Most businesses are focused on survival during their initial few years of operation. Prioritizing your company’s growth, on the other hand, is one of the finest methods to boost the odds that it will not only survive but also contribute to your economic well-being and a secure financial future.
What can you do to take your company beyond the point of subsistence? What can you do to transform it into the revenue-generating machine you envision? There are numerous growth tactics that you can pursue, just like any other aspect of running a business.
1. Retain Existing Customers
Getting new consumers isn’t the only strategy to expand your company. Many times, your existing customers are your best hope for expanding sales, and studies have shown that enhancing customer retention also increases a company’s worth.
Customers who have previously purchased from you are more inclined to do so again, especially if they had a favorable experience with customer care. Capture one-time clients’ contact information and shopping preferences. Then, use that data to create marketing techniques that will turn them into repeat consumers.
Implementing a combination of methods to both retain and gain new consumers is likely to deliver the best growth for most firms.
2. Request Referrals
Of course, recruiting new clients to your business is always a good idea. One method is to solicit referrals from current clients.
These consumers are already in your target market, which means that others in their social or professional circles are also in your target market. As a result, they have a powerful entrance point to new customers.
However, presuming that your consumers are spreading the word about your company will not result in an increase in your customer base. You must actively seek out referrals. Depending on the nature and size of your company, you can:
- Inquire if pleased customers know of anyone else who might be interested in your products or services.
- Use a discount code to reward referrals.
- Customers should be encouraged to post and tag your brand on social media.
3. Keep Your Costs Under Control
Increasing your bottom line is essential for business growth. If you increase your market share while increasing your costs, you won’t have any money to invest in your firm or generate a profit.
So, while you explore for opportunities to expand, consider the costs of running your business and delivering your products or services to clients. Lowering these expenses might be an efficient strategy to provide your company with the cash flow it requires to expand and stabilize. There are two basic techniques to cost reduction:
- Selling low-earning products or discontinuing low-performing services
- Increasing inventory turnover through innovative marketing and sales strategies
Take cautious not to cut costs to the detriment of customer service or employee pleasure. Both satisfied consumers and motivated workers are important drivers of corporate growth. Even if they provide you with more cash flow in the short term, cutting expenditures in these areas can ultimately hurt your company’s potential to expand.
4. Increase Your Market Reach
There are various ways to expand your business by introducing your product or service to a new group of customers.
- Open new stores: New stores can also be virtual, such as a website with an online store. This allows you to introduce your goods to new customers in a new market.
Identify a new demographic: Determine other groups that could use your product in ways similar to your initial target audience. After identifying a new market, you can promote in media that targets that market or develop custom marketing campaigns.
- Encourage innovative applications for your product: Discovering and advertising new ways to use your products or services allows you to persuade current customers to purchase more. It can also assist you attract new clients who may require your items for a variety of reasons.
All of these methods assist you to increase your market share. This not only raises sales but also strengthens your business concept. When you do not rely just on one type of target consumer, you are more likely to endure market shifts.
5. Conquer a Specific Market
If you don’t want to enter new markets or add new services to your revenue stream, you can build your firm by focusing on a single specialization. This provides you with the chance to become a “big fish in a tiny pond.”
A niche is a specific set of clients. Look for a portion of the wider market whose requirements aren’t being satisfied, and then focus on addressing those unmet needs on a constant high and accessible level.
To achieve long-term growth, choose a niche that either:
- Has enough interest that your target market is large and frequent transactions are generated
Allows you to price your things at a high enough level to survive or make less sales.
- Expand Your Product or Service Offerings
Building on similarities is the key to developing your business through diversification. You should do one of two things:
- Concentrate on products/services that are similar to those you already sell and address the demands of the clients you presently serve.
- Concentrate on new market groups that have similar wants and characteristics to your current clients.
An artist, for example, may also sell frames and framing services. In the winter, a company that leases mountain bikes in the summer may transition to renting skis and snowshoes. Small modifications implemented gradually can help you to vary your offerings and attract new customers without overextending your firm.
6. Create Franchise Opportunities
If you have a successful business and can create a structure that ensures others can replicate your success, franchising could be the fastest way to grow your company.
A brand with broad appeal across multiple geographic locations, as well as a business plan that can be easily replicated, are required for successful franchising.
To establish a franchise, you license your company concept, process, and branding to franchisees, who then offer your branded products and services in their own location under the same name as yours. This helps you to broaden your market reach into new areas, build stronger brand recognition, and generate new money through franchise licenses and locations.
7. Continue to Exporting
Expansion into international markets can also provide a significant boost to your company’s bottom line.
This, like franchising, is a method of expanding your business by gaining access to new clients in various geographic places. It does, however, necessitate a significant time and resource commitment.
Expanding globally might be legally challenging because you will have to deal with commerce and customs legislation from several countries. Depending on your goods and the country to which you desire to export, you may additionally require an export license. 6 However, if you have the time and finances, exporting your product allows you to expand into previously inaccessible regions, generating enormous prospects for growth.
8. Choose the Best Growth Strategy for Your Company
Finding the right growth strategy is dependent on the stage of your organization and the resources you currently have. Consider your available resources, such as money, time, experience, or employees, as well as your present market, business goals, and client interests.
Not every plan is appropriate for every company or will appeal to every business owner. To begin, follow these steps:
- Choose one or two concepts that are suited for your company and circumstances.
- Based on that strategy, create a new business plan.
- Establish goals for growth, expenses, and revenue.
- Keep track of these milestones on a regular basis to gauge your development.
- While you may not notice immediate results, you will see improvement if you continue to apply your plan carefully and consistently. If one technique fails, be prepared to take a step back, devise a new strategy, and try again.