It’s challenging to expand a small firm or any business, for that matter.
Many small businesses want assistance to achieve their growth goals for product expansion due to the difficulties of acquiring clients, growing their profit, developing a solid marketing strategy on a tight budget, and many more.
However, as a business owner, you have a range of possibilities to expand your company and raise your revenues. And if you’re prepared to put in the effort, you may use these methods successfully, outpacing rival businesses and achieving your organizational objectives.
What Is A Business Growth Strategy?
A business growth strategy is a plan outlining your efforts to advance your company’s growth.
Your growth plan can resemble this:
- Raising sales and market share
- Purchasing assets
- enhancing goods or services
Growth strategies outline how you’ll overcome obstacles to develop your company, boost sales, attract new clients, or accomplish any other objectives you’ve set.
Your growth strategy has to be more comprehensive. It is a top-down map showing your progress toward your objectives. Once your broad growth strategy is in place, you may delve into the finer, more specific elements of your social media marketing or product development methods.
Your business growth strategies will help you succeed if they are correctly implemented. Customer happiness is a crucial indicator of business success. You must satisfy your consumers so well that they choose to do business with you rather than a competitor, return to you for future purchases, and refer you to their friends.
But getting there isn’t always straightforward. Small business expansion requires a lot of hard work. You must be willing to put in the difficult work needed if you want your business growth strategy to be successful.
How To Choose The Right Strategies For You
This blog discusses several growth plan possibilities. You do not need to use them all at once. All of these concepts cannot be implemented simultaneously in an efficient manner.
The business growth tactics you use should instead be in keeping with your present budget, goals, deadlines, level of competition, and targeted market share.
Considering your long-term business objectives before focusing on strategy is a great idea. You must thoroughly understand your audience, products, and brand. Next is the component of design.
For instance, connecting with your audience on social media may be your strategy to increase customer retention.
Or, if you want to improve revenue, the best course of action might be to generate more quality leads.
7 Business Growth Strategies To Try
If you run your firm, you can increase your revenues in several ways. There are numerous other growth tactics you can choose from, like focusing on new clients, advertising current products, imitating successful businesses, and more. Some of my favorites are included here.
Increase Your Number Of Qualified Leads
By increasing the amount of qualified leads, your firm can expand. Any person who has engaged with your business is considered a lead. However, someone who satisfies the requirements you’ve established for possible clients of your organization is capable of information.
Focusing on qualified leads instead of leads is good because qualified leads are more likely to buy. Don’t waste your time with any old information out there. Instead, define your ideal customer profile to determine which charges to focus on. Create a customer avatar by asking yourself these questions about the customer:
- How old are they?
- Are they male or female?
- Do they have children?
- How much money do they make?
- What are they interested in?
- What are their priorities?
This will help you refine the process to attract interested prospects to your business.
If 5 out of 10 prospects buy from you and you can increase the number of people coming in from 10 to 20, you will increase profits by 50%.
Convert Prospects Into Buyers
You can develop your business by increasing the number of prospects you convert to buyers. This is the measure of the effectiveness of your sales efforts.
Increasing your conversion rate from one out of 10 to two out of 10 can double your sales and increase profits.
Improving your ability to sell and convert interested prospects into paying customers is one of the most important things you can do.
So… how do you get there? The first step is understanding your prospect. You should know who they are and what they want. Then, you can segment your audience and meet them at whatever stage of their customer journey.
- Use data and insights to help.
- Consider running A/B tests with emails or other marketing content.
- See which of the two variations performs better—then take it and run with it.
Identify Your Challenges
If you’ve been running a small business for any time, you already know that making sales is not as easy as it may seem. You might be facing challenges like:
- Building trust
- Finding qualified leads
- Connecting with customers
- Upselling and retaining customers
- Integrating your marketing
You can’t overcome your challenges unless you know what they are. That’s why the first step is identifying your struggling areas.
Look at the critical areas in your sales process and seek ways to improve in each room. A slight improvement in each key area can lead to an enormous improvement in overall sales results.
Staying motivated to achieve those sales goals can be challenging, but is vital to developing your business. Your problem-solving ability is a crucial determinant of how much you can accomplish with your business.
Increase Individual Sales
Another way to grow your business is by increasing the number of individual sales you make to each customer you acquire. Increasing the purchase frequency by 10% will boost your sales and profits by the same percentage.
What are some things that you could do to get your customers to buy more from you and to buy more frequently? Put yourself in your customer’s shoes and brainstorm some tactics that might help convince them to purchase.
The size of the sale and the profit that you earn from each one impact your profit margin. It would help if you continually look for ways to upsell each customer (persuading them to add something else or something more expensive to the order) so that they buy more each time they purchase from you.
Grow Your Profit Margin
Profit margin is the gross profit you make from selling each product or service. You can increase profits per sale by continually seeking ways to raise the price or lower the cost of your product or service without decreasing the quality.
Every time you raise the price of a product, that extra ($$$) will flow straight to your bottom line as pure profit (assuming you hold costs constant). Every time you’re able to reduce expenses, that saved money will also go right to the bottom line (again, assuming you hold sales and revenues constant).
