Strategies for business growth
In this article you will learn about:
What a business growth strategy is
Why a business growth strategy is important
How to develop a business growth strategy
Ideas for developing a business growth strategy
What is a business growth strategy?
A business growth strategy is a plan that plots the way forward for a business’s growth. Although a business may have other strategies in place, such as marketing strategies, a business growth strategy speaks directly to the challenges that your business may face as it develops. An example of this is having enough stock available to cater for increased sales from customers without running into cashflow problems or holding too much stock.
Why is a business growth strategy important?
Without a strategy to guide its growth, any growth a business experiences may be random and haphazard. On the other hand, with a strategy in place, it becomes possible to control this growth; make future predictions; respond to emerging trends; and weigh up the outcomes of possible responses.
Growth strategies also help you set goals, which are important to provide direction for your business, and make sure that you are in a position to take advantage of any opportunities that may arise.
How to develop a business growth strategy
Important steps to take before you develop a business growth strategy:
Be clear on what your business offers that makes it unique and why your customers need your particular product or service
Define who your customers are and develop plans for keeping your existing customers and finding new ones
Make sure that any actions included in your strategy are based on thorough research rather than snap decisions
Finally, be prepared: many businesses have been forced to shut down because they weren’t ready for the rapid growth they experienced.
Ideas to include in your growth strategy
Potential new sales avenues. Increasing the channels where your product or service can be found gives you new platforms for reaching customers. If you are only selling via Instagram and Facebook, for example, setting up an online store or buying shelf space from another small business, could be a potential new sales avenue.
Target your customer base. Large companies have big marketing budgets which allow them to reach a broader market. Because small companies can’t compete on this scale, it’s a good idea to narrow your focus to a very specific type of consumer. This can help to increase your chances of converting prospective clients into paying customers.
Consider collaborations. Partnering with like-minded companies can help you access new skills and expertise or extend your reach to a new customer base. E.g If you're in the pet grooming business, collaborating with pet supply businesses could help broaden reach and increase revenue.
Invest in systems. This ensures your business is running as efficiently as possible and positions you to take advantage of any future opportunities or react to changes in the market.
Use tools like Google Analytics to access data that will give you an idea of who your customers are and how much time they are likely to spend on your website.
A final thought
It’s important to review and revise your business growth strategy every year, as certain trends may change and your business will have to evolve with them. If this all seems a bit daunting, consider reaching out to a credible business coach with a proven track record in the areas you intend to focus on.
Key Takeouts
A business growth strategy is essential to help you plot your company’s way forward.
