Grow Your business with These Successful Strategies
‘Failing to plan is planning to fail,’ says Benjamin Franklin.
To witness business growth, a plan, preparation and communication is a must. A proper setup is necessary to pursue new markets, create new products, or make an acquisition. An approach with a broader-picture objective is crucial while companies craft their strategies. Business expansion depends upon the financial situation, competition, and government regulations.
This article briefs about the common growth strategies in a business and how to implement them.
Business growth strategies
Turning a small business into a big one is challenging indeed. We generally see that most businesses start small and stay there. Only a few make a successful transition from start-up to small to large business. However, staying small may not guarantee the survival of the business.
To expand, a company must design a value proposition, brand relevance, customer experience, and develop long-term strategies. The common business strategies that a business strategist follows in the breakthrough companies are as listed and briefed here.
Sell more products
Selling more products or penetrating the market is one of the least risky growth strategies, where the business has to sell more products to its current customers. It is a strategy generally followed by large consumer goods companies.
For instance, it is difficult for you today to buy a single matchbox. You have to buy a complete box or the one having bigger sticks.
Selling a complete matchbox was a strategy made by some unknown company in the past, right? Small business experts say that to grow the usage of existing products and markets is to increase the market share.
You can lower the price of a complete matchbox as compared to single boxes, or give a compliment like a candle to attract customers and gain an upper hand against competitors. A little differentiation in product selling helps a company to increase its market share value.
Sell in a new market
Selling in a new market or market expansion involves selling current products to a new market. A business has to find new markets for its products to increase sales and profits. At a certain point in the business journey, the market expansion is essential to acquire business dominance.
Most of the fast-growing companies follow this growth strategy to gain a footing in new cities, states, and even countries.
To serve different cities or countries, you may opt for various branches of physical stores and also alternative marketing channels like online marketing, online marketplace, multistore and multilingual websites.
Create a new product
Once you have a footing in the industry, you can easily introduce new products. The branding helps you to introduce products that would get equal attention as your existing products, provided it addresses the customer pain points.
A product expansion strategy succeeds only when a new feature gets added and updated with the current technology, as older products become outmoded. It is necessary to become creative, research what customers want, need and would pay for it to win over the stiff competition.
By now, you have your market footing in the competitive marketplace.
Now, what next?
Do you keep repeating the same strategy?
Moving forward, you can look for integrative growth strategies. A few of them you can start with are as mentioned below.
Horizontal growth strategy
Buy a competing business to add value to your company’s growth and eliminate competitors in your growth way.
Backward growth strategy
Buy one of your suppliers to manage the supply chain, develop new products in a faster and economical manner.
Forward growth strategy
You may look further to buy a company and increase market share, capture new markets or diversify your business. The acquisition strategy gives you established business operations and clientele.
Buy a franchise
Acquiring a franchise helps you with name recognition, gain marketing power, and support the franchise owner.
Franchise your business
This strategy is recommended only if you have a profitable operation that could be replicated by others.
Look for partnership
Grow your business by pursuing a partnership with complementary markets and referring clients to each other.
It is necessary to change growth strategies as a response to feedback from the market. Though the above-mentioned strategies look good to go, timing plays a key role. You cannot plan a strategy for a year and implement them in your time.
McFarland, suggests that you have to follow rapid enterprise design, i.e., think in 90 chunks. Hiring a business strategist holding business strategy certifications would be a nice fit for a company to grow as it plans.
You need to continuously reposition your products and improve efficiency to gain a continued success in the competitive marketplace.