Who doesn’t want to control a large portion of the market, and wield much influence and power? There are several important growth strategies that small businesses can apply to expand their operations and occupy a larger share of the market. Here they are:
- Having a Strong Plan
You’re the owner of your business and you have the necessary information about operations, finances, market conditions and other important issues related to your company. This knowledge can help you determine when and how your business should expand. By building a strong plan, you can avoid the negative effects of poorly managed growth.
- Determining Your Market Segment
It’s critical to determine your market segment properly so to make growth decisions aimed at positive results. Though this can be challenging, it’ll eventually lead to positive returns. You should understand your market and target the demographics you want to serve so to get an opportunity to grow effectively.
- Using Customer Feedback
Expansion planning should be based on addressing your customers’ needs. If your customers want your business to build its presence in a particular area or offer a particular service, you shouldn’t stay ignorant. This doesn’t mean feedback should determine your path; it can play an important role in the decision-making process.
- Have the Right Financial Backing
If you need access to working capital so to be able to take your business to new heights, consider applying to a reputable business funding provider like First American Merchant.
FAM is the #1 high risk loan provider in the US and offers exceptional business financing opportunities, including high risk business loans, to merchants of any type and size. FAM boasts an A+ rating with the BBB, A rating with Card Payment Options, and serves both traditional and high risk businesses.
- Market Penetration
You can achieve growth through a market penetration strategy. This can be done by reducing the selling prices of the products/services, increasing promotions for products/services to improve your pull strategy, expanding distribution channels to enlarge your reach, effecting improvements on the product, zeroing in on the competition’s customers and distribution channels.
- Market Development
You can grow your business also through market development or market expansion. This implies no new product, but a new market. Your business will be able to gain more market share, more sales, and more profits in this new market. You can expand the potential market either through identification of new users or new uses for the product.
- Using Alternative Channels
You can use the Internet to reach out to customers and sell your products. Consider selling online, selling through subscription programs, and selling through mobile apps.
- Expanding Your Product
Product development or product expansion is another strategy to try. It implies no new market, but a new product. Such strategy is based on expanding product line by developing and introducing new products, adding new features to existing products, updating features of products when the old ones become outdated.
- Using Diversification
Diversification suggests selling new products to new markets. This can be realized through conglomerate diversification, that is diversifying into areas that are completely unrelated to your current product area. Also, you can apply concentric diversification, meaning you can add products related to your current products, or add markets related to your current market.
- Through Mergers and Acquisitions
Mergers and acquisitions mean one company purchases the other, or two companies become consolidated, combined or joint.
- Through Partnerships
Partnerships can help brands increase economies of scale. Some of the viable strategic alliances include shared distribution, technology transfer, and cross-manufacturing.
Turning a small business into a big one can be a real challenge. However, with the right strategies and steps, you can grow your business and take it to the next level successfully.