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No matter what kind of small business you run, you’re going
to want to increase your sales and grow your revenue. That’s why so many people
are interested in learning about how to grow a small business.
There isn’t an easy one-size-fits-all business growth strategy for small business owners. But, there are key strategies you can use to give your business the best chance at growing.
Remember, scaling your small business effectively and efficiently can
be difficult. It requires a smart approach and effort from various parts of
your company, including:
- Sales
- Marketing
- Finance
- Legal
And because you’re still a startup, you may find yourself wearing many hats until you can hire expert employees. Although growing your small business will take time and energy, there are 10 strategies you can use to help accelerate business growth.
When you’re looking into how to grow your small business, you need to do market research. The process of conducting market research involves defining your objectives, identifying the target market, deciding on the best research method, designing research tools, conducting the research and collecting data, analyzing data and finally interpreting and using the results.
This not only lets you better understand your
existing customers, but also your potential customers. It’s important to gain
insight into your target market and know what their needs are. That way, you
can see how your business can grow and change to meet those needs.
Don’t forget to research your competitors, too. Knowing what
their strengths and weaknesses are can help drive your decisions on how to
appropriately scale your small business.
Your sales funnel can help take business to the next level.
Think of a sales funnel as a customer’s journey. When they enter your business
or visit your website, they’re at the top of the funnel. When they buy
something or sign up for a service, they’ve successfully gone through the
funnel. You should try to come up with ways to move people through the funnel
to make a sale. This can include offering a discount or getting their contact
information and sending them updates on your business.
It’s not enough to just get new customers for your business.
You also need to keep your existing customers coming back. When you increase
customer retention, you’re building customer loyalty, which can increase sales.
Considering it costs five times as much to get a new
customer than it does to keep a current one, focusing on retaining customers
means your business won’t spend money on something that isn’t a guaranteed
investment.
Increasing your brand visibility can help you attract new
customers and grow your business. A good way to do this is by attending
networking events. Check local professional organizations and don’t be afraid
to attend a few events to get the word out about your business.
Many customers want to do business with a company that
matches their own values. Corporate social responsibility (CSR) means you
recognize the impact your business has on all aspects of the community. Letting
the public see what your business is doing to have a positive impact can help
your business’s bottom line.
Entering a strategic partnership with another business can
give you the chance to reach a broader network of customers or align growth
with strategic goals in your business plan. One example of a successful
strategic partnership is between Starbucks and other national stores, like
Barnes & Noble or Target. The partnership puts the coffee chain into many
retail stores across the country, which increases its reach and revenue.
You may even form a strategic partnership with a vendor to
help expand your business. Whatever type of partnership you form, it’s
important you manage business relationships and maintain effective vendor
relationships.
Business franchising is a common growth strategy for small
businesses. This means you sell your business rights to an independent owner.
Then, they open and operate their own franchise of your business. Many
well-known companies sell franchises, like McDonald’s, Starbucks and Marriott
hotels. When a new franchise opens, it increases the number of locations of
your business, which helps bring in more revenue.
Before you agree to sell the rights to your company, you
have to know if your business is franchisable. The franchising process is more
appropriate for certain types of industries, such as fast-food restaurants or
gyms.
You’ve had success selling your main product or service to customers. After all, that’s what made you think of growing your small business. Now, offering different products or services can help you get new customers.
One business that grew by diversifying its product offerings
is Moment. The company’s initial products included lenses for smartphones to
improve photography. Now, the company has expanded its offerings to include
apps and accessories to use with its lenses.
There’s no question that franchising gives you a chance to
increase your customer base. But if your business isn’t franchisable, there are
alternatives to franchising, such as expanding your business through exporting.
Finding exporting opportunities means you can ship your products and services across the globe.
Take your business global and give your company an
opportunity to increase its market share.
While there are a variety of strategies you can use to grow
your small business, you must measure what’s working. For example, if
you create a customer loyalty program and find it’s not improving customer
retention, you may need to change your strategy. Maybe it’s getting a CRM and
engaging with your customers regularly, or engaging with them through
an email campaign or on social media.
Growing your small business means you’ll have to take
calculated risks. You should look at your business plan and make realistic and
accurate forecasts of how you think certain strategies can affect your
business. Regularly monitoring your progress and making updates are key to
having a successful business.
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