Growth planning

START-UP, SCALE-UP

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Build your growth plan Reshape your target market Use marketing to grow Use digital tools to grow Use innovation to grow

Start creating your growth plan

Reshape your target market

Use marketing to grow your business

Use digital tools to grow your business

Use innovation to grow your business

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Growth plans are different for everyone

If you want to grow your business, your growth goals need to be both achievable and sustainable. A growth plan helps you to clarify the objectives, tactics, and resources you'll need to achieve this kind of growth within a set timeframe. Your plan should be your roadmap. It should detail the steps you need to grow no matter your goal, whether it's expanding , increasing revenues, or enhancing performance. Growth plans are important for all business sizes. They provide a framework for decision-making that helps to always align you with your goals.

A growth plan:

Builds on strong business foundations and enables you to grow your business sustainably.
Helps you look at each aspect of your business and set specific goals.
Allows you to calculate the resources you will need.
Helps you understand your key opportunities for growth.
Describes how you'll embed these methods in your business through change management and communications.

When you use a growth plan successfully you'll be more likely to achieve controlled and successful growth.

What are the benefits of a growth plan?

There are five key benefits to consider. Click the plus icon to expand each section.

Achieve sustainable growth expandable section

Knowing how people engage with their favourite brands and what influences them to buy are key to growing a successful online business. For example, your research may find that 55% online search for reviews and recommendations, or that 47% visited the company website.

According to McKinsey "those companies that set growth strategies to address all available pathways to growth are 97 percent more likely to achieve profitable above-peer growth."
Stay ahead of competitors expandable section

Growth plans help businesses stay agile and adapt to changing market conditions. This means they can seize new opportunities and stay competitive.
Attract investors and gain funding expandable section

A well-structured growth plan can inspire confidence in investors, lenders, partners, and customers, as it demonstrates the business's commitment to long-term success.

Taking time to define a clear growth plan helps when you're looking for funding. It will show investors the likelihood of future profits and success.
Increase revenue expandable section

A growth plan should include strategies for boosting sales, which directly impacts revenue and profitability. This means setting out ideas on how to attract more customers, spot other sources of revenue and ways to increase income and reduce costs.
Prioritise work and goals that make impact expandable section

Growth plans help businesses prioritise and allocate resources effectively, ensuring that efforts are directed towards the most critical and impactful areas.

When you build a growth plan, you'll look at all aspects of your business operations. As you do this, there will be opportunities to spot chances to improve performance. For example, using automation to streamline admin tasks. This frees up your time. Targeted marketing is another example. It can save time and money, while helping you reach the right customers for your new product.

Chapter 2 - Planning for growth

Building from foundations

Before you can start building, the first step is to check you have strong foundations. When building a house, it doesn't matter how well you build or how strong the material. You need strong foundations to achieve a strong, sustainable house. The same goes for growth. Before you start to build, check that your business has all its core foundations in place.

Want to check or build your own foundations? Maybe you've already read our core business lessons.

Here they are again, if you need to read or refresh:

Looking for growth opportunities

There are three core parts of your business strategy you should keep in mind when looking for growth opportunities:

If you don't have the above in place, take a look at our lesson on Business purpose.

Carry out a 'SWOT' analysis

You'll need to bear your overall strategy in mind when setting goals for your growth. As part of this, we recommend you carry out a 'SWOT' analysis. This is a strategic planning tool used by businesses, organisations, and individuals to assess their current situation and identify areas for improvement or growth.

What does 'SWOT' stand for?

Let's look at some typical examples.

To make sure these help your overall strategy, it’s a good idea to focus on finding SWOT aspects that are related to your goals. For example, say you want to increase your revenue. You would focus on the aspects of your business that currently help you with this, the weaknesses that are current blockers, the new opportunities you have to do this and any external factors that may stop you from achieving your goals.

It’s a good idea to consider SWOT for each of your business goals, as well as your vision, mission and USP. This will help make sure you’re working towards your future vision with every growth plan decision you make.

SWOT example - A bakery:

Chapter 1 - What is a growth plan?

Chapter 3 - Goal setting

Turning your SWOT into problems and opportunities

Setting goals

From your statements, it should become much clearer what the focus of your goals should be.

Let’s take our bakery example. The bakery has an opportunity to enhance its market position and attract a wider range of customers by addressing its current limitations. By expanding the menu to include gluten-free and vegan options, the bakery can cater to a more diverse clientele.

Your focus areas here look like a change of target market, development of new products, plus potential for new marketing techniques to reach your new market.

As you’re turning these into goals, we recommend using the SMART method to create clear, well-defined growth goals. These are easier to meet and track.

