Most small companies have big ideas when it comes to growing their business. However, not many have the know-how it takes to turn those ideas into actionable steps towards realizing their business growth goals. In addition to this, the method a company uses to expand its business is largely contingent upon its financial situation, the competition, and government regulation.
While every business and industry is different, each presents with its own unique opportunities and threats. Whether you are running a high-end sushi bar or breaking into the tech industry, here are 7 business growth strategies you should consider for your business.
1 Introduce a New Product to Market
You have a successful product or service that you have been offering for a while now. You have been collecting data, customer feedback, and doing the necessary tinkering on your newest product. This is a normal evolution in business, not just an expansion tactic. When positioned as adding value, and being responsive to customer needs, this can be a relatively safe way to expand.
2 Increase Your Sales in Existing Markets
In your grand quest for world domination, consider finding ways to increase your sales in your existing networks. While this may seem like an easy task, be strategic and look for ways to revolutionize your pricing strategies, marketing techniques, and consumer value add.
Is there perhaps more than one use for your product? Think of coconut oil and its whole host of uses in cooking, health, and beauty.
3 Franchise or Start a Chain
Some businesses are easily reproduced – think restaurants, retail outlets, and hotels. However, be cognizant of what made your first location a success. What it your physical location, was it you, or was it your staff?
Carry out your expansion meticulously through detailed action plans, rigorous training, and selective employment. The objective is to replicate your business from the bricks and mortar and right down to management ethos.
4 Join Forces / Make Alliances
Mergers and acquisitions are how many corporations expand successfully, as it combines the best of two companies. The trick is finding the right partner, who shares your vision and expectations.
Due diligence and strong contractual arrangements are essential here. Ensure you meet with top management and ask to see financial records before sealing the deal on paper.
5 Develop a New Market Segment / Geography
Moving your product into new categories or demographic segments requires market research, beta testing and new marketing strategies. In other words, the message you chose for a teenager would need to be different from that for a pensioner.
Management of new locations requires a lot of time, attention and investment. But, while the risks are higher, the payoffs can be large for most businesses looking for expansion opportunities.
6 Work Through Agents, Distributors or Buyers
Working through export managers, sales agents or trading houses gives your business access to foreign markets, while still staying in control of the sales and terms. These intermediaries help you build your export expertise, and provide you with information about new trends or market changes.
Alternatively, you can fill orders with local buyers who export. This is a low-risk method but does mean you will serve a passive role in the research and negotiations.
7 Get Investment or a Loan
Many businesses will only be as big as their budget. Sometimes, in order to fully realize your business’s expansion potential, substantial capital is required. And sourcing that capital means pitching to investors and filling in loan applications.
If your business needs expansion capital, consider using the services of a financial marketing firm that is dedicated to placing growing brands in investor circles.