Small Business Growth Strategy – Trying to choose a growth strategy for your small business? There is a big difference between saying “I want to grow my business” and having a strategy to follow to achieve that growth. Fortunately, there are some proven strategies for growing your business. Read on to learn what these growth strategies are and how to choose a growth strategy for your small business.
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Small Business Growth Strategy
The Ansoff Matrix (sometimes referred to as a Product/Market Extent Chart) was created by H. Igor Ansoff and first published in 1957. More than half a century later, it is still used by small and large businesses to determine their attitude to growth.
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As you can see, depending on the combination of new / existing market and new / existing product, you will get four results:
In many ways, this is the easiest way to grow your business, and if you actively say “I want to grow my business” without making any changes, then that is the strategy you are following (even if you don’t know). ). Go to market is where you focus on selling what you already have to the same target market that you already have. This usually means that you will focus on marketing to make more people aware of your service or product and take them on the customer journey until they finally buy it.
If you are not familiar with the customer journey, you can learn more here – How to map your customer journey?
This is where you don’t make any changes to the product you sell, but think of new markets where you can sell. Many times our services or products are more versatile than we think. This is a great option if you have a great product or service but don’t feel like there’s too much potential left in your current target market.
Steps To Creating A Successful Growth Strategy For Your Small Business
It is generally believed that it is easier to upsell to an existing customer or customer than to get someone to buy from you for the first time.
Product Development takes advantage of this theory and says make something new for the target market you already know well and know the customers or customers even better.
This is considered the riskiest way to try to grow your business. You create something new and target new people. Everything is unknown, so it’s risky, but just because it’s risky doesn’t mean it won’t work and give great rewards.
Now that you understand the four different strategies you can use to grow your small business, it’s time to learn how to choose a growth strategy for your business.
Small Business Growth
There is no right or wrong answer when it comes to choosing a growth strategy for your business. All four strategies (market entry, market development, product development and diversification) have enabled businesses to grow worldwide. So it’s not like one is better than the other. However, there are some things to consider here.
If you are considering going down the product development route and doing something new for your existing market, you need to think about the number of customers or clients you already have. If you’ve had a lot of clients or customers before and can think of a great follow-up product or service, this has the potential to be a great strategy for you. However, if you haven’t had as many clients or customers before, a previously “follow-on” product or service may not offer great potential for your business to grow, but the price point doesn’t that you can produce a large quantity. the amount of revenue from that product. few sales.
If you are considering entering the market, you also need to consider the number of customers or clients you have. If you are an industry with a potential of 100,000 customers and you currently have 1,000 customers, then market penetration may be feasible for you. There are 99,000 more people you can target. But if you already have 20,000 players and there are other big players in your industry, you may feel that your potential to gain more customers is low.
There are certainly more risks involved in creating a new service or product, but it’s your business and if you’re excited about creating something new and you feel like you have a great idea, it does sense for you to pursue product development or diversification. .
Steps To Creating A Growth Strategy That Actually Works
Depending on your idea, it should be pretty clear whether you are selling to your existing market or a new market.
Now the thought of adding a new service or product to your business might excite you, but you already have 6 different products and none of them are selling very well. In this case, less is definitely more. A new product or service makes your business, or at least your marketing, more complicated.
Whereas you may offer a service that sells well and have a great system for marketing and distribution. In this example, adding something new to your business should be manageable and offer an opportunity to develop a second stream of income.
If you have a very niche business, you may have a limited number of leads or customers. In this case, it would make sense to try to maximize per capita income. This is usually done by giving them more to buy so you can think about product development. Whereas, if you have a wide target market, it can be valid to focus on continuing the services or products you already have, but marketing them more and generating more sales (market penetration).
Marketing Growth Strategies For Small Businesses You Can Start Today
Some business owners are very passionate about a specific target market. They love the people they serve and want to continue to build a business where they can work with such people. In this case, you will probably choose a go-to-market or product development strategy. However, you can love what you do (like me) and see how your service could easily work for other target markets. For example, I mainly work with coaches and mentors. But I’ve worked with accountants, financial planners, copywriters and web designers and love working with them. I can easily create a service specifically for any of these markets and I love offering it.
I hope that by now you have realized the options you have when it comes to growing your small business. There is no one way, but by thinking carefully about the current state of your business (and the ideal business you want to start), you can decide on the best growth strategy to pursue right now.
It’s worth noting that you don’t have to stick to one strategy forever. For example, you may currently have a business with one service, but create a recurring income stream through membership and a passive income stream through a digital course. However, you may feel that you are being paid well at the moment and can get more customers for providing your current service. So you focus on a go-to-market strategy knowing that within 6 months you will build up your business reserves and then you can invest in building a great membership or digital course.
Right now you have to choose a strategy that will take you to the next level, but once you reach that level you will review your job and then choose what is right to go. take you to the next level.
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In the comments, I’d love to hear what growth strategy you use in your business.
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