Companies that experience a spiraling decline in profits and sales need to quickly develop a concrete growth strategy to get on their toes and outpace their competitors. Without a proper growth strategy, they will have to face the challenge of wavering consumers and relentless market fluctuations. Hence, it is essential to consider all the viable and feasible options available to you and devise a clear and thoughtful business plan.
Developing Strategies for Business Growth
Based on your company, you can choose from various apt strategies for growing your business. A few firms amalgamate different growth strategies together to stick out from their rivals. Whatever your decision is, you also need to analyze your team’s future growth strategies and gather feedback regarding their views and contributions. Here are the seven most effective growth strategies that can lead to success and boost sales and revenues.
- Market Share
One highly effective way to grow your business is to get hold of a larger share of the current market that contains the already existing product offerings. This can be done by merely focusing on improving your selling and promoting efforts or altering your prices to win customers from your rivals. An exciting discount or deal is also a great way to attract competitors’ customers.
- New Markets
Scan the environmental surroundings and seek a novel market place or market space to market your existing products and services. This entails escalating your product sales to other markers in the city, country, or province. New markets reveal better opportunities and also give your firm to have an upper-hand over inexperienced competitors.
Taking over or buying out another firm is a very cost-effective approach to enhancing your market share, capturing novel markets, or branching out. An acquisition offers an established set of operations and client base. This strategy is highly apt for firms who want to discover and expand into newer horizons.
Indeed, diversification is the most dangerous and risky growth strategy that entails creating new products/services to sell to the current markets or a wholly distinctive client base. Choosing diversification as your firm’s growth strategy means entering a matching business line or choosing an entirely new one.
- Buy a Franchise
A franchise is usually connected with name acknowledgment, immense marketing power, hard-core support, and backing from the franchise owner. Acquiring franchises is most appropriate but also necessitates an in-depth examination. Hence, business owners should do thorough homework regarding the costs of advertising, supplies, start-up fees, and royalty premiums.
- Strategic Partnerships
A strategic partnership is a growth strategy that involves associating your firm with another firm. A partnership can be formed over an informal agreement amid two companies in similar markets or over a more complex joint venture, in which both firms pitch in their resources and finances to follow a combined business project.
- Repositioning and Efficiency
The repositioning and efficiency strategy involves aiming for the growth fraction in your business’s profit margins in either of the 2 ways.
- To increase the firm’s efficiency level to acquire the target.
- To reposition the firm’s products.
Your company can investigate all the prevailing products and services to keep track of the profit margins and see if it falls in line with the approved business strategy. Conversely, you can review your firm’s operation processes to see if there is room for more efficiency.