outlook
Examples:
The company plans to:
- Launch a new product or service. Plan to capture a % share of the market.
- Develop new markets.
- Continue development of products and services.
- Investigate new opportunities for products and services.
- Focus on productivity improvement.
- Strengthen the business fundamentals.