Growing your business is actually easier said than it can be done. Companies of all sizes are prone to combat difficulties and overcome challenges that hold them back from growing. Some companies may offer great products and services but lack a business growth strategy to help outline, articulate, and convey where it is heading.
Other companies start small and stick there but eventually identify that their business survival is unguaranteed. Some start-up companies have even transitioned successfully to prospering large-scale firms. Nonetheless, this article pertains to your concerns on how to develop a business growth strategy that is compelling, dynamic, and paves the way for success.
Tips for Developing an Effective Growth Strategy
- Define the ideal customers and their interests and look for niches that you missed out on earlier.
- Define the values of your business.
- Assess the various forms of customer engagement strategies like customer feedback and customer retention.
- Focus on cost-cutting by reducing expenses and switching to less costly options.
- Set realistic goals and assign a time-limit on accomplishing them.
Growth Strategies for Your Business
Developing a growth strategy calls for some severe coordination on a cross-functional level amongst all your stakeholders. Everybody should be a part of and understand the idea they will be working for.
Intensive Growth Strategies
Part of reaching from point A to B is to devise a growth strategy that provides efficient results from effective work. This means putting in the least amount of risk to acquire the most results. In the first phase of developing a growth strategy, companies should also consider the lowest steps. Each step adds opportunities for fast-paced growth and increases the risks. These are known as Intensive Growth Strategies.
This is the safest growth strategy for companies that require selling current products to the existing customer base. This strategy is ideally achieved by massive consumer goods firms. Another form of market penetration includes searching for means to engage your customers in using your products in different ways and advertising their versatility.
The next step to move up the growth ladder is to think of selling your existing products in higher quantities to other markets in the vicinity. The market development strategy entails offering your current products and services to people residing in other neighboring cities or states.
In this growth strategy, a firm can engage its customers in other ways; for instance, they can start marketing and selling their products on the internet via a website. Companies that resort to the internet can give customers a way to access and avail the products or services in a hassle-free manner and in their homes’ comfort.
With each step up the ladder, the challenges and risks keep adding up. The Product Development strategy entails creating new products to market and sell to your existing customer base and new customers. Companies should prefer selling their new products to their already established customer base. This is ideally less risky than learning about a new market and product simultaneously.
New Products for New Customers
The last phase of Intensive Growth Strategies would be to expand horizons and offer new products to new customers. Obviously, this is the riskiest step of all, but it can take your business a long way ahead if successful.
When choosing any Intensive Growth Strategy, it is essential to know that these rungs come with their own set of risks, efforts, and uncertainties. Hence, we suggest companies take one step at a time.
Integrative Growth Strategies
Suppose all the rungs of Intensive Growth Strategies seem to have reached their saturation point. In that case, you should probably consider growing your business via acquisition or mergers. A common issue is that over 70% of company acquisitions cannot efficiently deliver the expected values. Sometimes, unions may end up very badly too. This is when companies should resort to more viable alternatives, as in this case, Integrative Growth Strategies.
The horizontal integration growth strategy pertains to the concept of purchasing a competitor company or companies. A business that implements this strategy will experience growth and also benefit from eliminating another obstacle (a potential or real competitor) that is likely to risk its business growth in the foreseeable future.
A company acquisition can also relate to buying out businesses that are a component of your distribution channel. This is an excellent way of pushing forth your product range at the cost of your competitors.
A backward integration growth strategy involves purchasing any of your suppliers to have more control over your supply chain processes. This type of integration enables firms to create new products promptly and at a far lower price.
The third classification of growth strategies that was particularly renowned during the 1950-60 era and is not commonly used in the modern world is Diversification. Diversification is a form of growth strategy in which companies acquire growth by buying out other entirely dissimilar businesses from your own. There are two types of diversifications.
This form of diversification occurs when businesses expand or add to their current product or market lines. The companies begin to manufacture products or enter new markets/industries that have similarities with the existing business industries.
This form of diversification pertains to companies expanding or adding product lines and entering new markets/industries that are entirely new or unrelated to the current business industries.
Diversifications are rarely considered as a viable option in the modern era, mainly because of cut-throat competition. When companies have tried or failed all other growth strategies, diversification is probably the last resort and the riskiest and most problematic of all.
Navy Veteran Davis Chris Takes the Music Industry by storm
In life, you need to break down anything that might be holding you back and change course if need be...
5 Disruptive Leaders Paving the Way in 2021
Where there is uncertainty, lies a whirlwind of opportunity. 2020 was the year that had entrepreneurs learn a great deal...
Brock Pierce Wants To Disrupt The Two Party System And Be Your Next President
We don’t usually cover politics much here at Disrupt, but when Crypto billionaire and friend of the show, Brock Pierce...
John Mcafee – Predictions For The Future
John McAfee is a world-famous tech CEO, computer scientist, civil disobedience activist, privacy advocate, and pioneer of the commercial anti-virus...
Gaby Wall Street – Teaching Latinas to Thrive During The Crisis
It’s no secret we are facing one of the most challenging financial times of the last few decades as we...
Tony Delgado – The #1 Entrepreneurship Movement In Puerto Rico
Puerto Rican online market is in constant progress. With many entrepreneurs who are coming here to start a business, it...
Elena Cardone – The 10X Ladies Conference Is Declaring 2020 The Decade For Women
The next ten years are meant for women to continue growing their potential and succeeding in multiple areas, including business....
How Josh Elizetxe Built Snow Into a $40 Million Dollar Business
There is nothing quite like an entrepreneur’s determination when starting a business. That’s my original quote by the way (pun...
How Jason Capital Became A Self Made Millionaire By 24
Have you ever wanted to earn the respect of everyone who ever looked down on you at some point in...
Sam Bakhtiar On His Way To A Quarter Billion
Dr. Saman Bakhtiar, who prefers being referred as Sam, lives in an 8200 square foot $5.2 million house, Sam is...
Community3 days ago
DeFi’s SafeBTC is Disrupting Wealth and its Unethical Distribution
Executive Voice2 weeks ago
Top 10 Successful Females Who Continue To Inspire Us
Business2 weeks ago
The Aussie Start-up That is Pushing The World’s Furniture Industry Into the 21st century
Business2 weeks ago
From Trash to Cash: How Sir Chigozie Chukwudi Okafor Built an International Brand From the Unlikeliest of Places
Executive Voice1 week ago
How Malawi’s Youngest Entrepreneur Has Utilized Instagram To Take Over The Marketing Industry
Executive Voice2 weeks ago
Top 10 Successful Women Who Continue To Inspire Us
Executive Voice1 week ago
Who Is Simon Kallu? A Featured Story
Executive Voice7 days ago
Interview With Chicago Artist HotBoy Finn