Business growth is not about increasing profits, it is necessary to survive in a highly competitive market.
According to the survey, about 66% of companies have passed the two-year operating period and 50% have reached the five-year standard. These indicators are consistent across most industries and emphasize the importance of business growth, regardless of the market in which the company resides.
Business growth strategies set long-term goals and determine how companies plan to achieve them. Expanding store locations, customer reach or product lines and implementing growth strategies increases scale and profits and puts the plan into action.
Business Growth Strategies
Companies that have reached the plateau need to start planning how to drive expansion and profitability. A successful growth strategy must be able to accelerate growth in a sustainable way and ensure the life of the organization.
Companies should consider the following best practices when developing their growth strategies:
Enter the market
Market penetration markets are used to increase market share or exposure for new product lines. Common strategies include advertising, product packaging, special discounts on bulk orders, and competitive pricing.
Cutting prices may seem counterintuitive, but it helps companies achieve their short-term expansion goals. For example, a company launching a new line of products similar to those of its competitors can reduce retail costs, attract customers, increase sales, and build a customer base.
However, if these efforts don’t increase your product’s market share, you can bundle it with a popular product as a free accessory. Once the product becomes known, it can be broken up and sold at regular prices.
Markets Market development strategies aim to introduce existing product or service lines to new buyers or customers elsewhere.
If the market has recently become saturated with similar products, or if attracting new consumers is a challenge, companies should consider launching a marketing upgrade strategy.
Even popular products will eventually reduce sales and profits if the company does not successfully expand into different markets. Nike, for example, was able to expand its customer reach and generate revenue by expanding into the international market.
However, small businesses that don’t have the budget to launch a growth campaign can increase sales by marketing the same product independently. For example, a restaurant may promote a specialty dish through a professional caterer or a local grocery store. This gives the company the opportunity to test the product packaging and find new customers.
Alternative sales channel
Going out and using alternative sales channels is one of the most effective growth strategies. Many businesses already use multiple online marketplaces, but it may be worth considering an entirely different marketing platform.
Email marketing, social media, and business websites are the top three marketing channels available. Only 64% of Small Business Coach Associates have their own website, but most customers expect to see the organization’s website to research their product line.
Email and social media are free tools that allow businesses to create personalized content and communicate directly with consumers. These are great options for beginners who don’t have the money to open an online store yet.
Studies show that having an online and offline presence optimizes business growth. That’s why businesses should consider advertising through social media, Google, and email in addition to traditional guerrilla marketing to increase awareness.
By adding new features and accessories to existing product lines, companies can drive sales and expansion in established markets. For example, Coca-Cola has launched an original drink with a variety of flavor options such as cherry, vanilla and vanilla orange to attract consumer attention.
If your element continues to slow down with new extensions, it’s time to gradually lower the line and introduce a new version. However, to avoid improper investment, it is imperative to research market demand and value before launching a new product line.