7 Proven Business Growth Strategies that Work

Businesses are built with hard work to grow into thriving entities that generate excellent revenue. These ventures must make their way through various challenges to secure a position in the cluttered marketplace. However, many fail to meet their envisioned goals, and their journeys are cut short because of damaging decisions and strategies.

Thus, it becomes imperative for the entrepreneur to plan the expansion of the business carefully. It involves following proven growth strategies with a successful track record and producing outstanding results. These are influential in outperforming tough competitors and carving a niche for your brand. Here is a list that can help businesses grow.

1. Market Expansion

The best way to expand the business is to acquire new customers by entering a new market. Entrepreneurs need to identify a location with a substantial target audience population to start trading for higher profits. Before entering the market, they need to ascertain that they have the required resources to fulfil the demand in the new region.

Otherwise, the strategy can backfire if there is a lack of supply, but the demand is high. The strategies employed to grab the attention of customers in the new market include using brand awareness advertising and digital marketing to create a buzz. It is also helpful to establish the uniqueness of the products in the new market to offer a distinct value proposition.

2. Product Diversification

Profits can be enhanced with the help of new products through diversification of the product line. It helps to grab new customers who are familiar with the brand but have yet to start using its products. For example, if the business has been selling a face cream for women, they can start a cream for men to increase their customer base.

Thus, the business can start selling more products in the same location. Improving the bottom line with this technique helps if the entrepreneur wishes to sell business online. It is essential to introduce complimentary products that showcase the expertise of the brand in the field.

3. Market Disruption

In this growth strategy, the entrepreneur enters a market that is dominated by a handful of long-established brands. They enter the market by changing the course of action through an innovation that disrupts how the market operates.

For example, the mobile phone category was led by Nokia and Motorola for a long time until Apple forayed into the segment with iPhone and changed the world of telecommunication. Thus, creating an upheaval in the market involves introducing a new business model, innovative features and technological advancements.

4. Different Sales Channels

Businesses with brick-and-mortar stores can venture into e-commerce, and those selling online can increase on-ground visibility through physical stores. Customers like both the physical and virtual presence of a business, and having two sales channels can increase sales volume immensely.

Online platforms allow the business to reach a wider geographical region across the country and even offshore. Also, business owners can utilise social media to sell their products. Utilising the right sales channel aids in greater visibility and higher sales.

5. Partnerships and Acquisitions

While acquisition requires capital to take over another entity and expand the business, partnerships are more affordable. Businesses selling complementary products can enter into a partnership to gain and learn from each other. They can utilise each other’s resources, talented workforce, advanced equipment, and customer base to develop and grow.

Businesses can also consider franchising which allows them to establish new units with the help of franchisees. It reduces the workload and brings more revenue from the new unit. Also, franchising helps in reaching new locations and building a national brand without breaking the bank.

6. Funding the Expansion

Capital is the basic requirement for business development because it requires investing back into the business. Entities that have a significant cash flow and negligible debt can afford to grow organically. However, ventures that wish to grow through a strategic move need funding.

Usually, venture capitalists and investors who believe in the product and its success agree to finance the venture. It helps the business to gain the required funds for expansion and they have to offer equity to the stakeholders in return. It allows the entrepreneur to maintain control over the business and continue to be the decision-maker and a successful business owner.

7. Leveraging Existing Customers

Growth is usually measured by an uptick in sales. A business needs to register a year-on-year sales growth to achieve its targets, and it can be achieved by selling more to existing customers. Since finding new customers costs the business a significant amount of money, employing sales-boosting methods proves beneficial and affordable. Entrepreneurs planning to sell a business online utilise this method to showcase positive growth to potential buyers.

The common ways of increasing buying are offering discounts to loyal buyers, free gifts, money off on the second purchase, product bundle offers, referral programs and more. Upselling is another way of influencing the buyer to purchase a high-end product than a cheaper variant. Also, the cross-selling technique results in higher sales as customers are persuaded to buy complimentary products after purchasing one item.

Conclusion

The business owner can choose from various growth techniques to flourish and continue to exist in the market for decades. It is essential to identify the strategy that best suits the entity and has the capacity to fulfil its goals.