For any small business to flourish, growth strategies are an integral part. These strategies involve more than just envisioning the long-term success of the company. With a tangible strategy, not only will your business flourish, but you’ll also be able to knock your competitors down, and establish your brand name in the industry.
If only three out of ten emerging business survive after five financial years, what could be the one that helped those three companies to thrive? The secret to success can be many things, but one obvious answer to this question is growth strategies.
The key with a business growth strategy is to figure out what will work for your company and pour as much fuel to establishing a value proposition. Small businesses can form great strategies by seeking answers to these questions:
- What unique services of product could the company offer?
- Where will the business get new customers from?
- How will the company be able to penetrate into new markets?
Apart from these questions, here are some of the top growth strategies a new business should consider:
- Market Development
While identifying the different applications for your services and products, you can identify multiple markets for targeting the customers. For example, if you are selling a health soap in lifestyle industry, you can also develop your market into the beauty industry. Furthermore, you can set up distribution channel of your products in different cities or overseas.
- Market Penetration
Through this strategy, the attempt is to increase the market share. Several strategies can be applied for market penetration, including promotional offers, and trade and sales discounts which encourages new customers to buy your product.
- Establish value proposition
To make sure your business sustains for a long-term, take measures to set it apart from all your competitors. This can be done by identifying ways that makes your product differentiated, relevant, and credible. Find what special advantages you can offer, and focus on that part only. If you stray from establishing a value proposition, chances are you’ll devalue your business.
- Keep an eye on your competitor
An eagle eye on your competitor will help you position your business properly. No matter which industry you’re in, it is likely that your competitor will have something you might be struggling with. Look at their business strategies and learn what your company is missing out on. Ask how your competitors made different choices, and figure what you can do to tackle them as a challenge.
- Find your strength
Instead of focusing on your weaknesses, try and channel the same energy into finding your strengths. And focus on them. Strengthen what you are good at, and be extraordinarily great at that. Reorient your services to suit your company’s strength, play around to develop it as a growth strategy.
- Product Diversification
Small business used product diversification strategy to enter new market with innovative products. The strategy is seen as high investment, but offers higher returns. You can approach diversification strategy by starting a whole new range of products or services, or you could diversify in the product line your business is currently involved it.
Many companies acquire their competitors with better technologies and innovative measures. For small business, acquisition sounds tough, but it you have the capital amount to purchase a company that can add advantages to your business growth, you must consider acquisition.
- Invest your money in hiring talented people
To a company, no matter how small or large, employees are an asset. So, be very careful when hiring candidates for respective roles. You can save money on office furniture, holiday parties, and marketing budget, but never compromise with hiring someone with low skills. Hire skill employees, pay them decent amount, and retain them as a family member.
- Invest in Digital Marketing
Since the world has gone digital, your marketing strategies should be digital too. Understand the importance of digital branding and marketing in creation of brand image, and invest in online advertisements, campaigns, search engine optimization, and website marketing. All of this will help you create brand identity.
If you follow all of these strategies diligently, chances are your business will gain higher ROI. You could be the next Facebook or OLX in the making.