5 growth strategies for today’s business
Grow or die: the mantra that is never lost on a businessman. While profit should be the main motivation to a business, it’s a safe to say that nearly every business owner wants his or her company to grow.
The question is: How do you grow? Here are five common business growth strategies to think about:
- Creating and delivering new products and services. This is probably the most obvious growth strategy, but that doesn’t mean it’s easy. Conduct market research to determine not only which new products and services will appeal to your customers, but also which ones will be profitable. This tactic can serve two purposes; you can sell more to your existing customers, avoiding costly customer acquisition costs; and you may attract more and new customers with the new products and services.
- Tap into new markets and territories. The idea here is to market and sell your existing products and services to different customer niches or to customers in different geographic areas. Extensive market research is again one of the keys to success for this growth strategy. Check the numbers first and calculate not only whether there is a market for the services, but how much does it cost you to get that customer to buy from you.
- Penetrating your existing markets. This strategy involves selling more of your existing products and services to your current customers. Start by performing a market segmentation analysis to determine which customers to target with marketing messages designed to increase specific product and service sales. Today’s analytics and social media targeting techniques can efficiently deliver your message.
- Developing new sales and delivery channels. The Internet is the best example of a new sales and delivery channel for products and services. Talk with your sales and marketing executives about ways you can use the Internet or another alternative channel to grow your sales and revenue. This can let your existing customers know about your new products and services and also spread the word to new prospects.
- Mergers and acquisitions (M&A). Growing through M&A is very different from the other, more organic growth strategies. This strategy can result in rapid growth literally overnight, as well as the realization of valuable synergies between the merged companies. But performing thorough due diligence on acquisition candidates is absolutely key to successful growth via M&A.
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