Growing your business is always tough for small businesses and start-ups, especially when they only have a limited amount of working capital. You can’t let this stop you from planning to grow. Every small business should plan to grow, failure to so puts you at risk of being overtaken by your competitors.
To put it simply, you either grow or die.
Choosing the right growth strategy depends on the business type and your willingness and ambition to grow.
Below are some of the most popular growth strategies:
1. New location
If your business is profitable and your business processes are well defined then opening up in another location with the same demographics as your current store or office is a great option. Choosing the right location is crucial. Try to find an area with the same demographics and level of competition to your first location.
If your business model is working and you have a well-established brand franchising business is a low risk quick and inexpensive ways of growing your business. Franchising is a good way of raising capital without approaching private investors or banks.
3. Licensing your Product
When a larger company licenses your product, they take over the manufacturing and distribution of your product. The company that licenses your product is called the licensee, and they pay you royalties on any sales of your product.
4. Forming an Alliance
Forming a strategic alliance with a similar or larger company will allow your business to reach a broader market.
5. Diversifying Your Products / Client Base
Diversification can be done in two ways, you can market your existing products to a new market or sector. The second way to diversify is to bring new products or services to market.
6. Additional Channels (Route to Market)
You can grow your business by increasing your sales channels. Think about increasing your partner network, try to find new stores to buy your product.
Another great way of growing your business is by increasing your online presence, try selling your goods on eBay or Amazon before opening a standalone online shop.
If you want to grow your business quickly and you have enough capital buying or merging another business may be an option.
8. International Expansion
Many small business owners discount this as an option, but there is no reason small businesses cannot become global businesses. If your business produces digital goods/services then having international customers is as easy as having local ones. If you produce physical goods there is a lot of support available to help you export your products to new markets.
9. Business Improvement
This is the easiest option of all, but the one most overlooked by many business owners. If you are seeking growth of revenue and profits then the best place to look is at your current operations.
Review every stage of your business, from how you attract customers to how you treat your existing customers. try to find efficiencies within each process and look for opportunities to grow your business and make more sales
Planning for growth is an essential component of every business. When choosing the best growth strategy for your business plan carefully, research your chosen option, set realistic targets, ensure you have enough capital to fund the grow and review performance regularly.
Make Your Business A Success
The key to a successful business can be found in our Business Success Formula. If you structure your business using the Business Success Formula as your blueprint you will decrease your chance of failure significantly.
We assess your business and implement our business success formula in our business assessment service The Business 360. It provides you with all the information to 10x your business in a matter of weeks. You can check it out here.