5 Business Growth Strategies
It’s a fact that almost 90 percent of new businesses fail within their first year of operations. For the remainder that make it through the startup phase, a further 90 percent of them will fail within the next 3 to 5 years.
If your business has survived the startup phase and you have managed to create some form of stability for your administration, finances, and operations, then it’s time to focus on the future and start planning your expansion.
Growth relies on designing an effective growth strategy that is ambitious yet reasonable. Different business models have different opportunities to grow. Selecting the right strategy for your organization requires the same amount of research and dedication to execution that you used in the startup phase.
Choose Your Growth Strategy
Here are five business growth strategies that could suit your business. Choose the idea that makes sense to you and do your due diligence into its growth possibilities.
#1 Scale Your Business
Do you own a physical location? You can move your business online. A lot of businesses went online over the coronavirus pandemic and haven’t once looked back. By moving online you’ll increase your business reach drastically. It can be hard to establish yourself first, especially if you’re a product based business. You can enlist an ecommerce agency to help you out. They’ll be able to work on your website SEO and ensure your site is compatible with Google and other search engines. They can also help you rank for keywords that will eventually drive sales. Moving your business online and ensuring you have an online impact is a great way to scale your business.
#2 Dominate Online
Does your company have a website? If you do, then are you sure that you are using it to its maximum potential? Speak with an SEO and social media marketing company about designing an online strategy that brings your brand more clients. In today’s world of influencer marketing and social media campaigns, you can grow your brand efficiently and inexpensively.
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#3 License Your Intellectual Property
Does your company sell an information product or a specialized intellectual property (IP)? Consider licensing your product to resellers in the market. Licensing agreements are a cost-effective growth strategy that can yield tremendous results. Collect upfront licensing fees and royalties on all sales by your resellers, without the need to hire a sales team.
#4 Mergers, Partnerships and Acquisitions
If your company is growing quickly and you lack in individual departments, consider buying or forming partnerships with other businesses that can fill in the gaps in your finance, administration, and operations. Absorb your competition and take the best parts of it to strengthen your own business.
#5 International Expansion
Do your brand and products test well in international markets? Take your business global and arrange a consultation with international business and trade consultants. These experts can help you to analyze opportunities in foreign markets and identify the best growth strategies and tactics for building an international consumer base.
Adjust Your Business Plan
Once you have decided on a business growth strategy that suits your business model, it’s time to adjust your business plan with the details of your expansion. Your business plan should act as a guide that gives your company the direction it needs to fulfill its mission. It’s critical to keep it updated with your plans, so don’t leave it on the shelf gathering dust.
Finance for Your Growth
Growing your business will require time and capital. Whoever said that you don’t need money to make money, obviously wasn’t a small business owner. The issue with finding corporate or institutional finance as a small business owner is your credit score. However, as a small business owner, you have probably steered clear of debt in your startup phase.
While this might have been a good idea in the beginning, your company will likely need to acquire debt to grow. Funding growth strategies with business cash flow could end up breaking the bank, causing your business to fail. Instead, visit a lender and discuss business funding that meets your financial needs. Give yourself the opportunity to fund your business growth without jeopardizing your cash flow.
Organize a meeting with your advisers and managers and discuss your growth strategies with them. Once you have ironed out the details and acquired the finance you need, it’s time to get started with your company expansion. The faster you can execute your strategy, the sooner you will see a return on your efforts. Stay committed to your plan and build your firm into a sustainable, profitable business model.