We cover SMART goals in full in our business purpose lesson - but let's do a quick recap.

Select each to find out more.

Specific expandable section

Goals should be clear and ideally focus on one area. They should set out a specific action you are going to take. For example - Increase sales.
Measurable expandable section

You must be able to measure the success of your goal. This means setting targets to track progress. For example - Increase sales by 50%. You can then say without doubt whether or not you have achieved this, using data.
Achievable expandable section

It's good to stretch your business to be better. At the same time, goals should be realistic. They should reflect the resources, skills and time you have or can get.

For example - You might lower your target to 25% after reflecting on how hard 50% would be for your business to achieve. It can be helpful to look at your track record. If you've only been increasing sales by 10% each year, how realistic is it to expect 50% with extra focus?
Relevant expandable section

Goals should always align with your overall mission. This ensures that everything you do helps you get closer to your long-term vision.

Always consider if there's anything you can add to a goal to help achieve your long-term goal. If you're increasing your sales, how can you do so safely, sustainably, or in other ways that better reflect your purpose.
Time-bound expandable section

Goals should have a specific deadline. For example - Increase sales by 25% by the end of the year, without lowering our customer experience score.

Chapter 2 - Planning for growth

Chapter 4 - Iterating your growth plan

Turning your goals into a roadmap

Now you have your goals, you can start to consider how different methods of growth might help achieve them. We have lessons on lots of different growth options - from using digital skills to grow to reshaping your target market and using innovation techniques to grow.

Things to think about as you grow

What you have now is a list of potential growth goals. You'll turn this into a plan as you go. The big benefit of the work you have already done, is that you now have a laser focus on achieving your vision and mission through growth. Don’t be afraid to change things, adapt them and improve as you learn more. This whole process is to equip and test your thinking to make sure you create the most robust growth plan possible.

As you come across things that could become an issue, it’s a good idea to write down these risks. Doing this as you see them means that you're less likely to miss something that could become a blocker to growth later on. This helps you to manage your risks without being too distracting.

As you consider different elements of how you’ll grow, note what needs funding . When it comes to creating your funding plan and looking at sources of funding, you’ll already have made a start.

Given your goals are SMART goals, you should have specific enough views on what you’re trying to achieve. This means you should have an indication of how you’ll measure the success of your growth. Track this as you go. This helps you check your growth progress.

For now, you’re taking this journey on behalf of your business. It’s okay if you don’t have all the answers. Asking your team and others for help, support and opinions can really help make your growth plan better. Remember, your growth plan is and should be unique to your business and goals. So, though it’s helpful to work with and network with your peers, make sure you’re always doing the right thing for you.

Chapter 3 - Goal setting

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Know where you are before you plan where you’re heading

Before you think about growing, you need to be clear about your current market. Who are the customers in this market? Where are they?

Once you know your market, you can start to think about how you might re-shape it to grow your business.

Questions to ask about your current market:

Who buys from your business?
Why do they buy from you?
What factors influence their buying decisions?
Where do they buy from you (online or in person)?
Have their buying habits changed over time?
What are their expectations? Look at quality, price and service.
Is there a similar audience elsewhere?

Seeing opportunities

When you look at your current market like this, you may start to see gaps. Are these gaps you could fill? For example, if your customer has had a change in buying habits, how can you cater to this?

You should also think outside your current market. Are there any markets that are similar to yours? Look at your answer to the questions to help. If there are, this might be an option for growth.

In the rest of this lesson, we’ll take a deeper look at how you can grow both inside and outside your market.

Chapter 2 - Grow in your market

Why focus on your current market?

You may have started to see gaps in your market from our last chapter. So you may have ideas on how to grow and increase your market share.

Staying in your current market can be safer than expanding into new ones.

You already know this market, and have existing relationships there. So you don’t need to spend time and money researching. Instead, you can focus on gaining sales – or customers – in a market you’re already familiar with. We’re going to look at two ways of doing this.

Market penetration

This is where you look at the market you’re in, and work out how much of this market you already have. Then you can use this measurement as a baseline for growth. The idea here is to improve your share of the market you’re in.

Working out your market penetration rate

So the first step is to work out your current rate. This is how you do it:

Market penetration rate = (Number of customers/target market size) x 100

Let’s work through this with an example. Say you know you have 500 customers. You estimate that your overall market size is around 2,000.

So your market penetration rate is (500/2,000) x 100 = 25%

You can use this as a baseline, and to show that there’s potential for growth in the market.

Using market penetration to grow

If you know there are potential customers in your market, you can look at ways to attract them.

