Growth as an important factor for a successful business
Growth is key and necessary for a prosperous business to attract investors and market analyst.
For a business, growth is basically making the company better-quality, development, increasing the company's market and making it profitable. Growth also means adding capitals to your business at the similar way you are adding the revenue. It is never easy to turn a small business into a bigger and successful one. Being able to calculate how fast your business incomes will grow allows you to define its actual worth.
Why is business growth important?
If you have chosen growth to be your main concern, you need to plan carefully. Growth has its risks, just like any other factor of success. However, the right growth strategy or tactic can provide long-term profits, security, and solidity.
As your business moves past the start-up phase, it starts to change. The priority of the business then changes to pinpointing growth prospects to ensure its stability. Some aspects of business growth include
- The sums of sales made over an exact period of time
- The total profit made year-on-year
- The number of employees you adopt and the tasks they have
- What products and services have you altered or approved
Measuring all this differs from a weekly to yearly basis. However, it is dictated by which parts of your business you are evaluating for growth. Business growth is very essential since your organization will face competition from time to time, therefore, by not growing your organization, or let's just say, by staying small, you are giving other companies the opportunity to take the huge share of your market and of course not forgetting its position.
Apart from losing your position and share, there are many other risks that you can face with your competitors if you fail to expand and develop your company.
- You will lose great employees who want to develop
- Your rivals will grow
- You won't be able to generate an extra job opportunities
- The company's revenue will stay the same or even shrink
- You will miss the chance to expand
- Customers will go for rival services and products
The list is endless. You need to grow your business if you want more opportunities for your employees. This is one of the reasons as to why business growth is very important. Apart from stabilizing some of the dangers that can damage your organization, growing your business has several other advantages like;
- The ability to access a wider range of audience
- Having the ability to attract new talent and skills to your business
- You will earn more loyalty and trust from your current clients
- Improved profits and market share
Developing growth strategies for your organization
Developing business growth strategies is substantial in the growth of your business.
Market segmentation; define your perfect clients
Things have changed a lot since you started your business, including your target market. You get to know better who is more interested in your products and services as well as getting to know what works best. Look for new places that you might have missed in the first place. Learn more about your perfect type of clients, what they are interested in, how much they are ready to spend. This information will help you market to target clientele.
Diversification; market development
This is another way to grow by expanding the types of products and services provided by your organization. This can open you up to more markets and wider audience. You can start offering your products and services to clients in another city. There are several forms of diversification including;
- New products for new markets
- Getting new markets to existing products.
- Introduce new acquainted products to the current clients
Diversification could take many forms. You can effectively grow your market influence from a national to global customers by vending through your own site or to third party sites, for instance, eBay or Amazon.
Develop new products for new clients
There reaches a time when marketing situations order that you offer new products to your new clients. Let's say you are operating a successful business vending women's clothing. You may offer new products to new customers, maybe grow your products offering to include shoes and jewellery among other goodies. To expand your consumer base, you may need to start vending children's clothing as well as men's wear. Rigorous growth strategy steps come with ambiguity, risks, and efforts. Therefore, it could be best if you introduce new products to your existing customers. This is less risky, in that you won't have to learn about a new product and a new market at the same time.
How are you supposed to know what you are offering or doing well if you don't ask it from the users? Users help you improve your goods or services. The feedback you get from your customers helps you to further division your record and deliver a more personalized service.
Improve your sales and marketing system
The best growth strategy for small businesses is to schematize the way you distribute your products or services to your customers, sales, and marketing.
Invest in talents
Hire a team that is enthusiasts and is inspired by the value scheme of your company. Your workers are the direct relationship you have with your customers. The chances of misunderstanding are bound to get higher if there too many team members. Hire a few workers and pay them well. Make sure that each and every one of them has a great understanding of what their role is.
An acquisition is where a company buys another company in order to expand its operations. This is a good expansion and growth strategy for small companies because it results in the expansion of its products line as well as entering new markets. For this to be successful, a company must get their goals clear because acquisition requires significant investment to implement it.
This is another growth strategy that has proven to be effective. Start by following partnerships with other companies; you may start with a casual agreement between businesses in complementary markets to refer clients to one another
Recording your growth strategy is one of the first steps to grow your business. Investigating and documentation might take some time; however, the upfront investments will be worth it in the end.
About the Author: Helen Cartwright
Helen is a passionate blogger, who excels in the Digital Marketing and Technology niche. When not wired in marketing strategies she ghost-write for a variety of authors who have their work published on leading online media channels such as The Huffington Post and Entrepreneur.com