We all know that every business, small or large, has its own plans, which can help with increasing profits and sales and growing their businesses entirely. However, we must also make sure that we have specified which must be used for growth strategy implementation.
For business survival, growth is essential and fundamental. Having a growth strategy will allow businesses for possible expansion and, eventually, success. Growth is important for any large or small business in order to establish it and have possible expansion. There are a lot of growth strategies that could help with your business, and here in this article, I will show you some growth strategies which you can apply.
What Exactly is a Growth Strategy?
Growth strategies are the ones that open up the door to possibilities of business expansion. The growth of a business may be achieved through processes of doing practices, which may include product line expansion, the addition of new locations, and customer acquisition investment. Growth strategies may affect these practices and as well as affect target market influence and the business’s industry. Growth strategies are essential for assuring the success of any business.
How to Develop a Growth Strategy?
Before being able to come up with our business strategy, the best way to do so is through understanding how to do it and establish it fully.
- Establish a Value Proposition
To establish a growth strategy, we must first understand how it is set apart from the competition, what makes you special. Be able to identify the services and/or products that you offer, which makes customers come back for more.
- Identify Ideal Customers
Our businesses are established as it is made to address the needs of a certain group of people. With this, be able to identify which particular set of people are your audience, who are you addressing your products and/or services to.
- Be able to identify the key indicators
Changes must be anticipated and measurable. If, as a business owner, you can’t identify changes and be able to prepare for them, it might be hard to know whether the growth strategies are effective or not. The dedicated money and time, the key indicators are factors that may affect the growth strategy you wish to apply.
Common Growth Strategies in Business
As I’ve mentioned earlier, there are tons of business strategies, but here are the common growth strategies which many successful businesses are using.
- Market penetration strategy
Market penetration is applied by a business when it comes to coming up with a decision to market existing products within the same market that it is already used. According to experts in small business, the only way to assure growth with existing markets and products is by increasing the market share.
- Market development or expansion
Commonly known as market development, market expansion growth strategy refers to selling existing products within a new market. Market expansion strategy is considered by businesses for several reasons. One of which is the competition may be as such that growth has no room anymore within the current market it is in. Another would be if a business can’t find or do not explore new markets for their product, there is no room for possible sales or profit increase.
- Product expansion strategy
Adding new features and expanding the product line is a strategy that contributes to the growth sales and profit increase of a business. By employing a product expansion strategy, a business may continuously sell its products and/or services within the current and existing market. This strategy often works well and is effective when there are changes in technology.
- Diversification for ensuring growth
In businesses, growth strategy should also include diversification. Diversification is a strategy wherein a business starts selling its new products or a new product line in a new market. This strategy may be found risky, so there is a need for us business owners to plan with great care if applying this strategy. With diversification, market research is essential. Market research will help businesses if there is a potential that consumers within the new market will like and buy the products and like the product line.
- Expansion through the acquisition of other businesses
An acquisition may as well be included in the business strategy. This type of strategy may be used by a business to expand its operations by means of purchasing another business. Small businesses can use this strategy in order to enter new markets and expand product lines. Similar to the diversification strategy, this is as well a risk but not quite as risky as other strategies mentioned.
When using an acquisition strategy, a business must already have an established view of what you want because of possibly require investments that must be implemented.
Why have a Growth Strategy?
The growth of the business will depend on the decision we will be making and the way we choose how to make it successful. With a growth strategy, there will be a clearer understanding and view of what you want to achieve and what needs to be implemented if we see that a certain product line and/or services are not doing so well. Having a growth strategy will help in understanding the goals and vision of the business as it will aid as well in its success and possible expansion. Growth strategies must be used to make sure that marketing is effective and that there is profit and sales increase.
Making the business grow will depend on how we implement and strategize. As business owners, we must be able to adapt to the changes and use these in order to ensure the success of the businesses. With this said, one step to assuring growth is through having a growth strategy. Growth strategies will help us in building the success and expansion of the business and how we can make it possible. These strategies are necessary for assuring that each product and/or service being offered is effective and purchased by the target market. Coming up with a strategy will open up new opportunities and possible expansion for the business.