Here are some examples:

Segmentation

Here’s a different approach. You split your target market into different groups. This could be by location, age, lifestyle, income or other factors. Then you can focus your attention on one or more of these smaller groups.

This can be a useful strategy if large businesses dominate the overall market. Instead of competing across the whole market, you’re using your resources to target certain areas of it.

Here are some examples - select each one to find out more

Location expandable section

When you split your market by location, you can target customers who are local to you. You might also be able to think about what people in a specific area need or use.

For example, customers in rural areas may need more rugged, weatherproof clothes that people based in cities.
Age expandable section

You may find an opportunity to target products to people of certain ages. What does this group need? Are you - or others - meeting these needs?

For example, some beauty brands have specific ranges for those in the 50+ age group. Perhaps you can shape your services to meet the needs of college students or retirees?
Income expandable section

This is where you think about how much your customers earn. Plus, what their disposable income is.

You can then focus on one or more income groups to grow your market. Is there a gap in the market for high-end products or luxury services? Can you create a low-cost option for those on a low income?

Chapter 1 - What is your market?

Chapter 3 - Grow to new markets

Why focus on new markets?

You may feel that your business has grown as much as it can in your current market. Perhaps you’ve found a similar market that would be easy to enter. You may even want to extend your reach to other countries.

When you move into a new market, you’ll need to research it first. There may be extra costs or restrictions to consider. The risks – and rewards – may be greater than staying in the market you know.

Let’s look at some methods you can use to enter new markets.

Expansion

Your growth might have peaked in the market you’re in. To check this you can use the market penetration rate we explained in chapter 2. If so, it may be time to find other markets that are easy to reach.

Here, you still have a presence in your current market. But you’re also selling elsewhere. Let’s look at some options for expansion.

Here are some examples:

Open in new locations

You may find you need to expand into a new venue. Maybe you can no longer meet customer demand where you are now You may be running out of space.

To do this, research the new locations. Check - does it attract your target customers? Are there others competing locally?

Another solution may be to grow online. You can also still keep your physical location. You may even decide that a mobile service, like a van or bus, would attract customers who can’t come to you.

There are benefits of expanding like this, within your own country. You may meet less competition than if you moved to a wider overseas market. But in time, you may outgrow your home market.

Target new customer groups

Who are your customers? And who aren’t?

Maybe you have a service that works well for most age groups, but are looking to break into the retiree market. Perhaps your products don’t appeal to young professionals now, but you’d like to attract this group.

Sometimes, with a little creative marketing or product development, we can capture an entirely new customer group.

For instance, Coca-Cola’s Diet Coke product had a wide appeal among women. But men were less attracted to it. This prompted the launch of Coca-Cola Zero.

The aim here was to target young, health-conscious men. The company designed packaging for the new product around that target market. They launched a £10m ad campaign to promote it.

Ten years later, it became Coca-Cola Zero Sugar. Plus, more recently, their CEO cited it as being the best growth driver for the business.

Enter international markets

If your business is doing well in the UK, you may be thinking of growing your market overseas. This could help you expand your market reach, become more competitive and increase revenue streams.

It also carries risks and challenges. Starting to grow in this way can be complex and take a long time.

Research is key.

For the country (or countries) that you’re looking at, think about:

The demand for your product or services - You may need to adapt to cater for different cultures, languages and ways of working.
Your sector or market - What does the competition look like there?
Business and trading practices.
Product standards and regulations.
Customs rules and documentation.
Tax laws and tariffs.
Market regulations.
Logistics – How will you transport or deliver your goods?
Currencies – Which ones will you accept from your customers, or use to make payments to suppliers?
Will you pay others to help – For instance, customs brokers, freight forwarders, local suppliers or distributors?

Diversification

This can be more complex, as it involves creating new products for a new market. When you diversify, you’re launching new products or services. You’re often entering new markets or sectors at the same time. So there’s much to research - and much to invest. Equally, this approach does bring key benefits.

Diversification can help you:

Reach new customers – If your current market becomes saturated.
Manage risk – You’re spreading your investments, which can reduce the impact of risk.
Become more competitive – As you widen your range and attract new customers, you can reach untapped markets.
Stabilise the business – There is less dependence on a single product or service.

Examples of diversification

Two well-known brands show how this approach can really turn around a business.

Select the brand to find out more.

Apple expandable section

In the mid-1990s, Apple was struggling. Their competitors in the PC market were producing cheaper and simpler products. Then in 2001, Apple launched the iPod. iTunes software came next. And the iPhone emerged in 2007.

In those early days, people had no idea of what a 'smartphone' was. So the differences between a computer and a phone were huge. But Apple used many of their computer design ideas and resources to build the new devices.

