Is it time to go next-level with your business? Implement these business growth strategies for success.
This article is published by Modoras Accounting (QLD) Pty Ltd V11022019
The Best Growth Strategies for your Business
Business growth is vital. But it doesn’t just happen all by itself. For most businesses, you need to be intentionally applying growth strategies to drive your success.
But what are business growth strategies? Essentially, business growth strategies are meaningful actions you can take in your business to help it grow. These are usually planned actions that are part of a bigger strategic project to help take your business to the next level. One-off actions here and there are unlikely to have as much impact as actions that are part of a designated strategy.
The marketing strategies for growth are often attributed to a product/market matrix develop by Igor Ansoff. The Ansoff Matrix shows how companies can adjust certain levers with their product or target market to obtain growth.
Don’t get left behind in the market, see whether your business could benefit from some of these strategies.
Market penetration – Increase market share with your existing products in your current target market
This strategy is designed to work towards gaining market share in the same market you currently sell your product or service. This doesn’t happen by chance – you will need to take new action for change to occur.
Increasing market share is a common goal for businesses looking to grow. A substantial market share positions your business as the trusted brand with a superior product.
There are actions you can take to sell more to existing customers or sell your product or service to a wider audience within your existing market.
These may include:
- Adjusting your price
- Improving your product
- Increasing promotion
- Exploring new sales channels
Market expansion – Find new markets for your existing product
It’s time to take a good look at the solution your product or service provides. Are there other markets you can help? You might find yourself targeting new geographical regions or it could mean targeting customers in a completely different industry or demographic.
If the answer is yes, the first step is to define your new target market. How are they different from your existing customers? Will they be using your product or service in the same ways as your existing clients or differently? Consider how you might need to adjust your marketing and promotion to this new market segment, and also any ramifications for your existing clients.
In other cases, market expansion might mean creating a new use for your product. This might involve adjusting or adding features and benefits, or alternatively, just focusing on different attributes in your marketing.
Product development – Expand your product line for your existing market
Another growth strategy that is successful for many businesses is product development. This might mean developing new products that are complementary to your current range. Or in other cases, it could mean adding new features to your existing product.
Other product development approaches can involve improving customer service so that clients perceive an increase in value, or packaging products together to increase your ability to upsell to clients.
For most businesses, product development means selling more to an existing market. Because you should know this market well, you are more likely to understand their pain points and know what you can provide to them to help.
Diversification – New products to new markets
Diversification is the saviour of many businesses when industries change, legislations are amended, or new competitors enter the market, among other scenarios.
This is a process of developing new products to expose your business to a new market. You may have identified a gap where you can provide a solution.
If you develop a complementary product to one you already make, this may save you money in equipment purchases or manufacturing costs if your existing equipment can be used. There may also be manufacturing efficiencies you can introduce between your existing products and your new product.
But unlike some of the strategies outlined above, diversification can involve more risk as it involves both an untested product and an untested market.
The payoffs however can be more substantial. When diversification is a success, your business won’t be reliant on the one market or one product for your revenue. This is an important risk mitigation strategy.
Acquisition – Expand operations by acquisition
Expanding your business through acquisition can be quick, but it can also be costly and, if poorly managed, risky. The benefit of growing your business through acquisition is the speed of growth compared to other marketing strategies that rely on organic growth, which can be slow. In addition, acquisition can sometimes backfire if customers feel strong brand loyalty to the acquired company but a disconnect to your business. Careful client communication and a smooth transition period can help to mitigate this risk.
Before embarking on acquisition as a growth strategy, it’s important to undertake a thorough cost benefit analysis to see whether this option is suitable for your business.
Get help with the big picture thinking
We are big picture thinkers at Modoras. And we can help guide you to business growth you may not have imagined. Some of these strategies may not be suitable for your business, but we can help you find the ones that are. You’ll experience the greatest benefit if the tactics you implement are part of a planned growth strategy worked out specifically for your business.
Book a business growth consultation with a Modoras Business Advisor today. You can contact us here or on 1300 888 803.
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