Strategies for Growing Your Small Business
Choosing an appropriate strategies for growing your small business can vary depending upon the type of company you run, the available resources, and many other factories. Today, I want to provide you will a few best business ideas.
Increase the Customer Base
This strategy might include not only finding new customers, but also increasing the number of repeat customers. New customers are often easy to come by. Consider the cable company. Cable companies tend to do a pretty decent job with luring customers in. They employ a variety of methods, such as discounts, free products, and other incentives. However, they also tend to lose customers to competitors just as easily. In essence, they tend to lack customer loyalty. Providing excellent customer service and giving customers good value for their money is one way to gain customer loyalty and increase the chances a customer will promote your products and services within their network.
Diversify Products and Services
Diversifying is an amazing strategy for growth, because it facilitates multiple income streams. If the products serve similar purposes, it also provides customers with more options. A word of caution though. Too many options can prove challenging for customers and decrease the shopping experience. Even so, adding a new product or service may even attract new customers. Whereas one product didn’t suit their need, adding a new product may.
Introduce New Technology
Introduction new technology to your business may increase efficiency over time. In turn, efficiency may increase capacity. This strategy requires heavy investment but usually returns are far higher than expected. Business owners should be careful when implementing new technology. Without proper training, new technology can be a hinderance than a help.
Target New Market
New markets can be a great way to increase your customer base, which can lead to greater profits. Keep in mind, carefully studying your target market is an important step. Simply targeting a market without knowing the market’s spending habits can cost a significant amount of money without any real return on your investment.
Open Another Location
Opening another location is a great way to grow your business. Entrepreneurs who already have one success location that’s making decent profit might consider investing in a new location. Keep in mind, your new location shouldn’t compete against your current. Rather it should provide additional opportunities for your market to find you. A new location may be one of the pricier endeavors. One low cost method of adding a new location is to create an online store.
Go Global
Exportation is a great way to tab into new markets and bring money into the economy. You may even find financial programs that support global trade within your area. Like targeting a new market, it’s important to research your potential market thoroughly. Depending on your products and services, this can be an expenses method of growing your business. However, a successful launch in another country has the potential to have great returns.
Final Thoughts
Whether you decide to grow your business or not still requires quite a bit of research. As I mentioned in a previous article, poor planning can lead to disaster. A successful business can easily be run into the ground with a haphazard approach.
Hey there Renee,
I have a small business but I’ve always wondered how to sustain my business to match my competitors. Its a thrilling idea opening up one but its very tiring sustaining one.
I love these tips you’ve shared but I have a question. Would it be a good idea to open an entertainment business in a not-so-developed area?
Thanks for stopping by, Riaz. I can’t answer that question with confidence. Before starting any business, I think it’s a good idea to run the numbers. I’ll give you an example. Let’s say I wanted to start a restaurant in a town of 1200 people. I do the math and find that to break even, I’m going to have to serve 200 people a day a meal that costs at least $12 each. There’s another restaurant in town, and that restaurant is averaging about 150 people a day. Is it feasible that I’m going to attract 50 more people a day than the other restaurant averages? Possibly.
Why is the other restaurant only serving 150 people a day? How will I set myself apart to attract customers? Can the town support two restaurants, even?
I’d love to give a blanket yes or no answer. However, there are many other questions to ask and too many factors to consider. If you’d like to try to run the numbers yourself, I encourage you to complete an income statement and cash flow sheet, and even a balance sheet.
Gotta say. I automatically love the name of your website. Your advice is awesome and consider this site bookmarked. I also love how you promote minority-owned businesses. Too many get left in the dust and many of them are fantastic. You do an excellent job putting it in prospective for others about all the challenges we face when owning a business compared to everybody else. Thank you for that.
Thanks for stopping by, Deanna. I appreciate the compliments. 🙂 Typically, running a business isn’t a walk in the park When I first started advising, I got asked the question, why don’t you open your own business and advise on your own. My answer was owning a business was too stressful, time consuming, and a lot of work.
Like you said, going into business for oneself is challenging. Not everyone is cut out to be a business owner. And that’s okay. However, I want the best for those who do decide to go into business. I get excited when I hear about new businesses opening, especially with services/products I use. Since I live in a smaller community, really get to see the impacts.
I am amazed at all the free information you provide on your website, I have been tempted to start my own online business but I have no business experience at all.
Can you steer me to a good training program to learn how to start and operate a online business, so overwhelming with so much to consider. Taxes, Laws, Expense To Start UP?
Excellent question, Jeffrey! Every state has a Small Business Development Center (SBDC). These centers offer free and low cost advice to entrepreneurs. The SBDCs are partially funded through the Small Business Administration (SBA). You can find a list of offices here: https://www.sba.gov/tools/local-assistance/sbdc. I recommend them as a first stop for entrepreneurs.
You really give a nice wide range of aspects to consider as valid strategies to grow a small business. Having the right technology certainly can be advantageous. My husband operates as a satellite installer contractor. Finding a way to receive mileage fee charges from customers can be a challenge. People don’t always have cash available or even use a checkbook. Finding the right technology would really benefit his business. We will have to continue researching what is available because 50% of the time he is not even within a cell service area.
Thanks for dropping by, Ellen. It sounds like you’re looking for a point of sales system that tracks mileage. Most of the major accounting software, like FreshBooks, Xero, and Sage, have expense tracking features. So, you’d be able to add your mileage. They also have point of sales (POS) options. Some POS systems also have the ability to accept payments in offline mode. That can come in handy when you’re not within range of a cellphone tower.