This approach saved the company from failure and helped them grow into a global brand.
Amazon expandable section

Amazon started as an online bookstore. This worked well - there was good demand for books. And they were easy to source, store and send. But after a few years, they diversified. First, into music and computer games. Then other electronics, toys and household items. Now, you can buy most consumables from this site.

The shift from selling just books to other items online was a natural one. But their next move was different. With cloud platforms and smart devices, Amazon became a key player in the tech market. It is now the most valuable brand in the world.

Amazon is an example of two types of diversification. The first was lower risk, as they already had much of what they needed in place. The second was a more dramatic shift, with equally high risks and rewards.

Adapting to grow and succeed

We’ve shown how two big brands have diversified. This approach isn’t just for large companies, though. Sometimes we make a decision to adapt. At other times, outside challenges may prompt these changes.

Think of the challenges that Covid brought, for example. Businesses needed to meet the new ways of living. The ‘stay home’ rule meant priorities changed. We found new ways to use digital tools. We got creative in how we worked. Businesses learnt to become agile and respond quickly to a changing market. It also gave us the chance to think: ‘how can I thrive in an uncertain future?’. This is often the kind of question that prompts growth through diversification. While it may not always feel like it, times like these can inspire you and your business to greater things.

Chapter 2 - Grow in your market

Chapter 4 - Adapt your growth plan

Which methods can reach your goals?

In this lesson, we’ve covered four different ways to re-shape your market.

Select each one to see how they could meet your needs:

Gain more customers in your current market with market penetration expandable section

Market penetration is a relatively low-risk option. You know the market. You know what you're selling there. It's often about changing prices or marketing.
Focus on certain customer groups by segmentation expandable section

Segmentation gives you a way to move into niche markets. It may suit you if you want to give more bespoke products or services.
Extend your reach to other markets through expansion expandable section

Expansion can be a low-risk way to try new markets and locations. You're not changing your products or services here. The risks - and rewards - increase with the size and complexity of the market you want to join.
Launch new products and services with diversification expandable section

This may involve both new markets and new offerings. If you have a clear idea on a new product or service, this may be a good option. If your new offering has features in common with what you have already, this helps reduce both risk and cost.

Each of these methods has benefits and drawbacks. The right one for you will be the one that fits with your goals for growth. It will also need to align with your business vision, mission and overall goals. Keep these in mind as you research your options.

Chapter 3 - Grow to new markets

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How marketing can help you grow

When you think of marketing, what does it mean to you? Is it simply how you promote your products or services? A way to grow sales?

As you grow your business, you need to attract new customers and keep existing ones. Marketing can help you do both.

Supporting your other growth methods

We look at other growth options in this programme. Maybe you have one or more of these in mind for your growth goals already. This chapter helps you to think about how to market these.

Say you decide to expand into new markets. You need to raise your business profile in those markets. If you innovate a product or service, you need to make sure people are aware and excited about it.

You can see then how marketing can be an enabler for your other growth options and a means for growth in itself. Even if you choose to grow using marketing alone, it can help you to target the right customers if done right.

What can marketing do for your business?

Marketing can:

Raise awareness – For more people to buy from you, they need to know about you.
Promote your Unique Selling Point (USP) – Show people why they should pick you rather than your competitors.
Engage your customers – They should remember and think of you, even after launch or sale.
Put data to good use – Your customer data can focus your message.

We covered different marketing options in our earlier Marketing lesson. You may use some already. So let’s start by looking at these, from a growth perspective.

Increasing your tools and techniques

Marketing growth comes from increasing or changing the ways you use your tools and techniques. By introducing more of these, or focusing and refining your efforts, you can make your marketing more efficient. This can then help you achieve your goals.

We’ll look at a few ideas in this chapter. You may already use or know about some of these, others may be new to you.

Pick your channels

Your customers use many channels to find what they are looking for. They hear a radio ad, research online, ask each other for recommendations. Then they may follow up with emails or phone calls to find out more. When they buy, this may be in person, through a website or an app.

It's important you learn what channels your target market is using. Creating more channels that you need can be costly and halt growth. Equally missing opportunities to engage your customers where they can stop growth.

For all your channels – measure what they do for your business and customer. Use this data to inform your choices.

Remember to think about offline channels.

Offline channels

Some examples:

Online channels

Some examples:

Webinars and podcasts.
Content marketing – Try ‘top tips’ articles for B2C, fact-based infographics for B2B.
Social media – There tends to be less competition in the B2B market here.
Email – A popular option, with 84% of B2B marketers using this.
Search engine optimisation (SEO) – This helps you reach the top of the search results.
‘Pay per click’ ads – These work for all, but are more common for B2C businesses.
Customer review sites.
Programmatic marketing – This uses software to buy targeted online advertising space.

