What are the main opportunities? When done right, an acquisition of another business can advance you along some of the other paths to growth in a fraction of the time.
Product Expansion A small company may also expand its product line or add new features to increase its sales and profits.
An even more microscopic group, just 0. Using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service, is another Alternative Channel strategy.
The bottom line for small businesses, especially start-ups, is to focus on those strategies that are at the lowest rungs of the ladder and then gradually move your way up as needed. Twitter Every company, whether large or small, has sales goals that demonstrate growth year over year.
The only way to grow using existing products and markets is to increase market share, according to small business experts. A small company may also use a market expansion strategy if it finds new uses for its product. Eventually, the company offered employment staffing services in some different locations, and the company became the fifth-largest staffing business in the U.
Nevertheless, there are three viable alternatives when it comes to an implementing an Integrative Growth Strategy. There are certainly some similarities.
McFarland says that many of breakthrough companies such as Paychexthe payroll processing company, and Intuitthe maker of personal and small business tax and accounting software, acquired key competitors over the years as both a shortcut to product development and as a way to increase their share of the market.
The opinions expressed here by Inc. Sometimes the best approach is to take it one rung at a time.
Consider products or services that complement your current ones, allowing you to generate more sales from your existing customer base. Market Expansion A market expansion growth strategy, often called market development, entails selling current products in a new market.
Market saturation—the point at which it becomes tough to find new customers—is unlikely to be an issue for quite a while. Extend Your Market Reach One of the simplest small business growth strategies is using your existing products or services to expand into existing and new markets.
If your business is currently a bricks-and-mortar company, opening an eCommerce website is a new sales channel. Intensive Growth Part of getting from A to B, then, is to put together a growth strategy that, McFarland says, "brings you the most results from the least amount of risk and effort.
Look for small business loans, grants, and other investors who can contribute capital to help you acquire additional equipment, space, and even staff to help your productivity soar. If you find that your current offerings have reached a plateau of sales, look into developing new products or expand your service offerings.
But if you buy a company that already offers different products, you get ready-made access to a proven product range.
A small company may use this type of strategy to expand its product line and enter new markets. It could get you focused on the right things, and it could help your business to grow much more quickly and generate more profits, so that you can hire people to help you with that to-do list instead of slowly drowning under it by yourself.
An acquisition growth strategy can be risky, but not as risky as a diversification strategy. This may mean finding ways to further penetrate your current markets and gaining additional market share from competitors.
It should be much easier to make a sale. Is there a way for you to convert them from one-time customers to regular customers, for example through a subscription-based service?
For instance, if you were a garment manufacturer like Chicoswhich is based in Fort Myers, Florida, you could begin buying up retail stores as a means to pushing your product at the expense of your competition.
As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies.
Massive conglomerates such as General Electric are essentially holding companies for a diverse range of businesses based solely on their financial performance. After all, these are people who have already bought from you.
What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered.
Then, after several mild winters, the company was in dire straits. To start making that decision, you need to get a clear picture of where you are right now. Understand the Different Paths to Growth So how can your company grow?Every small business wants to grow into a big one someday.
Consider these five key growth strategies. Be sure you have a solid marketing plan as part of your small business growth strategy to sell your additional products. Your growth strategies in business rely on your own expertise, creativity, and willingness to work on action plans you develop for growth.
A small business growth strategy is simply a plan that outlines how your company can get from where it is today to where you want it to be. some similarities. But, as I wrote in my tutorial on business plans, there are lots of different components to a business plan, such as financial plans, Learn more small business growth strategies.
Jul 09, · The business plan for strategic growth is one of my favorites because it’s about core business decisions, steps, metrics, and making things happen.
It matches my vision of business planning as ongoing management and steering a business. It’s not about explaining or defending a business for 5/5(2). A business plan is a written description of your business's future, a document that tells what you plan to do and how you plan to do it. If you jot. Entrepreneurship Business Plans Writing a Business Plan: Choosing a Growth Strategy Office supply stores, for example, have been very successful at catering to the needs of individuals as well as small-business owners.
Creative Marketing Growth Strategies.Download