Small Business Strategies For Growth – According to the World Bank, small businesses account for 90 percent of all businesses worldwide and more than 50 percent of the global workforce. In addition, in emerging and established markets, small and medium-sized enterprises create 7 out of 10 jobs.
Although their incremental contribution is small compared to large global enterprises, they help create new business opportunities, develop the tax base and growth, boost local and national economies, and are a powerful source of growth.
Small Business Strategies For Growth
So, is it any wonder we rarely see small business growth stories? What’s holding them back?
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Much research on small business growth (and failure) over the past three decades has linked these to factors such as regulations, economic conditions, access to technology, and business practices.
Without a growth strategy, your business and sales team will likely react to changing market conditions and not be prepared to ride the waves or grow sustainably.
Although small businesses face serious limitations compared to large businesses, they have experience that helps them implement growth strategies more easily.
To that end, this article will focus on the 4 best growth strategies to help small businesses grow purposefully.
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Innovation is where your business is thoughtful and transforms it into new solutions to value your audience.
Radical innovation involves the application of new ideas to new markets, sometimes even creating new industries.
Innovation involves taking existing ideas, strategies or solutions in one field and applying them to a new market.
Disruptive innovation involves creating new solutions to serve existing markets. As markets already exist, practical solutions can be better tested for scalability.
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In fact, ideas are the generation and communication of the origin of thought and creativity, choosing the right business ideas, refining them and implementing them in business.
Innovation is the foundation of industrial growth. Small businesses can work on ideas and innovations within the organization to keep research and development costs low. They can
Profitability is the success of converting the value offered by a business to its customers. Finding new sources of revenue can be done by restructuring existing models or implementing new ones.
It is common for businesses to improve or change their existing monetization strategies to stay current and simplify things.
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A subscription model is where customers pay a recurring price, such as monthly or quarterly, for products or services.
A pay-per-use model, or transaction-based monetization, is where customers pay for each use or for multiple or temporary uses.
Here, the business transfers all or part of its profits to someone else. In essence, the third party is paid out of predetermined revenues as part of the commercial agreement.
It is similar to a license, but the difference is that organizations can use the brand and marketing strategies of the main company. A parent company makes money by allowing multiple entities to offer its product or service to customers.
Small Business Growth Strategy Archives
Maintaining business stability is critical. However, in volatile markets, investing in growth is more important than trying to conserve dwindling resources. They can
A commonly used strategy, strategic partnerships can help expand capabilities without the hassle of investing in internal talent and assets. In addition, businesses can reduce risk, become more efficient, and adapt more quickly to changing market conditions.
Corporate agreements are where two or more entities legally enter into an agreement to form an independent business entity that will pursue a common goal.
– Joint ventures are formal partnerships formed for contractual arrangements to pool resources, materials, talent, and products/services to achieve a specific goal.
Business Growth Strategies For Small Businesses
In a JV, a small business can partner with another business to create a new business to expand its capabilities.
– Microsoft’s smart health products with Sony and Ericsson for mobile communications, General Electric GE’s health-related technologies to form Caradigm.
Mergers and Acquisitions (M&A) – where two businesses merge to form one company. A merger, also known as a “merger of equals,” is where two companies come together as a single entity, where one company takes over the other.
Small businesses often have little capital and growth plans depend on their financial situation. Small businesses today have many options to support their business plans and growth strategies.
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Bootstrapping – Raise money by selling real estate, taking out low-interest government loans, or borrowing from family and friends to finance your projects.
Seed Funding – A decade-long trend, seed funding is where investors seek investors by selling a stake or entering into entrepreneurial ventures. Seed funds are distributed according to the required quantity and tracking records.
– GGV Capital has invested in Airbnb and Slack, Sequoia Capital has invested in Indigo Paints, SoftBank has invested in OlaCabs and WeWork
Bank Loan – The most popular example on this list, bank loans are offered to overcome obstacles such as financing, time and credit to invest in small businesses.
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Choosing investments and funds is a new process. This is because “If my business plan and monetization plan makes sense, I will find any investor. It’s a better option than taking a bank loan or selling my property.”
This strategy focuses on existing products or services and business development in the current market. What differentiates this strategy from point 2 is the consideration of competitors.
Here businesses expand into new areas and target new customer segments to sell existing products/services.
Therefore, a growth-oriented approach requires a change in management not only to improve planning and operations, but also to try to solve the problems faced by employees.
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Essentially, a new exercise means bringing in the right talent and facilitating change. While hiring consulting firms or individual consultants can be expensive, it isn’t always the case.
No matter what business you’re in, you always want to make sure your business is successful. But this is not just a temporary problem. Growing a business is an ongoing process and requires hard work, patience and a smart approach that keeps your business going. So let’s take a look at some tips you can use to give your business the best chance to grow.
Market research helps you understand not only your existing customers but also your potential customers. Understanding your target market and knowing their needs is essential. This will help you figure out how to grow your business and make changes to meet those needs. Additionally, research your competitors and their strengths and weaknesses to guide your decisions about how to grow your business.
Before you expect your business to grow, you need to make sure you have the right team in place to achieve your business goals. When your employees work toward a common goal, your business stays on track and continues to grow. In addition, by delegating tasks to the right people, you can free up time and energy and help push your business to new frontiers.
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The sales process is the customer’s journey with your business. When they enter your business, it’s at the top of the funnel. When they buy something or sign up for a service, they successfully pass the charger. As a business, it is your responsibility to get your customers to sell. You can send information about your business, offer a discount, or contact them regularly to increase interest in your business.
What your customers say about your business can make or break your business. As you work to offer the best services/products in your business, you should focus on providing a quality experience to praise your business on social media and other websites. If you solve this problem, they will tell the world faster. Both your current and potential customers should be happy. Improving your customer retention strategies can be very beneficial.
Networking events are a great way to network with people in your industry and increase your brand’s visibility. Such events give you an opportunity to be seen by new customers and grow your business. Such relationships can benefit you for years to come. So check out your local professional associations for upcoming events and to spread the word about your business. Use this opportunity to promote your business by meeting other entrepreneurs, speaking as an industry expert, or setting up a booth.
These days, many consumers are more interested in brands that align with their values. Corporate social responsibility (CSR) means you are aware of how your business affects society. If you show people what your business is doing to positively impact society, you’ll get customers. For example, running a green business shows the public that you don’t want your business to harm the environment.
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No doubt you want to sell your product or service