For now, let’s look at the techniques you can use across these channels.

Pick your techniques

Select each of these techniques to find out more

Value addition expandable section

Adding value can help increase customer satisfaction. It also makes you stand out from your competitors. For your customers, this could be the deciding factor when they are picking who to buy from.

Try reward cards, discounts for referrals or special offers for repeat customers. These work with both online and offline channels. Think about leaflets with QR codes that link to web deals. You could email customers with tempting rewards.
Cause marketing expandable section

This is where you partner with a non-profit organisation. It can boost awareness for both you and the charity. Your aim here is to show customers you support the causes that are important to them. Plus, it's a way for you to share your core values.

You could, for instance, sponsor a local community group. Maybe you'd prefer to connect online with a charity. Just make sure there's a good fit between you and the cause you're supporting. The support you give needs to be authentic. For example, work with an environmental conservation charity, but aren't sustainable yourself. This could do more harm than good for your reputation.
Lead magnets expandable section

The aim of a lead magnet is to draw customers to you, by giving them something that helps them. So first, you need to work out what they need. Then build your lead magnet. This could be a video, checklist or e-book. It's whatever works for your users. Think about the format that will appeal to them.

You can use a lead magnet to prompt people to visit your website.
Referrals expandable section

Word-of-mouth can be a powerful form of marketing. A Neilsen report showed that 92% of consumers trust recommendations from friends and family more than all other forms of advertising. So it can be worthwhile to invest time and effort on this.

You can encourage your customers to refer your products and services to others by offering rewards. Why not build a 'referral network'? Here, you and others in the network recommend each other, to increase your customer base.

A good example of this is a wedding stationery business, a dress hire service and a florist. They can reference one another in their online blogs and social posts. Offline, they may display printed material on each other's trade show stands.
Co-branding expandable section

Here, you join one or more other brands to promote and sell a product or service. This may add credibility to your own brand. You can then use this to set premium pricing or sell more of your products or services.

The key to successful co-branding is to find the right fit. Look for a brand that offers a different service but shares the same target audience or market as you.

A high profile example of co-branding is Red Bull and GoPro. They already shared markets and audiences. Red Bull often sponsors sports competitions. People use GoPro's cameras to capture the action in this type of event. So they were a perfect fit to co-brand.

Their best-known project was Felix Baumgartner's jump from space, where he broke the sound barrier. Red Bull sponsored his suit, and GoPro recorded the jump from different angles. It gave both brands great publicity.

Chapter 2 - Relationship marketing

Using marketing to grow relationships

In this next chapter, we’ll look at how marketing can help you to manage existing customer relationships and grow new ones.

Relationship marketing for new customers

This is where you focus on building relationships with potential users. The aim is for them to buy from you instead of others. You can do this by giving them content that they want, to encourage them to connect with you.

Content that can work for new users includes:

Blog posts or articles
White papers or case studies
Webinars or online tutorials
Infographics
Videos
Podcasts

The type of content and the tone you use will depend on your audience. Are you looking for new B2B clients? A detailed case study in their sector could interest them. Are you launching a new service for college students? A short video on your social site might appeal.

This isn’t a complete list. There are many ways to make people aware of your products and services. So get creative, have fun and try out different ideas.

Relationship marketing for existing customers

Here, you’re aiming to improve the customer experience. This can help you build loyal customer relationships. It’s especially relevant if you’re planning to segment your market.

You may need to shift your focus, if you only market to new customers at the moment. Turning to your current users can be more profitable. The idea is that the longer your customers stay with you, the more they end up buying from you. Plus, they’re more likely to promote you and help your reputation if they have good experiences.

Tips to build a loyal customer base:

The main thing you need to keep in mind here is growth. How can you use your data to make informed decisions? Data-based decisions will help you to level up your marketing efforts and customer experiences.

Building customer relationships

To have a good relationship with your customers, you need to know them. Every time you connect, you need to be able to see who they are, their experience so far and their expectations. Then you can interact in a way that you know works for them. This is where customer relationship management can help.

It’s all about keeping your customers happy by meeting their needs. This in turn can help to boost your brand, improve sales and increase customer loyalty.

Let’s look first at some ways to help you do this:

Chapter 1 - Marketing for growth

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What can digital do for your business?

There are many digital tools that can help businesses - more than can be covered in this module. Some tools are industry-specific, while others have benefits for a wide range of business.

But what are some of the potential benefits?

