Driving your business growth requires that you come up with options and decide which of those best suits your business.
Even if your business started successfully, growth should never be out of sight. Any business that wants to increases its fortune needs business growth.
Ensuring that your business grows reliably and operates efficiently is not a walk in the park. It takes dedication, skill, courage, and a rock-solid business plan that incorporates viable business growth strategies, tools, and best practices.
Growth Strategies in Business
Many companies have plans to increase their growth, sales, and profits. Nonetheless, for growth to become apparent, there are certain techniques you must adopt.
Growth strategy in business largely depends on the competition, financial situation, and government regulations. Here are some of the common growth strategies in business.
Market penetration is used when a business opts to sell its current products within the same marketplace.
The aim of market penetration is to increase the addressable market. One way to increase the addressable market is to lower the prices. In a market where there is little product differentiation, lowering the price may help increase the market share.
Diversification involves introducing new products to new markets. Diversification can be risky, especially for small businesses. Therefore, small businesses should plan carefully before diversifying. Here, market research is essential to determine whether potential customers will like your new product.
Acquisition refers to purchasing another business to expand your operations. It’s a useful strategy for a business looking to enter a new market and expand its product line. Always have a clear understanding of what you want to achieve with the acquisition strategy as it does require a significant upfront investment.
It entails introducing the existing products to a new market. Market expansion comes into play when there is a fierce competition and no growth opportunities within the current market. Market expansion can also be used when a company finds new uses for its current products. For example, a soap vendor who deals with the retailers may realize that even workers in the automotive industry use the soap.
Growth Tools in Business
Customer Relationship Management (CRM) Software
If you have just one or two clients, you can probably manage to respond to every conversation with customers. However, as your business grows, it becomes difficult to remember every client’s conversation.
With CRM platforms such as HubSpot, you can keep all the information you need to know about your clients in one place. That helps you retrieve all communications you’ve had with each client and take notes for meetings.
Accounting software such as QuickBooks and FreshBooks can help you simultaneously track expenses, pay taxes and send invoices to different clients. The more organized your financial plan is, the easier it is to manage in the future.
Social Media Platform
Social media sites have increasingly become more and more essential as growth tools in business. Hootsuite integrates all your social media accounts in one place. That makes it easier to schedule, publicize, and analyze your Twitter, Facebook, YouTube, and Instagram accounts. With Hootsuite, you don’t have to visit each social media account to update profiles.
Email marketing is one of the most effective tools to help you stay on top of your customers’ minds. Again, strategizing is a key component of a successful email marketing campaign.
You may use services like iContact to help you create promotional emails and newsletters. However, your ultimate success depends on the content of your email, target audience, and the frequency in which you send emails.
Best Practices for Business Growth
Over the years, global competition and a weakening economy have made business growth more challenging than ever. However, some of the most successful organizations such as Apple, Starbucks, and Amazon seem to challenge the economic gravity laws. Here are the best practices that will help you thrive amid increased global competition:
Lean on Customers
As global competition builds up, successful companies have embarked on understanding their customers’ needs. They embrace tools such as the customer empathy map to identify new ways to create value.
Deep understanding of customers’ needs creates vast opportunities to innovate products. Only a few companies invest their time to get out of the office to engage customers. A good approach to understand customers’ needs is to facilitate open communication and allow customers to raise opinions regarding your product.
Find the Next S-curve
Nothing grows forever. Even the best business models, markets, and products undergo a predictable growth and maturity cycle. That growth and maturity cycle is often depicted as an S-curve.
Diminishing returns often set in as price competition emerges, new operating skills are required, the current product loses value, and when attractive customers are reached. Unfortunately, many companies are often blindsided by the S-curve. Once the markets, products, and business models reach maturity stage, it may be too late to lay out the next growth strategy.
The best time to innovate is when the first growth curve hits the point of inflection. Sometimes you may never know when you are hitting the inflection point. Therefore, the best practice is to make innovation a continuous process.
Lead the Way
Unless the CEO prioritizes on an innovation, it won’t happen. Innovative leaders are seen as the role models. Unless they lead the way, growth won’t be realized. Business growth requires a level of risk-taking and testing what works for you. Therefore, the best practice is to create a culture of continuous growth.
In short, it’s up to every business to determine how to grow. Even though most businesses start with a handful of resources, they ultimately outgrow these initial resources. Every business should have a well-thought-out growth strategy.
A systematic plan for growth helps a business identify new opportunities in the future. Real business growth is driven by proven growth strategies, tools, and best practices and using a reliable plan.
I hope you found this information beneficial and feel free to comment down below any thoughts or questions you may have.