Growth Plan vs. Start-Up Business Plan If you're looking for expansion capital, potential investors will want to see a growth plan. Here's how it differs from your business plan.

A growth plan should emphasize how you will reproduce your previous successes. Rather than hypothesize about potential new markets or products, a growth-stage entrepreneur needs to think about making his or her operation conform to rigorous financial and operating standards while implementing repeatable policies and procedures.

Where the start-up plan may have a few sections on research and development, a growth plan should focus on your company's rollout and expansion. A fundable growth plan will be heavy on operational details such as staffing, sales, marketing and production. In the start-up phase, important financial ratios like gross margin are a poor guess at best, and a happy fantasy at worst. A growing business, however, has the advantage of using real operating results to project future growth. Any growth-stage funding plan should reflect actual results whenever possible.

Further, the level of financial detail available to--and expected from--a growing business is beyond anything a start-up could dream. How many prospects turn into customers? How many service staff does it take to support 100 accounts? How much will the phone bill be? Specific answers to these kinds of detailed questions are vital to the credibility of a growth plan, and they should replace the broad assumptions inherent in all start-up plans.

Editor's Pick

A Leader's Most Powerful Tool Is Executive Capital. Here's What It Is — and How to Earn It.
Lock
One Man's Casual Side Hustle Became an International Phenomenon — And It's on Track to See $15 Million in Revenue This Year
Lock
3 Reasons to Keep Posting on LinkedIn, Even If Nobody Is Engaging With You
Why a Strong Chief Financial Officer Is Crucial for Your Franchise — and What to Look for When Hiring One

Related Topics

Growing a Business

This Stock Screener is on Sale for Memorial Day

invest while mitigating risk with this top-rated stock screening app.

Starting a Business

5 Tips For Launching a Business While Keeping Your Day Job

Launching a business while holding down a 9-to-5 is no small feat. It's a common path for aspiring entrepreneurs, but it's not without its challenges.

Business Ideas

55 Small Business Ideas to Start in 2023

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2023.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.