Small business owners are always faced with the difficult task of maximizing revenue and profits. However, in our current economy, it seems like maximizing these two factors is harder than ever before. With more businesses starting up each day, there is a lot of competition that can make it hard to be successful.
With that being said, there are certain growth formulas that all business owners should consider implementing. There are many theories on how to grow a company after the startup phase has ended, but these four have stood out as excellent models of success.
You simply want to increase your market share by getting more customers/users/clients to buy from you. This is easiest (and most common) if you’re the only business in your sector or niche, but it can also be done through targeted advertising and promotion that directs existing potential customers to you. Penetrating into the market is a guaranteed way to increase your sales.
A common mistake here is to assume that simply having the money and resources will make it happen: infomercials for products don’t work, paid advertising doesn’t guarantee success, etc. If you want ideas and guidance on how best to penetrate the market, you can speak to the folks at sgfe.co.uk, they will guide and mentor you on how to market your business. The key factor here is targeting the right audience and messaging them in a language they understand and care about.
A market development program can be the difference between success and failure. This is a broad-based approach to determining new product/market opportunities and implementing programs to develop business within existing and new markets. A good market development program should generate new clients, increase sales throughput or revenue per account, expand gross margins or improve pricing power.
Market development initiatives should also seek to identify new market opportunities and provide solutions. This can be achieved by increasing sales penetration, increasing product range, or identifying new channels of distribution. It is also important to consider diversifying into related, but different markets. Leadership marketing or market development serves as an umbrella program that feeds the other three functions of the business model.
Market Development represents the engine that drives revenues, profits, and long-term shareholder value. While it is important to have a highly functional sales and marketing organization, it cannot by itself be successful in achieving market development objectives without having an effective market development strategy in place.
Small business owners must constantly be looking out for new ways to add value to their products or services in order to maintain a competitive edge. If they cannot offer something that is different from their competitors, and better than what is currently in the market, there is no reason for customers to buy from them.
Product development also encompasses all the processes involved in taking a new product or service from the drawing board to the marketplace. Many small businesses are constantly creating, testing, and marketing new products. This not only requires capital but also time, commitment, and an efficient system for monitoring the process of product development.
Companies that do not develop new products risk being outpaced by their competitors.
For example, those that were quick to adopt the Internet as a way of doing business now find themselves reaping the benefits. Those that delayed, or decided not to get involved at all, are playing catch-up and may never fully recover.
Business diversification can be a great way to help grow your business. Unfortunately, it is also something that often gets put on the back burner. Many company owners are very single-minded when it comes to their business, focusing all efforts down one particular avenue. While this can be very effective, it also makes you potentially susceptible to new developments and changes.
You may have an idea of the sort of products or services that your business already offers, but what else would you be able to offer? Maybe it is time to bring in someone new to brainstorm, or at the very least consider what else your business could offer.
Another great way of generating income is by rebranding yourself as a specialist within your specific market. If your company offers an array of different services, you will most likely have something that sets you apart from the others out there. Focus on that aspect and highlight it to your customers, pitching yourself as a specialist in your chosen field. It is also important to keep up with market trends throughout different seasons and years. When you feel your business slipping behind the times, consider rebranding or refreshing your product lines so you can stay relevant. Additionally, diversifying your clientele is an often overlooked way of growing your business.
Growth is what keeps most small business owners motivated throughout the years. Finding new customers and making more sales pushes them to go further in their push for success. However, many of these same small business owners lack a proper growth strategy and find themselves hitting complacency once they’ve reached a certain sales level.