Every small and large business, managed professionally or by a family wants to grow. Here in this article, we are going to explore different strategies to grow your small business.
whether a business is product-based or service-based, attaining growth is not that easy. It is tougher for a small business when entrepreneurs run the business with a tight financial budget. Considering a variety of factors like the size of the organization, available resources, current trends, and policies – growth can be achieved through various different means.
It is crucial that each decision must be taken carefully, after conducting detailed market research and based on what makes sense logically.
An organization needs to carefully choose the right area for its growth. Broadly, an organization can follow several different avenues for achieving profitable and sustainable growth.
When the growth strategies are underway, to be able to sustain the new product or service in the market requires constant monitoring. There are various different ways to grow your small business, 10 of which I will mention here.
Top 10 Ways To Grow Your Small Business
1. Market Penetration To Grow Your Small Business
Market penetration refers simply to growing with existing products in existing markets. This can be achieved by attracting new users in existing markets in two ways. One is by attracting and gaining competitor’s customers.
Another is by influencing current customers to use more of the organization’s products/services. Market penetration generally involves the least risk and the deployment of minimal resources.
2. Open Another Location / Geographical Expansion
Opening another location or geographical expansion refers to growing with existing products in a new area or location. This step involves a decision about the target niche, entry mode, and control system.
You should be accountable for the profits and surplus money that you are generating from current locations.
3. Launching New Products Or Services
This is one of the effective ways to grow your small business. Develop a new product in the same target market. This strategy requires good innovation capabilities and market research.
An organization can grow by simultaneous movement into new product and market domains. Launching a new product is, of course, a very resource-intensive strategy.
4. Offering Franchise Or Business Opportunity
Franchising is a very good option to grow your small business successfully. Understanding your business inside out is very much important before franchising a business.
From a startup franchisor’s point of view, the first thing to do is to concentrate on developing a business model and the administrative and legalities that involve in a franchise business.
5. Minimizing The Risk Factors
An important aspect of growing your business is the management of risk and uncertainties associated with a small business. These risks are associated with numerous details like production, development, distribution, and marketing.
However, not all risks require meticulous planning. There are many which can be easily addressed by simply paying attention.
6. Vertical Integration
It may sound tricky but is an effective way to grow your small business. vertical integration defines the division of activities between an organization, its suppliers, distributors, or channel partners and buyers.
It can also be defined as a style of supply chain control. A higher degree of vertical integration would be when the organization takes up further value addition to its finished products to compete with its erstwhile buyers.
Diversification to grow your small business is often considered a major decision for any organization. This move can make or break the prospects of business to prosper.
Yes, it is a risky strategy. But it also dangerous for a business of staying in the same place too long. It has been found that many small businesses have got enough success by diversifying their business.
8. Merger & Acquisitions
Mergers and acquisitions (M&As) are generally considered as an inorganic way to grow your small business. These two are very effective growth channels. A merger is a phenomenon where two organizations decide to come together to form a single new organization.
In this case, the owners of both two organizations become owners of this new entity. The acquisition is a phenomenon where one organization takes over the ownership of another completely.
9. Online Presence
Online presence is now the most essential factor to grow your small business. Focus on that. The Internet is the most effective tool to get a new customer.
Not every business can benefit from investing in a website. However, there are virtually no businesses in the world that can afford to ignore having an online presence.
Whether you use it to research your competition or find opportunities to attract new customers, you need to start thinking about your digital presence and how it impacts your sales figures.
Designing and programming are important, but the most important is quality content that will draw visitors to your site.
10. Social Media Optimization
Social media is generally considered as a technology makeover of a word-of-mouth campaign in today’s world. It is an effective way to grow your small business online.
You can find a large number of potential customers on social media platforms. I t is without saying that they are one of the most cost-effective online advertising platforms that have a global reach. In addition to brand awareness, social media is the best way to draw new visitors to your website also.
Entrepreneurship is not an easy task. It is about building teams to exploit opportunities previously untouched. Small business owners need to manage, minimize, and especially prioritize risks.
Rather than being the attempt of a single person who starts a new venture, entrepreneurship is a team effort where many people come together to support an idea.