Running a small business is a challenging feat; however, what’s even more difficult is to grow a small business successfully. Many companies stay afloat and make profits, but they don’t know what to do for growth. The best way to develop your growth on growth strategy is to learn from businesses that have done it before you and implement their growth plan in your business.
Here are some such tried and tested business growth strategies you can use:
1. Market penetration
Market penetration is among the least risky growth strategies you can implement to grow your business. It is all about selling more products to your existing customers and finding new customers. Most commonly, companies just create packages that contain more units, or sometimes they share more uses for their product to attract a new customer base.
2. Market development
The next step to growing your business is expanding the market base. This strategy is most effective when your customer base is already exhausted. Depending on your product’s demand, you need to find more geographical locations like new cities, states, or even international.
3. Develop new products
Sometimes businesses find it harder to find new customers for their existing products due to various reasons such as an exhausted market base and poor marketing techniques. In such a situation, the one way to grow your business is to launch new products or services to give your business the boost it needs.
4. Grow horizontal
Sometimes expansion goes beyond developing new product lines or selling more. One of the ways to grow your business is to merge or acquire a competitor’s business. This strategy has two benefits: First, you have a new company to run and profit from. Second, you have minimized tour competition in the market. However, it often requires significant financial investment on your part.
5. Work on the Box Concept:
Try to work on a business concept that is unique at the same time very useful. The best example of this is CreditQ, a Business Credit Management Company which carefully analyzed the market trend and came out with one its kind Business Credit Management portal. Within a short span of time, CreditQ has become the lifeline of businesses. The accurate Business Information reports, trends, analysis and the unique capability of business credit settlement have taken it to the top of the game.
6. Take control of your supply chain
It is not a popular growth strategy; however, it is compelling. In this strategy, you buy one of your supplying companies to control your supply chain better. It helps you reduce production costs and increase productivity. You can also purchase other supply chain components, such as the distribution or retailers if you feel that can help you expand your business.
7. Diversification
Another growth strategy is to diversify your business. Diversification is getting into a new business or product line entirely unrelated to your existing business. For example, if you are a shoe manufacturer, you diversify by manufacturing handbags. It is a risky affair; however, the benefits are extensive.
