It is usually exciting for entrepreneurs to set up their own businesses, but excitement alone cannot keep you long in the
business. The big companies you see and admire today didn’t just spring out from nowhere. They grew from one stage to another; till the stage and level, they are now.
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While some entrepreneurs view growth as market expansion, others see it as an increase in sales and revenue. Irrespective of these views, business growth will not be attainable if there are no strategies. Unfortunately, many small businesses fail at this point, as a result of a lack of knowledge on how to build their business strategies.
A Business Growth
Strategy is a detailed plan which represents the technique of action which you would employ to grow your business from one stage to another.
Most businesses go through five life cycles, while others only experience a few of the cycles. These five business life cycles are:
This is the point of ideation and research into market trends, to know how good your ideas are.
This is an opening stage where survival and adaptability are needed. It is also a stage where you would encounter problems, deal with customers, etc.
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Growth and Establishment Stage
This is a stage of outgrowing the issues and challenges encountered in stage 2. It involves finding new ways of improving, buying equipment, hiring capable staff, etc.
This is a profitable and stable stage, but not a time to relax. Here, entrepreneurs ought to explore opportunities.
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Maturity and Possible Exit Stage
This is a stage where the business has witnessed stable income over the years. At this stage, business owners can choose to exit the business or hand it over to someone else.
So, if you’re looking to accelerate your business and enhance long-term success, this article is definitely for you. Let’s get right into it:
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Increase Market Penetration
This is a low-risk strategy aimed at increasing market shares, by selling your existing products or service in the current market. This strategy can be achieved by lowering your prices, using special offers and discounts to attract customers, increasing the number of distributors and business dealers, etc.
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This involves capturing a larger market share by marketing new products and services. This can be achieved by building your services to different packages, introducing new product lines, updating existing products, etc.
This involves breaking out of an existing saturated market and expanding your market shares. Here, market research is very essential to know and understand the new market and customers targeted. This involves selling your products in a different state, country, target audience, etc.
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Employ Alternative Channels
This is one of the best methods of growth and has been made quite easy with the internet in existence. This simply entails adopting a new channel or media outlet, through which you promote your business, increase sales, and connect with your target audience. This involves selling through your website, social media platforms, using paid ads to promote your business, etc.
No business grows by having the entire world as its target audience. Market segmentation has to do with dividing into different segments to fully focus your efforts and resources on a particular sector. You can segment your market by demography, geography, market and customer behaviour, etc.
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Foster Right Partnerships
This entails joining forces with complementary, non-competitive businesses for mutual benefit. This can be achieved through mergers, acquisitions, partnerships with existing businesses, etc. The partnership gives you access to the other business audience, increases manpower, skills, knowledge, etc. However, a comprehensive contract should be in place to secure your business from future mishaps.
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Build Solid Customer Relationship
A satisfied customer is the best advertiser you can ever have. In your quest for new customers, always remember not to neglect existing customers. It is easier to retain a customer and convince them to patronize again than to gain new customers. Building loyalty and trust in your customers entails: regular communication, ensuring great customer service, expressing customer appreciation, giving discounts, encouraging feedback, etc.
Featured Image Source: Invoice NG
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This article was first published on 16th December 2021
chidiogo-akaelu
Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.
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