Lower The Cost Of Acquiring Customers
My next tip is to lower your cost of acquiring a customer. Customer acquisition cost is the money you spend (on things like marketing) to gain a new customer. By reducing your customer acquisition cost, you are lowering the amount you pay to acquire each paying customer.
Continually seek creative and innovative ways to improve your advertising and promotions so that it will cost you less to buy each customer. This can dramatically impact and increase the profits of your business.
Use Customer Referrals
Increasing customer referrals can boost your profits. Customers that are referred to your brand are 18% more loyal. They also have a 16% higher lifetime value and a spending rate that’s 13.2% higher.
Think of ways to get more customer referrals. Could you make your packaging and unboxing shareable? Could you implement a customer referral program? Or consider forming partnerships with other service providers.
Developing one or more proven referral systems for your business can positively impact your sales and your business. Word of mouth is an essential tool for any business. Don’t overlook its importance!
Tips To Increase Your Sales
Are you trying to see more organic growth in new markets and your current market? I recommend these marketing efforts to see success with increased revenue and more sales.
Connect With Your Customers
One of the most successful growth strategies you can implement is simply connecting with your target audience. Whether existing or new customers, reaching out to the people likely to purchase from you is a highly effective way to increase revenue and see repeat business. Companies that work to foster an emotional connection with customers see 85% more sales growth than competitors!
Today, there are myriad ways to connect with different customer segments, even if your customer base is spread worldwide. Reach your target demographic using social media platforms where they spend their time. Use social media to:
- Provide valuable information
- Teach or explain something
- Show proof that your product/service works (testimonials, photos, before-and-afters, etc.)
- Respond to comments and answer questions
Once a customer has purchased your product, work to retain existing customers by maintaining a solid relationship, ask for their feedback, reach out to them with regular, personalized emails, and consider starting a customer education program that will continue solving their problems long-term.
Your job is to provide value in some way, shape, or form to your customers. But sometimes, people need a little nudge in the right direction before they leap to buy into whatever you’re selling.
Give customers a taste of your offer by offering a freebie to build trust. This freebie can be a taste of your actual product or service, or it can be something that supplements it. For instance, you might consider offering:
- An ebook
- A webinar
- A consultation
- Behind-the-scenes content or insider information
- A template
- A course
- A free trial
- A discount
Whatever your freebie is, it should be valuable in and of itself. This is how you earn the trust of your leads, get them excited for what’s next, and drive an actual sale.
Present Your Product Effectively
How you present your product or service has a significant impact on whether or not somebody will make a purchase. Giving your effect effectively will help you increase sales by increasing conversion rates, the rate at which you convert leads into paying customers.
Start by developing your competitive advantage. You need to know:
- What are your competitors’ claims?
- What are the benefits they’re selling?
- How is what you’re offering different?
- Why should people choose you over somebody else?
Once your unique angle is figured out, your messaging should reflect it. Align your content across all marketing channels by picking one to two key benefits your product offers and stating them clearly in all marketing and sales content.
Finally, make sure the price is right. Understand the costs of producing the product and get a feel for what your ideal customer would be willing to pay. You must also know what your competitors charge for similar products or services.
Invest In Yourself
One of the most critical business growth strategies is to invest in yourself, your skills, and your abilities. Pulling back and spending money and time on yourself might sound counterintuitive. But it might be the key to reaching your target market–because improving your ability to sell and convert interested prospects into paying customers is one of the most important things you can do to boost sales.
Consider attending sales training to help you learn, practice, and hone your skills. I also recommend learning how to negotiate. This will help you improve customer relationships and drive more sales.
It would be best if you also created a prospecting strategy. The best salespeople will plan to develop the highest quality and quantity of prospects that can and will buy within a reasonable period.
Steps To Grow Your Business FAST
If you’re looking for rapid growth, don’t cut corners! A successful business growth strategy needs to be done right. Here are the steps to reach existing and potential customers better.
Improve Your Sales Process
Your sales process is made up of several repeatable steps you take to move a prospect from awareness to purchasing. According to most experts, the sales process has seven stages:
- Making contact
- Qualifying the lead
- Nurturing the lead
- Presenting your offer
- Overcoming objections
- Closing the sale
The tighter and more muscular your sales process is, the more likely you are to make sales. Improve your sales process by considering what your current process looks like. How many prospects make it successfully to the end of the line? After measuring recent performance, project the sales you’d like to make. Then, calculate the changes you’ll need to make to reach that number.
Get Business Coaching
Remember how I said earlier that investing in yourself is critical to increasing sales? Getting business coaching is one way to invest in yourself and your business. Having an experienced mentor you can rely on for help with your business is a hugely valuable resource that cannot be overstated.
Business coaches are typically highly experienced entrepreneurs and business owners. They can help you do things like:
- Define your goals
- Plan business growth strategies
- Execute those strategies and troubleshoot where needed
A business coach will learn about your brand, help you set goals, and guide you as you carry them out. In one study, 22% of companies reported that business coaching increased profitability.
Reach Your Business Goals
No, business growth isn’t always easy. But it is 100% possible–and these growth strategies will get you there.
Before you can jump into action, however, you need to set vital business goals. These goals are the foundation on which your strategy should be built.
If you need a hand setting better goals, check out my SMART Goals Cheat Sheet. This free resource explains.