Having the appropriate business growth plans and being aware of the stage of growth you’re in will help your company not just survive but also thrive.
What is a strategy for growth strategies?
Simply said, a business growth strategy is a set of techniques or actions you do to advance your company from one stage to another.
Different people will interpret business growth differently. Others view it as the opening of a new location or a market expansion, while some see it as a growth in sales and revenue.
Your business growth plan should be based on market research regardless of how you define growth. You must take into account your company’s organizational structure, the goods or services you provide, and your target market. Along with a schedule to track your progress, you should also list your short- and long-term objectives for various stages of business growth, as well as the growth techniques you plan to employ at each stage.
This is a tactic for corporate expansion wherein two or more companies decide to work together for their mutual advantage. Depending on the nature of your small business, collaborating with another organization can help you easily manage a large project or even transfer information, skills, and technology with little to no financial outlay.
You can also look into cooperation prospects with suppliers and distributors if your firm includes working with them.
Look for a company that isn’t your rival but has a business culture and brand values that are comparable to yours if you want to form a successful collaboration. Consider the reach and standing of potential partner companies as well so you can weigh the advantages.
2. Market penetration
By offering more of your present goods or services to customers in your current market, this growth approach primarily seeks to expand market share. A lot of small and medium-sized enterprises employ this low-risk tactic.
Here are some tactics for entering new markets:
- Charge less than the competition in terms of price
- Offer discounts and unique deals to draw in new clients.
- Volume and bulk discounts can entice existing clients to make more purchases.
- Expand the number of distributors and dealers your company works with.
3. Marketing division
A market is divided into various segments using this company growth approach based on factors like location, demographics, market behavior, or customer behavior. This expansion approach might be beneficial for small businesses competing in markets with larger rivals. You can find and concentrate on a market segment that your competitors haven’t yet successfully penetrated by segmenting the market.
4. Product development
In order to gain a greater market share, this growth strategy entails selling new goods and services in your current market.
Product expansion examples include:
- introducing variations of an existing product; as in a soft drink producer offering its core soft drink in a variety of flavors
- updating a product whose attributes are no longer desirable to prospective buyers
- launching a new product line for your company
- combining your services into various levels and packages
5. Additional channels
Especially in the digital age, using alternate channels is a well-liked small business growth method. It entails leveraging another platform or channel to advertise your company, interact with clients, and close sales.
Alternative channels include, for instance:
- Using your website to conduct online sales
- Taking control of your Yelp Business Page
- Using websites like Amazon, Etsy, and eBay to sell
- Using search engine advertising to market your business
- When you normally sell through retailers, you are selling through wholesalers.
6. Expansion or development of the market
Market development is a growth strategy that might be useful for a developing business that is having trouble establishing itself in the existing market (perhaps as a result of fierce competition).
Selling current goods and services in a new market to gain market share is referred to as market expansion. To achieve the best outcomes, you must conduct in-depth market research to develop a complete understanding of the new industry and its clientele.
Here are a few instances of market development:
- selling your goods or services in a different country or state
- Selling to a distinct target market or segment of consumers
- By offering other companies or people franchise opportunities, franchising
7. Expand your company with assurance.
Despite the fact that many small businesses fail during the first five years, millions of others continue to prosper over time. Applying the appropriate business growth tactics is essential to assisting your organization in thriving, in addition to commitment and ethical business practices.
You’ll be better prepared to select the best business growth tactics to go to the following phase if you can pinpoint the current growth stage of your company—from seed and development to maturity.
8. Set up your business infrastructure
Once you have established the legal framework, you need to set up the physical infrastructure of your business. This includes obtaining a business location, acquiring necessary equipment and supplies, and setting up business accounts with financial institutions.
9. Develop a brand identity
Your brand is what sets your business apart from others in the market. Develop a unique brand identity that encompasses your values, personality, and target audience.
10. Launch your business
After completing all the necessary steps, it’s time to launch your business. Hold a grand opening or launch event to generate excitement and attract customers.
11. Monitor and evaluate
As your business grows and evolves, it’s important to constantly monitor and evaluate your strategies and operations. Regularly review financial statements, customer feedback, and industry trends to identify areas of improvement and growth opportunities.
12. Build strong relationships
Building strong relationships with customers, suppliers, and other stakeholders is crucial for the success of your business. This involves providing excellent customer service, networking, and maintaining open and honest communication.
13. Manage finances effectively
Effective financial management is essential for the long-term success of your business. This includes budgeting, managing cash flow, and minimizing expenses.
14. Embrace technology
Technology can help streamline your business operations, improve efficiency, and enhance the customer experience. Embrace new technologies and tools that can help you achieve your business goals.
15. Stay informed and adaptable
Stay informed about changes in your industry, market trends, and new technologies. Be adaptable and willing to make changes to your business strategies and operations as needed.