Ideas For Business Growth Strategies – This makes sense, as statistics tell us that keeping a business healthy – without increasing the rate of growth – is already difficult in itself.
According to the U.S. According to the Small Business Association (SBA), approximately 20 percent of businesses fail within one year, 50 percent within five years, and 66 percent within ten years.
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So what’s the secret to successful business growth stories where small business owners live the life of a glamorous millionaire?
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But with some diligent market research, a strong understanding of your options, and a killer business growth plan, speculation shouldn’t be far off.
In this article, we will look at the concept of a growth strategy, several growth strategies, a plan to develop a growing business, and examples of growth strategies based on fake and successful products.
Growth strategy is a general term that can encompass many – if not hundreds – of ways to grow your business and generate more revenue and profit.
Your business growth strategy should be tailored to reflect the current state of your business, such as:
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In most cases, the growth process is as simple as expanding your ad to reach your customers.
There are many different ways to grow a business. We’ll go through five of them: market entry, market development, product development, diversification, and acquisition.
The first four of these are part of a popular theory of business growth called the Ansoff Matrix or the Ansoff Model.
To get a better idea of each of these five business strategies, let’s use the example of a shoe company called Nu Shu.
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One of the most common methods of business growth, market penetration is an internal growth strategy that involves expanding your market share (or more accurately, gaining more customers in your current market) with the products you already have.
Consider Nu Shu’s example: A go-to-market strategy might include trying to reach millennials to buy the company’s existing collections.
Market development, also called market growth, is a process of internal growth that involves selling what you offer to a new market.
Based on Nu Shu’s example, the market expansion strategy can try to sell the same handmade shoes to a different market, such as Gen Z.
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Naturally, this would involve changing the company’s marketing and sales strategies to appeal to this diverse audience without losing interest in the eyes of the existing millennial audience.
Product development, also called product expansion, is another form of internal growth that involves expanding or developing your product line to generate more sales in an existing market.
Nu Shu’s marketing expansion could be adding a new line of sneakers to meet the diverse needs of its millennial audience, adding something to existing sneakers, or introducing a new line of sneakers.
If you have an online store, the easiest way to create content would be to add new products in your niche or similar until you find something that appeals to your audience.
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Diversification is an internal growth strategy that carries certain risks because it sells new products in new markets—a double whammy of uncertainty.
Say Nu Shu decided to sell handmade socks to the Gen Z market. You can see how difficult this would be if they had no experience selling socks or to Gen Z.
That is why diversity is not accepted as one of the ways to improve small business. If you do not have much experience in other markets, in addition to having no additional resources, it is better to try the “safe” way of business development.
An acquisition is a form of external growth where you buy another company to expand your business. It can be any type of company that fits your long-term plans and goals.
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A successful growth strategy involves more than just deciding what direction your business will take. A way to define your long-term growth goals and a plan to achieve them is also important. Below are some tips to help you get started.
Of course, setting goals is a common practice in the business world, but with high growth goals, you move forward.
Basically, you write down goals that take five to ten years to accomplish, but each goal is tangible, fun, and something everyone “gets” without having to explain it in detail.
How many people do you plan to hire in the next ten years? How many customers do you expect to get during this time? How much money do you expect your business to make?
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Put boundaries aside for a while and let your imagination lead the way; your growth goals should seem more realistic and more ambitious.
At ten years old, the brand hopes to do $10 million a year, and hopes to hit that number with a group of 20. It also showed the size of the market needed to get there. In addition, the brand has listed the main tasks it needs to complete in order to achieve its goals.
For most growth goals, you don’t need to worry about the current state of your business. You just need to map them out in a calculated way so that it’s easy to create a strategy to help them achieve it.
For each growth goal, there are metrics that help you determine whether your business will be able to achieve that goal. In most cases, the metrics will have a direct relationship to your company’s revenue and customer acquisition goals.
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For example, if we talk about the ride-sharing company, Uber, one of its key metrics will be the number of trips taken. Why? Because they have a direct impact on the bottom line of the company. If more trips are taken and the number increases, it means more customers are switching and thus contributing to Uber’s overall revenue.
You also need to know your baseline for these metrics so you can determine what you need to do to grow the business.
In the hypothetical example from earlier, we determined that one of the company’s growth goals was to generate $10 million in revenue, and one way to reach that goal was to increase monthly visitors to 3 million.
So if we want to know the metrics that are important to the growth of BikiniThatSlays, we can create annual baselines of traffic and bookings.
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As you can see, the business needs to increase its traffic by 100 percent annually for the next ten years to reach 3 million visitors per month and increase its revenue annually.
As you develop your growth strategy, be sure to identify the key metrics for your growth goals and how your foundation will need to change to achieve your long-term goals.
Once you’ve identified your growth goals and their key metrics, the next step is to create a plan that makes it easy to see the path to achieving those goals within your growth strategy. The best growth plans include strategies and specific steps you can follow to achieve your business goals.
Continuing with the example of BikiniThatSlays, the growth plan shows the important steps the business needs to take in order to increase traffic volume and customer retention, which are identified as drivers of business growth.
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To reach its ten-year goal of 3 million visitors per month, for example, a business needs to increase its traffic to 600,000 visitors per month. Therefore, the growth plan outlines the small steps that BikiniThatSlays needs to take to achieve this traffic.
Since there are several ways to drive traffic to a website, this part of a company’s growth strategy includes all the steps a business can take to achieve its goal, including posting new blogs, creating YouTube videos, and partnering with influencers or guest bloggers.
As you develop your growth plan, be sure to list all the steps you can take to achieve your growth goals. Plus, track your progress quarterly to ensure you’re on track and continually improve your growth strategy. Examples of growth processes
When it comes to fashion, clothes can become yesterday’s news as soon as they hit Instagram, so what the brand Black Milk Clothing has done is completely ignore industry conventions – not following trends or seasons, and not even entering the fashion.
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Instead, the brand is pursuing an internal growth strategy of creating leggings, swimwear and dresses featuring popular movies, franchises and comics. It also releases several new designs every month and most of the designs are based on what is popular among the company’s prospective customers.
In terms of marketing, Black Milk Clothing allows the community to promote their products. For example, when you search, you’ll find tons of user-generated content
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