During the first few years of running a business, most business owners are laser-focused on survival. In light of this, actively prioritising and planning the growth of your business is one of the best ways to increase the chances of your company’s survival, as well as contribute to financial stability and your economic well-being in the future.

That being said, what moves can you make to ensure that your business goes beyond the bare levels of sustenance? Which actions can you take to turn your business into an income-generating machine? Much like any element of running a business, there are many growth strategies which you can implement.

Recapture the attention of existing customers. 

Acquiring new clients is not the only way to grow your business. Often, the customers you already have are your best option for increasing sales, and studies have shown that increasing and improving your customer retention methods also further improve the value of a business.

Customers who have already bought from you once, are more likely to do so again, especially if they’ve had excellent and positive customer service experiences. Ensure that you’re accurately capturing the contact information, buying habits and shopping preferences of one-time customers. Following this, you need to utilise the information you’ve gathered, to set up marketing strategies which will convert them into repeat customers. 

It’s important to note that a mix of strategies to retain old customers and secure new ones is most likely to yield the best growth for most businesses. 

Referrals. 

One way to attract new customers to your business is to ask for referrals from your current, satisfied clients. These clients are already your target market, so it is possible that their colleagues, and possibly even friends, are likely to fall into your target audience too. This, of course, makes them an effective access point to new clients. 

That being said, just assuming that your clients are passing on the word about your services is not going to increase your current customer base. It’s on you, as the owner of your business, to actively seek out referrals. Depending on the size and type of your business, you could consider: 

• Reaching out to satisfied customers to identify if they know anyone else whom they believe would be interested in your products or services.

• You could incentivise referrals with a discount code or voucher. 

• Encouraging customers, to share and tag your business on social media platforms which you actively use. 

  
  

Containing your costs. 

Effectively increasing your bottom line is paramount to growing your business. If you’re expanding your share of the market but increasing your costs at the same time, you might not actually have enough money to invest more in your business or make more profits. 

We advise, while actively searching for ways to grow your business, to pay close attention to the associated costs in running your business and putting your products and services in front of customers. Effectively lowering certain expenses can be an excellent way to give your business the cash flow it requires to stabilise and grow. You should consider the following two approaches in cutting costs:

• Consider liquidating any low-earning products or eliminating your low-performing services.

• Improving your inventory turnover by exploring new marketing and sales tactics.

  
  

It’s of vital importance to not cut costs in a way which will negatively affect your customer service or employee satisfaction. Satisfied customers, and happy, enthusiastic team members are both essential drivers of substantial business growth. Cutting costs in these areas which will ultimately harm the possibility of your business’s expansion, even if they do result in more cash flow in the short term. 

Extending your market reach. 

There are many ways of growing your business by opening up your product or services to new pools of customers.  

• Open stores in new locations. Of course, new locations can come in virtual form, for instance, a website with an online store. This will enable you to put your product and/or service in front of new customers in a new market. 

  
  

• Targeting new demographics. It would be best if you considered identifying other groups who could utilise your product in similar ways to your primary target market. Once you’ve identified a new market, you can advertise via media (paid ads) which targets new markets, or you could opt to create customised marketing campaigns. 

  
  

• Encourage new uses for your products/services. Effectively finding and promoting new applications of your products or services gives you the power to encourage retentive customers to make more purchases. Moreover, it will also help you entice new clients who might desire your products for different reasons. 

  
  

All of the above approaches will allow you to expand upon your share of the market effectively. It will not only increase sales, but it also will stabilise your current business model. As a business owner who doesn’t rely on one target customer, you’re more likely to be able to weather any changes to the market. 

Trade shows. 

Having a strong presence at trade shows can effectively aid in growing your business as well as help establish yourself as a brand leader in your local sector. Trade shows entice people who already have an interest in the type of product or service which you offer. Furthermore, it also allows you to directly market towards large gatherings of people who might fall into your target market. Trade shows also come with the benefit of person-to-person interactions, which bolsters your chances in connecting with and converting prospects. 

In addition to this, trade shows also provide you with networking possibilities with other businesses in your industry, which ultimately can open doors to fresh opportunities, promotional campaigns, and collaborations.

By working with other businesses, you’ll further increase your chances of reaching new customers, as well as establish your reputation on national or even international scales, all of which will aid in growing your business. 

Conquering a niche market. 

If you’re interested in expanding into new markets or adding new services to your revenue streams, you could opt for growing your business by being focused on a unique niche. By doing this, you gain the opportunity to become a “big fish in a small pond.”

In a nutshell, a niche is a narrowly defined pool of customers with specific needs. Ensure that you seek out a subset of a broader market whose needs are not being met. Following this, focus on meeting these unmet needs at a consistently high and accessible level. 

In order to effectively foster sustainable growth, we advise selecting a niche which either:

• Has enough interest from your target market, and is broad enough to generate frequent sales. 

• Allows you to position your offering at a high enough price point so that you can keep your head above water and survive fewer sales.

  
  

Diversifying.

The core aspect of growing your business through diversification is through effectively building on similarities. You should consider implementing one of the following:

• Focusing on products/services which relate to the ones you already offer which address the needs of your current customers. 

• Focusing on new market segments, with similar needs and characteristics of your existing customer base. 

  
  

For instance, an artist might also sell frames, framing products and services. A business which rents out mountain bikes during summer could pivot to renting skis and snow apparel in the winter season. By adequately implementing small changes over time, you’ll be able to diversify your products and services and thus reach new customers without the risk of overextending your business. 

Franchising. 

If you’re the owner of a thriving business and are able to implement a system which ensures that others can duplicate your business, franchising is an excellent method in fast-tracking the growth of your business. 

However, it’s vital to note that successfully franchising your business depends on whether you have a brand which has a broad appeal across many geographical areas, as well as whether your business model is easily duplicated. 

To develop a franchise, you need to license your business model, processes, and branding to franchisees who then take on selling your branded products and services in their own local territories, under the same name as your business. Franchising allows you to expand your market reach to new locales, foster broader brand recognition, as well as generate new revenue streams from franchise licenses and locations. 

Exporting. 

Successfully expanding your business into international markets can also be an effective boost to your business’s bottom line. 

Much like franchising, this is a method of growing your business by accessing new clients in diverse geographical locations. That being said, it does require a significant commitment of time and resources. 

Moreover, expanding internationally can be complex in legality, as you’ll be required to deal with potential trade restrictions and customs laws across multiple nations. You might also need to acquire an export license, depending on the product and country you desire to export to. However, if you have adequate time and resources, exporting your product allows you to grow into markets which might have been previously inaccessible, ultimately creating significant growth opportunities. 

Selecting the right growth strategy for your business:

Devising the right growth strategy depends on the stage with your business and the resources currently available. Ensure that you consider what you have to invest, i.e. money, time, expertise or personnel, as well as your current target market, business goals and of course, your customer’s interests. 

Not every strategy will work for every kind of business or appeal to every business owner. Before you get started:

1. Select one or two ideas which align with your business and circumstances.

2. Develop a new business plan based on that strategy.

3. Ensure that you set accurate benchmarks for growth, revenue and expenses.

4. Be sure to track your milestones to monitor your progress accurately. 

   
   

Conclusion:

While you might not experience growth right at the start, you’ll see progress if you continue to carry out your plans consistently and systematically. Should one strategy not work for your business, be ready to step back, devise a new plan, and try again.