Taking your small business to the next level is never an easy task. Several types of research suggest that not every business owner is able to reach heights. In simple words, they stay there from where they started.
Well, growing a small business is easier said than done. Many small enterprises face challenges that hinder their growth. Producing a great product or service is not just enough. There is a need for good business growth strategy, communication plan, defined audience, and keeping an eye on where the business is going.
You need to have a growth strategy with an annual plan. There are many examples of a successful transition from a start-up to fully thriving large enterprise with the help of a good growth strategy plan.
A growth strategy starts by identifying the opportunities and accessing them within the market. Here, you need to detail how you are going to meet your specific business needs and targets. It elaborates how your organisation will evolve while meeting the day-to-day challenges. It gives your business a purpose and answers the question of your long-term plans.
It is important for you to have a growth strategy to help you keep working towards your goals. They keep you focused and aligned. Notably, you must make decisions based on tomorrow/future rather than on today.
Developing a Growth Strategy
A growth strategy is essentially a ladder that takes you from the lower level to higher. It presents less risk and exponential growth. The bottom line for small businesses is that they should focus on growth strategies that run from the lowest steps and then gradually move upwards. In a nutshell, while planning a strategy, you should focus on lower steps first. As you will climb every new rung of the ladder, you will be provided with new opportunities for fast growth.
The least risky stage for any business is to sell more products to its current audience. It is a strategy that is adopted by most of the consumer goods companies. Look how beverage companies have started making packs of six, twelve, or a case. Such a way, there are many other items as well that are sold in packs of two, three, or more. You can also find new ways to drive your customers to buy more products from you, like selling them in packs of six or ten.
The next step in the ladder is to find and plan a way to sell more of your products to a new market. You can consider selling your products or services to a new location in a new city or state, for instance. Reports suggest that most fast-growing companies took selling their products at a new location as the key point of their growth strategy. For example, Bujy’s was started from a small village in Kerala. Today, according to the Wikipedia page, it has become the world’s most valued Edtech Company with a value of Rs. 57,000 crore in January 2020.
To further improve your business, you need to look for alternative channels. You need to look for different platforms from where you can pursue your customers to buy your products. The best channel option for you can be online. Customers these days like to buy online from the comfort of their house. Most big companies as well sell their products online to reach to masses. You can also take your business online by using the internet and let the new audience get access to your products and services. You can register your company on big e-commerce marketplaces as well.
It is classic but best strategy! You can develop and add new products to sell to your audience. This way, you can attract a new audience as well. Here, you are suggested to sell the products to your existing customers. If you look for new customers, you will have to learn a new product and market segment, which is quite risky.
New Products for New Audience
Sometimes, the market conditions require you to create and sell new products to new customers. For instance, if your company only produced beverage, then there will be a difficulty for you to survive in winters. Fortunately, if you add a new product, you can easily sail through the time of straits. Besides, you will also open up for a new market.
If you choose to follow the growth strategy mentioned above, you need to take one step by one as each level has some amount of risk and uncertainty. Having said that, when we talk about expanding business, there is a need for enough funds to back the plan. In case you lack the same, you can avail a loan without collateral. It will provide you with immediate cash to meet your requirements in a hassle-free manner. However, you are advised to check your CIBIL score before applying for a business loan. Most small business owners consider good CIBIL score an important eligibility criterion. Significantly, you are entitled to one free CIBIL score check once in a year.