Most of the large scale businesses that we recognize today started as small enterprises; they also encountered all the challenges that small companies usually do; handling them appropriately and adopting the right business growth strategies made them thrive.
There are many internal and external factors affecting a business’s growth, including financial resources, physical resources, human resources, bookkeeping and accounting, Access to natural resources, patents, copyrights, trademarks, etc.
And external factors such as customer demands, political factors, economic factors, and technological factors.
To grow a business, the owner or CEO has to adopt appropriate strategies, and we will be discussing those strong strategies in this article.
Factors that help to grow a small enterprise:
What comes into your mind when you think about small business growth?
It is a general concept, yet there is not an exact answer to it. It’s not relatively easy to define Business growth as it is an extensive concept. You can acknowledge the growth of your business by substantial numbers.
These numbers help in depicting an enterprise’s growth; hence they are called growth indicators. It is beneficial for a situation like this, as there is no clear definition of small business growth.
These indicators play a significant role in your business’s goal-setting; they identify where you are lacking and which area needs more attention to expand your business.
If you have identified your business’s position and want to expand it further, this article could help you. We will be sharing the top 6 Business Growth Strategies so you can generate some ideas for your business and start growing.
Top 6 Strategies to Expand Your Business:
We share the top six business growth strategies to let your small business thrive. You can arrange them as per your business requirements. Do not forget to consider your growth indicators before implementing them.
1. Remove the products and services that are not serving your business anymore.
Removing unprofitable products and services from your business could hike up your profit margin. Analyze each product and service that your company offers; if they do not contribute to the returns, reconsider them. You can either reduce investing in those or eliminate them straight away.
It is pretty common to find some underperforming goods and services in a business. You can also look into the reasons causing them to underperform and opt for the alternatives if possible.
2. Consider the sales funnel.
You can hike up your sales with the help of a sales funnel. You can opt for a codified sales funnel that describes the steps your customers will have to follow before purchasing your product and services.
You can easily recognize your company’s success and downfall, resulting in improving your sales funnel stages. It will also help you prevent confusion and collisions while making sales.
3. Try a strategic partnership to grow your product or sale’s demand.
A strategic partnership can do wonders for your business. Many brands do this today.
You can collaborate with a company similar to yours and hike up the demand (sometimes instantly) for your products and services with something as slight as some other company mentioning your company in a blog post to something as huge as merging your product with them.
The strategic partnership will expose you to your partner’s set of customers.
4. Adopt innovative Recruiting Techniques.
A fortified workforce contributes the most to a business’s expansion; if you evaluate your business’s development by the number of employees you have, the time has come to become more innovative with your recruitment tactics beyond LinkedIn and other platforms.
Carry a business card wherever you go, do not hesitate to hire a potential employee at any moment. You never know where you might find the right candidate.
5. Stay Updated About Your Competition.
Competition is one reason for a business to improve itself; failing to improve your own business to level up to the level of your competitors may cost you your customers.
Ensure you regularly check your competitor’s website and research their ads and campaigns, social media presence, and blogs; make sure you know the latest trends and strategies they are harnessing.
You can learn a lot from other’s successes and failures.
6. Enhance Your Business Portfolio.
You can also opt for the idea of buying an emerging or struggling business with an impactful online presence. You can save hundreds and thousands of dollars from developing a scientific base and content to introduce your clients to your products and services. Instead, you can buy a competitor and use their existing knowledge for the betterment of your firm.
How to Precisely Estimate Your Company’s Growth?
You can identify your company’s growth with the help of KPIs- Key Performance Indicators; these indicators indicate how well or how poor your company is performing.
Your firm’s KPIs rely on your company’s objectives and in what industry you are operating; it is essential to set KPIs for all aspects of your business, such as sales, marketing, finances, etc.
It would be best if you tracked your KPIs monthly or yearly to recognize your business’s strong and weak parts. If you or anyone in your team has accounting experience, it will be an extra advantage for your business. Moreover, if you don’t want to spend more time keeping a track record of your business cash flow, you can outsource the best online bookkeeping services firm that will help you manage bookkeeping, payroll, expenses, and more.
After setting up your KPIs and business growth priorities; you can implement these growth indicators into your business:
- Demand: keeping track of your business’s market demand is essential to expand your business or hire new staff.
- Profit and Losses: you have to assemble some vital financial records like income statements, cash flow statements, etc., to define the profit and losses of your firm.
- Income: a business’s income (profit) determines its growth; the greater the income, the greater the expansion.
- Sales: Understanding the modifying trends monthly will influence your sales and the company’s growth.
- Workforce and Network health: the employees and partners that your firm possesses determine your triumph as a manager and owner.
- Market share: your industry, geographical area, your contribution to the local market can be a supplementary KPI of your company’s growth rate.
A full-fledged evaluation of your business (from evaluating daily operations to annual revenue) identifies your company’s growth and what modifications you need to make with time.
Once you notice business growth strategies and indicators, capitalize them. Do not ignore minor business financing, grab the possible opportunities, and eradicate the growth restraining factors such as bad hires and superfluous expenses.
Once you are done with your research work and got an idea about your business’s metamorphosis, you can seek assistance for numerous no-cost tools and let your business flourish!
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- 6 Powerful Business Growth Strategies for Small Businesses - February 15, 2021