Small Business Growth Strategy – This makes a lot of sense, as statistics often tell us that sustaining a company – not necessarily a huge growth spurt – has been tough for him.
According to the US Small Business Association (SBA), about 20 percent of businesses fail within one year, 50 percent fail within five years, and 66 percent fail up to ten years.
Small Business Growth Strategy
So what’s the secret sauce behind the business growth success stories that small startup owners see in millions of lives?
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But with diligent market research, a solid understanding of your opportunity, and a killer business growth plan, the dream doesn’t have to be far-fetched.
In this article, we’ll look at the concept of a growth strategy, several different types of growth strategies, a game plan for a thriving business, and some examples of growth strategies from smart and successful brands.
A growth strategy is an umbrella term that can cover dozens – if not hundreds – of ways to grow your business and generate more revenue and profits.
Your business growth strategy should be tailored to reflect the unique circumstances of your business, such as:
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In many cases, a growth strategy is as simple as increasing your marketing efforts to better reach customers.
There are many types of business development strategies. We will examine five of them: market penetration, market development, product development, consolidation and acquisition.
The first four are part of a classic business growth theory called the Ansoff Matrix, or the Ansoff Model.
To give a better picture of these five business growth strategies, let’s use the example of a shoe company called Nu Shu.
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One of the most common business growth strategies, market penetration is an internal growth strategy that involves increasing your market share (or getting more customers in your current market) with the new products and services you already have.
Consider Nu Shu’s example: Its go-to-market strategy involves reaching out to millennials to purchase the company’s existing sneaker collection.
Market development, also called market expansion, is an internal growth strategy that involves selling your current offerings into new markets.
Based on Nu Shu’s example, a market expansion strategy might try to sell these handmade shoes to other markets, such as Gen Z.
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Of course, this includes adapting the company’s sales and marketing strategy to appeal to this diverse audience without losing steam in the eyes of its millennial audience.
Product development, also called product extension, is another internal growth strategy that expands or expands your product line to get more sales in your existing market.
Product expansions for Nu Shu could include introducing a new line of sneakers to cater to the needs of its millennial audience, adding additional features to its existing sneakers, or adding sandals to its shoe list.
If you own a dropshipping store, a simple product development strategy can add new products in your niche or related niches until you find something your audience likes.
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Diversification is a high-risk internal growth strategy because selling new products in new markets is a double dose of uncertainty.
Say Nu Shu decides to sell handmade shoes to the Gen Z market. You can see how difficult this can be if they have no experience selling shoes, or selling to Gen Z.
This is why unsolicited advertising is one of the best growth strategies for small businesses. If you don’t have a lot of experience in a particular market, besides not having extra resources to burn, it’s better to try “safer” ways to grow your business.
Acquisition is an external growth strategy where you buy another company to expand your operations. It can be any type of business that suits your long term business growth plans and goals.
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A successful growth strategy means more than choosing a path for your business. A roadmap outlining your long-term growth goals and an action plan to achieve them is also required. Below are some tips to help you get started.
Of course, setting goals is common practice in the business world, but with high growth goals, you move forward.
Typically, you describe goals that require a five to ten year commitment, but they are real, compelling, and something that “all stakeholders can understand” without requiring detailed explanation. .
How many people do you see hiring you in the next ten years? How many customers do you expect at this time? How much income do you expect from your business?
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Loosen boundaries and let your imagination take the lead; your growth goals seem unattainable and ambitious.
Within ten years, the brand in question expects to generate $10 million in annual revenue, and hopes to reach this figure with 20 teams. He also highlighted the extent of market expansion needed to get there. In addition, the brand lists the main actions that need to be taken to achieve its goals.
For most growth goals, you don’t need to worry about the state of your business. You just need to formulate it in a realistic way so that it’s easy to develop strategies that help achieve it.
For each growth goal, there is a key set of metrics that will help determine whether or not your company can achieve that goal. In most cases, the metrics will have a direct relationship to your company’s revenue and customer acquisition goals.
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For example, if we talk about the car sharing company, Uber, one of the key metrics is the number of trips made. Why? Because it directly affects the bottom line of the company. If more trips are completed, and this number continues to grow, it means more customers are converting and therefore contributing to Uber’s overall revenue.
You also need to define your current roadmap for those metrics, so you can identify the steps you need to take to achieve business growth.
In the hypothetical example from the previous point, we decided that one of the company’s growth goals was to make 10 million dollars and one of the steps to achieve this goal was to increase organic traffic to 3 million visitors per month.
Therefore, if we wanted to determine key metrics for BikiniThatSlays’ growth goals, we could create year-by-year lines around organic traffic and retention rates.
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As you can see, the company needs to increase its organic traffic by 100 percent annually for the next ten years to get 3 million visitors per month and increase its annual revenue.
When building your growth strategy, remember to identify the key metrics for your growth goals, and how your profits will need to be transformed to meet those long-term goals.
Once you know your growth goals and key metrics, the next step is to create a plan that makes it easy to visualize the journey to achieving those goals in your growth strategy. The best growth plan is a specific set of strategies and steps to take to implement those strategies to help achieve your business goals.
Continuing the BikiniThatSlays example, the growth plan will highlight the key steps the company needs to take to increase organic traffic and customer retention rates, which have been identified as key indicators of business growth.
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To achieve a ten-year traffic goal of 3 million visitors per month, for example, a company needs to increase its organic traffic to 600,000 visitors per month. Therefore, the growth plan outlines the small steps that BikiniThatSlays needs to take to reach this traffic figure.
Since there are many ways to drive organic traffic to a website, this aspect of a business growth strategy includes all the steps a business can take to achieve its traffic goals, including publishing new blog posts, creating YouTube videos, and collaborating with influencers or guests. bloggers.
When developing your personal growth plan, make sure you list all the steps you could take on a smaller scale to have a positive impact on your initial growth goals. Additionally, conduct quarterly assessments of your progress to ensure you are on the right track and keep your growth strategy motivated. Example of a growth strategy
When it comes to fashion, clothes can be in the news yesterday the second they hit Instagram, so what the Black Milk Clothing brand has done is completely ignore industry conventions – by not following trends or seasons and not even attending fashion parades.
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Instead, the brand follows an internal growth diversification strategy by making leggings, swimwear and clothing featuring popular movies, franchises and comics. It also publishes several new designs every month, and most of these articles are based on what is popular among the company’s potential customers.
In terms of marketing, Black Milk Clothing allows its community to spread the word about its business. For example, you will find user-generated content if you search