Productivity – Digital tools often streamline manual tasks which can increase productivity within teams. They also minimise the risk of human error, meaning you will spend less time fixing mistakes which will free up time that can be spent on other tasks.
Wellbeing – With the increase in productivity and streamlining of tedious manual tasks, wellbeing can be improved in the workplace as employees will have a lighter workload and reduced stress as a result.
Customer insights – Analytics tools can provide you with an easier way to gain valuable insights into the demographics and behaviours of your customers. This can help you make more informed decisions when it comes to selling your products or your marketing campaigns. They can also help you determine the best way to reach your customers.

It's important to note that digital tools don’t create these benefits, but they enable them and make them easier to access. As an example, you can gather customer insights by talking to customers, conducting surveys etc. Digital tools can give you access to more data and make understanding it easier.

Chapter 2 - Increasing productivity

Using digital tools to increase productivity and efficiency

There are a several tool types you can consider for increasing productivity and efficiency in your business.

Let's take a closer look at some of your options. Select each one to find out more.

Cloud computing expandable section
Access files anywhere, anytime on any device

Avoid losing your files and data with automatic saving

Work on files at the same time as others
Lets you store all of your files, software and applications on a remote server, instead of storing them on your computer. This means you can access them at any time and from any device, as long as you have internet access. This can reduce your travel time as you can access your files at home or elsewhere.

It also reduces the risk of losing files and data, through features like ‘auto-save’.

You can work and collaborate on that proposal document or budget spreadsheet in real time, so you have better version control and don’t have to keep emailing content back and forth.

Cloud can seem like a complex topic, but you might already be using some Cloud tools without even knowing it. Do you use tools like Microsoft Office or Google Workspace? If so both of these use Cloud to help allow live collaboration and enable productivity.
Example

If you ran a cleaning company, you could use Cloud to see and update client bookings while on the move.

Want to know more? Our Save time and money with cloud lesson explains what cloud solutions are available and how to pick one to meet your needs.
Communication expandable section
Send quick messages

Host remote meetings

Keep in touch 24/7
These tools let you send messages and receive fast responses which can speed up sales, supplies and operations.

Host remote meetings instead of travelling to meet in person. This can be better for you and your clients, suppliers or investors.

Keep in touch throughout the day, from any location on your smartphone.

Examples of communication tools include Slack, Microsoft Teams and WhatsApp.
Example

If you were a fitness trainer, you could hold classes virtually using video tools to attract a broader audience.
Project management expandable section
Set tasks and track

Set clear accountability

Spot delays and blockers
Project management tools let you assign tasks and keep track of progress through digital dashboards and tools.

You’ll always know who’s responsible for different aspects of the project, and can check this information at any time.

These tools give an overview of the whole project from start to finish, so you can spot delays and blockers early on. This means you can make a plan to resolve these.

Examples of project management tools include Asana, Monday.com and Trello.
Example

If you ran a doggy daycare service, you could use these tools to schedule and assign who will be walking, cleaning, feeding each day.
Marketing automation expandable section
Schedule social media posts

Automate your email marketing

Use chatbots for basic questions
Including tools like social media scheduling tools, email marketing platforms and automated marketing comms. These tools help you streamline manual tasks and processes involved in marketing.

Schedule social media posts ahead of time to ensure you’re regularly posting engaging content and communicating with your audience.

Automate your email marketing. This can include sending milestone emails with incentives on customer’s birthdays or when they’ve been a customer for over a year. It can also include sending automatic order confirmation emails.

Many of these tools will also have chatbot features. You can integrate these into your social media channels or website to deal with basic inquiries from customers.

Examples of marketing automation tools include Hootsuite, Buffer, Later, MailChimp and Drip.
Example

If you ran a craft business, you could use these tools to profile upcoming workshops and showcase new products.
Finance and accountancy expandable section

Store receipts and expenses for easy expense calculations

Generate invoices quickly and easily using these tools

Track your bills to make sure everything is paid on time

These tools are available to help you manage your finances and accounting enabling automation and access from anywhere.

Examples of accounting tools include Quickbooks and Xero.

Example

If you spend hours chasing payments, using an accounting tool to create invoices and automatically generated reminders could help.
Stock management expandable section
Real time, automatic updates on your stock as people buy

Always know how much you have of each item in stock

Reduce your risk of over-ordering any items that you stock
These can help you keep track of all the stock you currently have in your inventory.

You’ll be provided with real-time, automatic updates of stock as it is purchased. So you’ll always know the quantity of each item you have in stock.

Stock management systems can also reduce the risk of over-ordering stock, which means you can avoid paying too much for warehouse space.

Examples of stock management systems include INTUENDI, Jira Work Management and Netstock.
Example

If you run a business where stock has seasonal peaks and troughs, then these systems can help you navigate them.

