With the ever-increasing rate of businesses being formed, the need for business growth and expansion also increases. For every business, growth is very essential, especially if such business has a long-term plan.
Business growth can help to attract many benefits consequential to the existence of any business, which includes but is not limited to the acquisition of assets, attraction of new customers, and more access to fund investments. Overall, business growth plays a critical role in boosting business performance and profit.
Your business, when seen to achieve continuous growth, has attained such a level because of some reasons. Before we go into these reasons, it is important that you take note of them.
Important of business growth
If you still have not seen a reason for your business to grow, below are a few reasons you should consider growth for your business:
- Ability to attract the best talents and staff.
- Low cost – due to economies of scale.
- Greater market dominance.
- Greater sustainability or resilience in the market.
- Greater buying or bargaining power.
- Ability to mitigate commercial risks.
- Ability to reduce the threat of competition.
- Ability to survive market fluctuations and downturns.
At this point, you have reasons to grow your business, but you need to figure out how to.
Strategies for Business Growth
Below are some strategies for your business growth
Of course, there are several ways to grow your business. However, it is important to note that the method of growth depends on the nature of your business, the plans you have for your business, the reasons you want your business to grow, and the available resources.
Before you decide which growth strategy to apply, there are two things to consider.
- What do you have to offer, both now and in the future? In short, what are your products?
- Where do you sell, and where do you intend to sell in the future? In short, what is your marketplace?
After considering these factors, we have four major types of business growth strategies that can help your business grow.
These strategies for business growth are as follows:
- Market Penetration.
- Product development.
- Market development.
- -Diversification.
1. Market Penetration:
As the name suggests, market penetration is when you introduce more of the same product to your existing marketplace. This approach comes with its risks but in a minimal way. In short, you are dealing with the same product in the same existing market but in a more significant way.
You should not be surprised that there are risks involved in these strategies. You certainly should have started your business with full assurance of being patronized. Take those risky steps. However, you should calculate the risks involved before you make any move, and that is why more than one strategy is being shared.
2. Product Development
Product Development is another approach to business growth. This entails introducing a new product into your existing business. An example is when you have an outfit brand that has been producing only T-shirts; you can decide to include Cargo pants in your products, and that way, you have just developed a new product for your marketplace. This comes with greater risks than market penetration; however, it is worth it if it is feasible for your business.
3. Market Development
Another option is market development. In this case, what happens is that you introduce your existing product to a new market. An example is creating a branch or subset of your business in a different location/market. Again, this comes with its risk, but as you have been constantly reminded, it is worth the risk if your business has the resources and is ready to grow.
4. Diversification
With diversification, your aim is to sell a different product to a different market. It is similar to market development in the sense that your focus is on a different market, however, the difference comes along with the product. In diversification, your products to a different market are different, hence the term diversification.
As has been stated above, every business is different. You might choose to apply one, more or all of the combined strategies above. It all depends on your product type and available resources.
Another thing to note in business growth is new customer growth. Do you know that one of the key things that promote your business growth is the customer base you have?
To increase your customers, always ensure to keep in touch with existing and potential customers. Also, see to it that your business has value to offer because the more value you offer, the more loyal your customers are.
According to statistics, it has been proven that a five per cent increase in customer base can boost your business profit by twenty-five per cent to as high as ninety-five per cent.(research done by Frederick Reichheld of Bain & Company)
Why? Because almost sixty-five per cent of your business deals come from existing loyal customers.
How to grow your customer base
Below are some tips on how to grow your customer base.
1. Promote your business at all times:
Even on social media platforms, talk about your business and the value you have to offer. Do not assume that everyone knows what you do or offer. Promoting your business should become a lifestyle as that helps to see how much value you are willing to offer to your customers.
Read: Top 10 Strategies for Boosting Sales for Business Owners and Managers
2. Regular Content:
If you have a website, ensure that your content is regularly updated. One easy way of keeping your content fresh is by having a blog on your website. Regularly publish blogs that inform your customer of the latest news from your business, hot topics within your business industry and so on. Fresh content helps improve the SEO of your website on search engines.
Read: 5 Amazing Benefits of Content Writing For Your Business
3. Have an excellent customer support service:
Treat each customer with respect and take appropriate action. When your customer service is satisfactory, happy customers tell others about your business.
4. Keep your customers updated:
This you can achieve by offering newsletters services in any efficient format. This is a means to constantly provide information about your business, and as such, customers and potential customers are constantly reminded of your business.
Read: You Just Lost Another Customer Because You Are Yet to Learn This Customer Service Secret
Conclusion
In essence, your business growth helps you become confident in the promotion of your business as you have value to offer, and this drives you to reach out more.
Never stop growing your business, and your business will continue to attract more customers.
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