A business growth strategy is essential to expand new business opportunities. While most entrepreneurs think that growing a business has everything to do with acquiring customers, other methods offer more speedy expansions. But what are business growth strategies?
These strategies embody the techniques and tactics that expand your business. It can involve acquisitions, franchising opportunities, or building new locations. Regardless of the method, the primary goal is to grow the brand. A few factors influence business growth strategies: your industry, target market, location, and change adaptability.
If you want to know what makes a business successful, include these eight surefire ways in your business growth strategy.
1. Identify areas you want to grow
Identify what areas in your business you want to grow. Once you’ve fully grasped what these areas are. It’ll be easier to set your growth goals.
Create a growth plan that will cover the areas you want to expand. This way, you’ll know which strategies to take to cater to those areas. Then determine the “Why.” You want to know why you want to grow these particular facets of your business.
Here are a few examples:
- Expand warehouse spaces (To boost production and cater to increasing customer demands)
- Build new store locations (To target various markets in different geographic areas and disrupt the industry in these locations)
- Create new products or services (To cater to changing customer behaviors and industry trends)
- Increase followers on social media (To grow the website organically)
2. Determine growth goals
You won’t grow your business if you don’t identify two things: What is it you’re growing and why you’re growing it in the first place. Once you know these two components, determine the goal of how much business growth you want to achieve.
The important thing is to align your goals to the results you want to accomplish. Additionally, make your goals realistic and achievable. For instance, instead of saying, “I want to increase customers.” Instead, you can be more straightforward by saying, “I want to increase customers by 50 percent within three months.”
3. Do market research for market development
It’s crucial to determine if growth is possible in the areas you’re focusing on. For example, let’s say you want to expand store locations in specific areas. However, there might not be opportunities in those areas due to competition or lack of demand. That’s why it’s critical to do market and industry research to penetrate the market in particular locations.
Once you identify opportunities, you can sell your products and services to untapped locations and markets. This is called market development.
4. Diversify products
Diversifying products doesn’t necessarily mean creating new ones all the time. Instead, maintain products or services that are a hit with your customers. One of the most effective business growth strategies is adding new features to your existing products. This can attract new customers who were hesitant to use your product due to these lacking features.
Moreover, you can also keep up with industry trends and competitors by creating new products. You’ll expand your customer base by experimenting with new products and targeting a different demographic.
5. Grow organically via new channels
Brands have many opportunities to grow their business online nowadays. One of the tried-and-tested business growth strategies is organic marketing. Getting more organic traffic through SEO can boost your brand’s exposure online. Diversify the channels you want to tap into and communicate with various people on these channels.
6. Build partnerships
Whether you partner with other brands with similar audiences or influencers, building partnerships is one way to grow your business. Online presence is crucial now that every brand is vying for attention online. It’s high time you get on the bandwagon to augment your customer base.
Partnering with brands that aren’t directly in competition means you’ll get access to their audience. And this can open up more conversion opportunities.
7. Acquire direct competitors
Acquisitions are one of the best business growth strategies because it eliminates direct competition. However, this growth method is achievable if you have a considerable cash flow. Once you acquire smaller companies, you also take hold of their customer base. This makes your brand an authority in your industry once you’ve dominated most of the market.
8. Offer franchising opportunities
Offering franchising opportunities is an excellent business growth strategy that eliminates the risk of debts or equity costs. This lets you use others’ resources and lets franchisees open a unit using their capital investment.
Moreover, offering franchising opportunities expedites business growth. Leveraging franchising success opens up more revenue for your brand.
Business growth strategies are imperative if you want to increase profits. First, however, it’s recommended to organize and create a growth plan so you won’t get sidetracked from your goal. Since the industry and consumer behavior are constantly changing, brands should focus on business growth methods to always be in their A-game.