Many of us have successfully discovered the enthusiastic entrepreneur within us, arranged for funds, started a venture, finetuned the resources, and earned satisfying profits.
Eventually, we realise that our business growth curve has flattened, and the net return and profit seem to be constant. Start-ups and small business units are going through a hard time, and it is essential to reinvigorate their growth and gear up the business activities.
Companies possessing small business accountants are not ready for taking abrupt moves involving high risks and funds. The bitter truth is that if you do not take any action to revitalize your accounts, then the cut-throat competition will scrabble down your sales, and your profits will start decreasing. You don’t need to get intimated if your business growth reaches a cease point. Instead, you must figure out some strategies that can boost your business performance.
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How can a feasible growth strategy assist a small business?
We are aware that businesses usually have limited funds. Therefore, the strategy must optimise assets utilisation while balancing risks and rewards ratios.
It is often the case that the stakeholders focus on maximising the revenue. Instead of accelerating revenue generation, more attention should be given to scale-ups. Focusing on a particular aspect achieves increased resource allocation and production.
Six Growth Strategies for a Small Business
1. Adopting Unconventional Sales Channels
The old-school sales strategies like hoardings, newspapers advertisements, news channel announcements, television or radio advertisements, posters in public transport are good but may not be sufficient.
They might increase the sales by a certain percentage, but that is not enough. Nowadays, everything is digitalized. Hence, we must leverage online channels such as:
- Create a digital marketing team for e-mail marketing, blogs, social media handles which should be specific and customised.
- Create a profile on social media platforms and stay active. You can post updates about any new product go for cross-promotions, collaborations, giveaways for engaging audiences.
- Actively participate in virtual forums related to your business or niche.
- Participate in trade fares and target potential customers.
- Look out for people and entrepreneurs from the same field and go for arranging podcasts or live events.
- You might organize quizzes or games virtually and give out some goodies for brand promotion.
2. Market Penetration
Market penetration strategy is a straightforward yet influential strategy for business growth. It intends to increase the market share of pre-existing products or launch a service or product in the market.
This includes techniques such as:
- Offering discounts on products and services to attract more customers.
- Organizing sales and combo offers for increasing the sales
- Providing coupon codes to customers that can be redeemed on the next purchase.
- Offer heavy discounts on bulk orders to clear competition.
- Launching small trial packs or free trial sessions seasonally.
In the beginning, reducing prices might seem to be unappealing, but it will assist in achieving the company’s short-term expansion goals. If you aren’t ready to launch new products, you can converge your focus on promoting your home products.
3. Retaining the existing customers
When targeting new customers, you must not forget the existing customers. Do not offer too many sign-up or new user offers, and forget about your customer base.
Always focus on retaining your customers. You can do this by uniquely marketing the usual products. Sales and marketing will only increase revenue if you can retain your previous customers while seeking new customers.
4. Market Segmentation
Market segmentation is yet another effective small business growth strategy.
Despite considering your customers to be uniform or clubbing them into a single group, you can segregate them and the target market based on certain factors such as order history, hobbies, customer preferences, geographical locations, behavioral attributes, and other characteristics.
Such segregation allows you to split the target market into segments. You can classify based on the following characteristics:
Market segmentation helps you carry out detailed studies of the market and organise personalised campaigns. These specific programs will lead to a higher rate of success.
You might collect information by analysing feedback surveys, order history, and billing information. You may even go for a CRM (Customer relationship management) tool to achieve better results in a shorter time.
5. Acquisitions and Joint Ventures
Many a time, collaborations, acquisitions, or joint ventures with another viable business is an excellent strategy for small business growth.
Considering your business domain, partnerships may benefit you with additional resources regarding human resources, skilled labour, equipment, or contemporary technology and increased market share. Otherwise, it can also be a joint venture in which both companies mutually benefit by increasing their sales without competing.
For example, professionals such as carpenters, electricians, and plumbers may come up with a joint venture for helping one another to attain a more extensive customer base by serving as home or office maintenance units as a combined service.
Consumers will also benefit as usually these services are needed simultaneously and can save both time and money. This initiative will bridge the gap between the three services and eliminate service delays.
6. Innovation and Diversification
You must make sure that your product is unique and stands out among its competitors. Be vigilant; you need to check out all the products of similar kinds in the market. If the product appears to be the same, you need to work on the packaging or offer combo deals.
Go through the customer reviews and ratings and take their suggestions for improvement. Always include a review and feedback window in your production lifecycle.
For example, You might notice that some people prefer eco-friendly glass bottles over plastic packaging or body lotions with a dispenser have a higher demand as they are spill-free. Study your audience and form solutions around their need.
Developing strategies for small business growth is a dicey concept. Therefore, we have created this guide to give you a helping hand. You can try to inculcate all six or any strategies mentioned above to boost your business revenue in the upcoming months.
Even amidst the pandemic, you can achieve increased profits, significantly impact the market, increase your production rate, and outshine all your competitors. You need to gear up and adopt a viable business growth strategy. The scalability and kind of your business don’t matter; if you can get a broader picture of the market, you can develop workable strategies.