Every business faces the existential threat of competitors. Many small businesses don’t make it to the ten-year mark. For this reason, you have to be strategic from the very start as a small business owner. If you don’t have a tangible development strategy for your business, you risk losing business to your competitors and even obsoletion.
What’s the one thing you can do to ensure your small business is sustainable? A growth strategy is a clear, actionable plan that will set your business on the path to long-term success. It’s a plan that makes your position in the market more dominant and stable while capitalizing on opportunities for market expansion.
What’s more, you may run a small business now, but that may not always be the case. Inevitably, you’ll need the help of small business advisory services to develop a growth strategy that orients your company towards success and ensures the sustainable expansion of your business.
There are four major business growth strategies that will ensure growth and profitability go hand in hand for your company.
A market penetration strategy aims to increase the sales of your products or services within your current market. Pricing is one of the main tactics companies use to grow their share of the market while increasing revenues. Lowering prices and bundling product offerings work well in gaining traction in market portions you haven't yet penetrated.
As a small business owner, it may not always be practical to charge considerably lower rates for your offerings. Lowering prices typically work when costs can be spread over a larger number of goods. As such, it’s important to work with a small business advisor to determine which market expansion strategies will work best for you. Some strategies employ social media campaigns, direct sales outreach, and other marketing strategies to reach untapped market segments.
There’s a reason why Apple releases a new iPhone every year – to keep customers coming back to buy the newest release. Improving existing products is an efficient yet cost-effective method for product development since you don’t have to dedicate a lot of time and resources to creating a new product. A well-designed product development strategy can breathe new life into your business, helping your brand stay relevant with its customer base while naturally growing your market share.
Similarly, market conditions evolve with time, as do consumer preferences, so it makes sense to adjust your product mix accordingly. As a business growth strategy, product development helps you keep pace with changing technologies, trends, and preferences, while diversification opens up new markets for your business.
In this strategy, you can grow your market share by collaborating with complementary businesses. Partnering with another small business will give your company access to its existing audience. Ideally, the partnership ought to benefit both businesses significantly. It can involve developing a new product that serves the interests of both parties or hosting an event to promote both brands.
Acquisition is another business growth strategy that can increase your market share. It involves buying a large portion of another company to gain control of its operations. The principal motive for acquisitions is to create value, whether by increasing economies of scale, business diversification, or increasing market power.
Strategic partnerships and acquisitions require a great deal of market research. A business advisory firm will provide you with the data and tools needed to make the right decision.
Market development is a business growth strategy aimed at capturing an entirely new market share. Small businesses often struggle to gain a footing in competitive markets because they don’t have the same resources as larger brands. That’s why it’s important to evaluate your company’s market position and narrow down your target.
Every market can be divided into smaller subsets based on factors such as demographic characteristics or buying habits. Focusing on a specific market segment like underserved or unserved demographics, can help you expand your business. Plus, creating a marketing strategy that appeals to a specific group of potential customers is far easier than trying to appeal to a massive group.
BAAP CPA is a CPA firm in Clearwater that works with small businesses to improve their operational and financial management strategies. Contact us to develop a business growth strategy that will propel your firm to new heights. Contact us to develop a business growth strategy that will propel your firm to new heights. We will assist you with our business advisory and tax planning services and ensure your business develops a sound strategy for long-term growth.