Chapter 1 - The benefits

Chapter 3 - Gaining customer insights

Tools that can help gain valuable insights

There are various different tools you can use to carry out customer research and gain a better understanding of your customers.

Analytics tools

These may be useful if you’re looking to find customers in a new or different market. Market Finder is a free tool that can help you identify new markets around the world and provide you with insights for expansion. Statista has reputable market statistics including customer behaviour and trends.

Website analytics

Google Analytics is a free data analytics tool that provides you with information about how customers are using your website, from how they found it to which pages they visit. Adobe Analytics is a paid-for solution. It offers similar features, with highly customisable and detailed data reporting.

Want to know more? Check out our Using web analytics to understand your users lesson.

Other analysis tools

Answer the Public can help you discover the different topics your customers are searching for, so you can see what kind of things people are asking about your product, service or business area. Survey Monkey is a survey-creation tool that you can use to ask customers directly about their wants and needs.

Customer Relationship Management (CRM) tools

These tools store, track and manage customer data, giving you a multifunctional tool for dealing with the needs of your clients. Examples of these tools include HubSpot and Salesforce.

Want to know more? Our Getting started with Customer Relationship Management tools lesson gives more details on how to pick and use the right CRM tool for your business.

Chapter 2 - Increasing productivity

Chapter 4 - Customer experiences

How can digital tools be used?

Let's take a look at how different tools can help your business reach and keep customers.

Your website expandable section

You can use Search Engine Optimisation to help your website organically appear in search results when potential customers are searching for keywords that relate to your business. You can also use Search Engine Marketing. This is a form of paid advertising, in which you can pay for your website to be advertised at the top of search results. Both of these methods can help attract customers.

You should ensure your website is visually appealing and easy to navigate to encourage customers to make a purchase on your site. Want to find out ways to do this? Take a look at our Designing your website lesson.
Emails expandable section

Email marketing tools such as MailChimp can be used to send out targeted emails to potential customers. These tools use AI and automation to create, send and track responses to your emails.

Emails can include introductory offers or incentives such as free samples in order to attract and convert customers. The tools can also generate welcome emails to new customers, 'abandoned cart' emails to encourage a customer to complete a sale plus personalised 'thank you' emails after a purchase.

Make sure your email marketing meets GDPR rules. Check out this article from the ICO for guidance on these rules.
Social media expandable section

Social media channels such as Facebook, Instagram and Twitter are often used to build relationships with customers by interacting with them and posting engaging content. Channels often have links to websites or online marketplaces to encourage customers to visit and purchase products.

Our two lessons Making the most of social media and Creating engaging social media content can help you build up your social media profile.
Google Business Profile expandable section

Google Business Profile allows you to control how your business appears on Google Search and Maps. You can provide information about your business such as opening hours, contact details, location and more. You can also include images of your products, a link to your website and reviews.
Automation and AI expandable section

As we’ve already touched on, automation tools include social media scheduling tools, automated marketing comms and email marketing tools. These tools can help you engage with your customers and help you continue building the relationship.

Open AI tools such as ChatGPT and Jasper.ai can help you quickly produce engaging content such as email copy, social media content and blogs.
Chatbots expandable section

Chatbots can enable you to provide 24/7 customer support which can create a positive customer experience and contribute towards the reputation of your business.
Accountancy software expandable section

We also already touched on accountancy software which can help you manage your finances. It can also help you convert customers as it provides automated invoicing and reminders. It can also issue refunds quickly, providing a positive customer experience.

Chapter 3 - Gaining customer insights

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Get started

What do we mean by innovation?

Innovation is a term we use to mean the introduction of new ideas or ways of doing things. This means there is no one way to innovate. At the same time, there are techniques you can use to help generate innovation for your business.

Before we look at the techniques, check out these real-life examples:

Chapter 2 - Ways to innovate

Facts about innovation

Types of innovation

In this lesson, we'll focus on 3 main types of innovation to get you started. We also encourage you to research and explore your own as you go along.

Open each section to learn more.

Product and service development expandable section

Product and service development is probably the first thing you'd think about when someone asks how you could innovate your business. It's the innovation of your product or services. There are three types of product development you should be aware of.

test
	Incremental innovation	Breakthrough innovation	Radical innovation
Incremental innovation Definition	Breakthrough innovation This means you're improving what came before. Making a series of small improvements to an existing product or service over time, to enhance its functionality, usability or efficiency.	Radical innovation This is where a new technology or business model allows for a new product/service. This is a large improvement or innovation that leads to a significant advance in performance, functionality or quality.	Here, new technology and business models combine into something completely new. It's a fundamental change in a product, service or technology that disrupts and transforms existing markets or creates entirely new ones.
Incremental innovation Example	Breakthrough innovation Apple's introduction of the iPhone 12 with a better camera and faster processor compared to the iPhone 11.	Radical innovation Tesla's development of the Model S, the world's first long-range electric car with a 265-mile range per charge.	Netflix took the model of video rental, then used the internet to make it more convenient by sending DVDs directly to customers. They then created the streaming service, changing how we consume media.

