Every small business needs a growth strategy. If you think large chain businesses like Costco, Walmart, or McDonald's started big, you’d be wrong. They started small, and through an effective growth strategy, they were able to expand into massive conglomerates.
Take a step back to analyze your business to see how you can grow. You could always stick with the status quo and naturally grow over time, but taking action is a surefire way to grow at a much faster pace.
With that being said, there are numerous ways you can expand the size of your operation. Let’s take a look at 7 growth strategies for small businesses.
1) Use alternative channels
Today’s small business owner has the pick of the litter when it comes to sales channels (online, direct mail, apps, etc). The beauty of the internet is that it gives small business owners a fighting chance against massive brands.
An excellent growth strategy is to branch out to alternative channels. For instance, if you sell primarily on Facebook, try branching out to Instagram or YouTube. There are dozens of channels to choose from. Find the best one that compliments your strategy.
2) Acquisition of other companies
During an acquisition, one business purchases another, allowing for fast expansion. Acquisition may be the right choice if you’re attempting to enter a new market or expand your current product line.
Acquisitions don’t come without risk, however. You’ll be stepping into a market that’s already firmly established which means you’ll have to win over a pre-existing audience. Have a plan in mind when you approach an acquisition so you won’t flounder when confronted with new products and a new market.
3) Market segmentation
If you’re struggling to find a foothold in your current market, it may need to be segmented into smaller, niche categories. Market segmentation is the reason Spotify is beating Apple Music in terms of popularity.
While Apple focuses on marketing to a mass audience, Spotify focuses its outreach efforts on a small, niche audience (people who are under 30). This niche marketing makes Spotify more appealing to their target audience, and as a result, they have over 50 million users, whereas Apple Music only has 20 million.
4) Leveraging partnerships
There are multiple ways you can leverage a partnership to grow your business. For example, if you’re a distributor, you could form a mutually beneficial partnership with your supplier. Partnerships increase efficiency, reduces costs, and promotes the growth of both partners.
5) Market penetration
Market penetration involves analyzing the market and your product to determine how to increase market share. This strategy is more competitive in nature as you’ll be taking your competition head-on.
One great way to implement this strategy is to offer promotions, such as sales discounts or free items with a purchase. Promotions are effective because they attract customers, both new and old. Lowering the price of your products and services is another effective way to penetrate the market and grow your business.
6) Brand differentiation
Does your brand truly differentiate itself from your competition? What makes you stand out from the pack? Is the quality of your product better? Perhaps you have better customer service. Having something that sets you apart from everyone else is important to your customers, and they’re willing to refer your business to others if you provide value.
Also, be mindful that it doesn’t do you any good to have a brand differentiator, but fail to communicate that difference to your audience. Proudly display what sets you apart on your website and marketing materials.
7) Market development
It helps to step back and look at your product from a different lens. Are there other audiences that you haven’t initially targeted that may find your product or service to be useful? If your market is too niche for you to differentiate, you can still expand your reach by targeting overseas audiences.
Growing your business
Growing your business is no easy matter, but with the right approach you should experience positive results. Focus on the strategies you feel would benefit your business the most and take action today.
During your journey of growth, we’re here to help. Visit One Park Financial today to get pre-approved in minutes for fast funding.