Maybe your business has good profits. Maybe your industry is experiencing stellar growth or your customers are expecting more products or services from you. Any of these developments could be an indication that your business is ready for the next level of growth.
There are numerous strategies for growing your business, but it is important to assess which strategies align with your overall vision. Here are six common ways to grow your business.
Reflect your Growth Vision and Strategies in a Business Plan
A good business plan stays with a business for as long as it exists.
Whether you need new funds for your proposed business growth or want to create a roadmap for your growth vision, a business plan is the first and best step toward achieving your objective.
A good business plan explains your growth plans, market conditions, resources, strategies, milestones and financial and growth projections. Having such a business plan in place streamlines your growth process.
Once your growth process is implemented, revisit your business plan to determine if you are on the set path. Compare business performance with your objectives and projections to see if you are growing. A good plan will also highlight areas where you are deviating and puts you back on the set path.
To be effective, a business plan must be revisited, reassessed and refined regularly. 6 months is a common time limit to revisit your business plan and revise it to meet evolving business needs.
The bottom line is that you need a business plan to succeed. If you need a business plan writer, get one. If not, start writing your plan yourself today.
Take Advantage of the Market
If the economy is suffering a slowdown, you could try to capture a larger share of the market. This can be achieved through aggressive marketing or by adjusting your product or service prices.
You could also identify newer markets where you believe your products or services can do extraordinarily well. This new market could be a new demography or a new geographic location.
Acquire Another Company
Acquisition is an effective strategy in cases where you have a good market demand in a specific geographic area but do not have the local contacts and resources to back up your entry. Acquisition gives you a readymade market and customer base, and helps establish your business faster.
Another format of acquisition is to buy a franchise. With a franchise, you’ll have an established name added to your business. Operations such as marketing are handled by the franchisor, and you can always rely on the franchisor to provide you with essential business support.
Introduce New Products/ Services
You could consider an entirely new line of products or a range that is related to your existing products or services. Be aware that this is a strategy that requires comprehensive research into the market, target audience and competitors.
Offer Franchise Opportunities
Franchising is a great way to expand your business and widen your presence. It is also cost-effective because you will not have to provide any capital; franchisees will be investing their own money to open a franchise outlet.
Offering franchising opportunities is beneficial if your business is well-established. Your business model must be easily reproducible by your franchisee outlets. You must also have good cash flow to provide marketing and other franchisee support.
If you are able to scale the infrastructure required to recruit, train and support your franchisee network, this can be a fast way to grow.
Perform Product and Process Analysis
In this strategy, you aim to grow your product profit margin. A common way to do this is by identifying products that are doing well and contributing to the profit margin, and those that are under-performing consistently.
Underperforming products may be discontinued – especially if they are affecting your bottom line or are not offering any considerable business improvement.
Another way to grow your profit margin is to study and monitor existing processes. Include improvements that will improve the overall efficiency of your product and thereby increase its salability.
Choose the strategies above that fit your business vision and take the first step to your next success.