Successful product development starts by identifying a need people have or an existing product that can be improved. For example, MP3 players existed before the iPod, but copyright was a continuous problem. Apple brought out the iPod – an MP3 player with an associated store (iTunes) so people could buy high-quality music for their portable devices.

Diversification expandable section

Diversification means moving into new industries. It can also cover the launching of different products/services within the same industry to capture new markets.

Here are some examples:

Disney started as a film studio before moving into theme parks.
McDonald’s started as a restaurant before becoming a franchise and making more money from rent.

Types of diversification
	Related diversification	Unrelated diversification	Concentric diversification
Definition	Related diversification When your business moves into a new industry that has similarities with your existing industry or industries.	Unrelated diversification When your business enters an industry that doesn't have similarities.	Concentric diversification When you aim to grow and develop by adding new products to existing product lines to attract new customers.
Example	Related diversification Disney's expansion into theme parks and media.	Unrelated diversification Virgin Group's diversification from music to travel, telecommunications and financial services.	Concentric diversification Samsung's diversification from electronics to shipbuilding, insurance and construction.

Vertical integration expandable section

Vertical integration means taking control of an element of your supply chain – this could be anything from sourcing materials, manufacturing products, through to distributing and selling your goods and services.

Types of vertical integration
	Forward integration	Backward integration	Balanced integration
Definition	Forward integration When your company controls the distribution or sales channels of its products or services.	Backward integration When your company controls the production or supply chain of its products or services.	Balanced integration When your company controls both the upstream and downstream aspects of its business.
Example	Forward integration Apple went from just making their products and services to opening stores to showcase and sell them.	Backward integration Netflix now creates its own media as well as distributing other people's.	Balanced integration Zara controls everything from design and production right through to distribution and retail.

Chapter 1 - What is innovation?

Chapter 3 - Practising innovation

Why practise innovation

There's no one formula for innovating your business. It's much more about the ability to use innovation techniques in different scenarios to develop and grow. Practice is key. We've put together some scenarios to help you to begin using the techniques we've outlined in a safe setting. Try testing your skills before you apply them to your business.

Apply to your growth plan

Now you understand the range of innovation techniques open to you, think about how you might use these in your growth plan. Ask yourself: how could these techniques help me achieve my growth goals? How do they compare to other options? Remember, innovation might be right for other businesses, but not for yours - or it could be your perfect fit. It's all about properly understanding and assessing all the options in the context of your business.

Chapter 2 - Ways to innovate

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Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide.

Learn for business

Learn for individuals

Growth planning

In this stage

Digital workbook

Choose a lesson

Build your growth plan

Jump to Chapter

What is a growth plan?

How long it takes

Growth plans are different for everyone

Remember

What are the benefits of a growth plan?

Planning for growth

How long it takes

Building from foundations

Looking for growth opportunities

Carry out a 'SWOT' analysis

Strengths

Weaknesses

Opportunities

Threats

Strength examples

Weakness examples

Opportunity examples

Threat examples

Activity

Goal setting

How long it takes

Turning your SWOT into problems and opportunities

A problem statement

An opportunity statement

Setting goals

Activity

Iterating your growth plan

How long it takes

Turning your goals into a roadmap

Things to think about as you grow

How did we do?

Reshape your target market

Jump to Chapter

What is your market?

How long it takes

Know where you are before you plan where you’re heading

Activity

Seeing opportunities

Grow in your market

How long it takes

Why focus on your current market?

Market penetration

Working out your market penetration rate

Using market penetration to grow

Segmentation

Grow to new markets

How long it takes

Why focus on new markets?

Expansion

Open in new locations

Target new customer groups

Enter international markets

Visit the Lloyds Bank International Trade Portal

Diversification

Examples of diversification

Adapting to grow and succeed

Adapt your growth plan

How long it takes

Which methods can reach your goals?

Activity

How did we do?

Use marketing to grow

Jump to Chapter

Marketing for growth

How long it takes

How marketing can help you grow

Supporting your other growth methods

What can marketing do for your business?

Increasing your tools and techniques

Idea

Pick your channels

Offline channels