Growth is fundamental to the survival of your business, which is why you should plan for it from the very beginning. Without a growth strategy, your business will plateau very quickly or even worse, fail. There are several growth strategies for small businesses that you can apply depending on your industry and circumstances, and we will be discussing them below.
Market penetration
As a newbie in the industry you will be competing with well-established businesses, so how do you promote your products? You can reduce the prices of your products and services. Customers love a good bargain, and they will always opt for the cheaper option. Increasing promotions such as clearance sales, special offers, rebates and similar schemes can also help lure customers from your competitors.
Market development
Market development, also known as market expansion is a great strategy for businesses that are struggling to penetrate their current market. It requires you to promote your products to new customers. You can choose to target another geographical area or find a new target market. For example, if you run a bakery, and sell to the consumer market in Manchester, you can either enter the commercial market and sell to restaurants and cafes or move to nearby cities.
Product development
Creating different variants of the same product can really help grow your business. It enables you to attract new customers and gives you access to a bigger market share. When implementing this strategy, research is key, so study your market and keep an eye on your competitors to see what they are producing.
Market segmentation
Market segmentation simply means categorising your markets into different groups according to customer characteristics, interests, locations, etc. Doing this helps you create targeted marketing campaigns, which have a higher chance of success.
Alternative channels
The internet has opened up more channels for businesses to reach customers and sell their products. You can sell online through retail websites such as Amazon, or you can set up your own website.
Growth strategies for small business – find out more
Business growth requires capital. We offer various finance solutions aimed at business growth and development, so get in touch with us to discuss how we can help you. Or you can find out more about how we can help your business grow, by visiting our website.
Image by: VanVangelis via Pixabay
