When running a successful business, you’re probably always looking for ways to grow further. However, if this is your first company, it cannot be easy to figure out where to start. To help you out, here are some of the best business growth strategies that will help you in your endeavor.
Business Growth Strategies You Can Adopt In Your Business
Expand into other markets
For starters, you can start looking into different markets. The strategy of selling your products in untapped markets is called market development or market penetration and can be a great fit for you. It means you can gain more customers by either opening yourself up to a new demographic or geographical location. For example, consider how Facebook expanded from only Harvard to Yale, Columbia, and Stanford, then to universities across the U.S. and Canada, and then to all individuals across the globe, disregarding the focus on colleges.
Diversify your offer
In addition to joining new markets, you can consider adding new features to existing products or developing completely new ones. This is a very effective strategy as it opens your company up to new potential customers who had never heard of you before or weren’t interested in what you have to offer. Take Semrush, for example. It started as a company that used to offer SEO services, but it introduced new features over time and now has a comprehensive software suite. Its target audience never really changed, but the services appeal to a bigger audience.
Offer something new on the market.
Market disruption is something that can also work in your favor. This entails stepping onto a market that has typically been dominated by a few big brands and offering something different from everyone else—the ways to approach this vary. For instance, you can adopt a new business model that differs from other companies. You can offer better or cheaper products. Or, you can use some innovations and completely transform the game. For example, Slack is well on its way to replacing email communication in business.
Furthermore, the Pet Tap company changed the game by improving smart pet ID locator tags. As a result, there is no need to check with the vet if a pet is microchipped. If someone finds a missing pet, it should promptly be returned to its owner.
Use new distribution channels.
Another business strategy that you can adopt is using new distribution channels. That means you don’t have to develop new products or change your current ones. For instance, in addition to having your brick-and-mortar stores, you can also consider opening an online store and vice versa. For example, Allbirds, a company specializing in sustainable shoes and clothing, used to be a purely online store. However, as of December 2021, it has 35 physical locations as well. So, make sure to utilize all the channels at your disposal if it makes sense for your company.
Form new partnerships
Something else that can help you expand your business is forming new alliances. For example, suppose you’re looking to take your business global. In that case, it’s a good idea to find some complementary companies in your new location to have someone recommend your products and services to an existing customer base. However, this approach works even if you’re thinking of expanding locally. It’s simply important to find like-minded people and companies with the same goals and vision as you but without direct competition. That way, you can create a mutually beneficial relationship that will provide both sides with more clients. Many companies worldwide work together on marketing strategies, but maybe you’ve heard of the Lyft and Taco Bell team-up that gave them free publicity.
Look into acquisitions
Finally, while there are many other strategies, perhaps acquisition is the best for you. Remember that this is only viable if you have a positive cash flow and debt capacity. If you’re able, you’ll see several advantages to this approach. For one, you will acquire direct competitors and thus reduce competition. Moreover, you will also get access to their technology and IP, which might have taken years to develop. Finally, you will also get access to their customer base. While it was back in 2005, Google acquiring Android was a great business move that allowed them to go head-to-head with Apple and iOS right now.
Consider these six growth strategies if you’re looking to expand your business soon. One or a combination of a few will surely work for you.