Profitable Business Growth Strategies for Your Company


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Growing a profitable business is easier said than done, and businesses of all sizes encounter numerous obstacles. Do you want to know how to ensure the long-term viability of your company? 

You must create a growth strategy for your organization. If you don’t have a sound growth strategy in place, you’re increasing your chances of losing your business to the competition.

You don’t have to be a multibillion-dollar worldwide brand to wrest market share from your competition. What you require is an unstoppable business expansion strategy. Of course, with expansion comes risk. As a result, successful businesses rarely rely on a single strategy especially during this pandemic when employees are more interested to work from home. 

Instead, they employ a variety of growth tactics to achieve success, including market development, disruption, product expansion, channel expansion, strategic partnerships, acquisitions, and organic growth. 

You have to spend both money and time searching for the ideal employee who can sincerely work and even from home. Here’s an employee onboarding checklist to make sure your new hires get off to a fantastic start, whether they’re working remotely or in the office.

If your company needs a boost—and fast—it is time to find out which growth tactics can be implemented. This article will teach you how to expedite business growth so that your company has the best chance of long-term success.

Market Development (Market Penetration)

A market penetration plan (also known as market development) is a business expansion strategy in which you seek to sell your existing items in untapped markets. Identifying new markets that would be a suitable fit for your present product line is part of this process.

Market development is a popular growth strategy since it enables you to expand beyond your current clients. As a result, you’ll increase your market share. This form of segmentation may involve focusing on a new sector, demography, corporate department (e.g., shifting from HR to finance), or geographical region. 

Facebook is a prime example of a company that has used market development as a corporate growth strategy. They began as a product only available to Harvard University students. Beyond the initial focus on colleges, Facebook has since expanded into a wide range of consumers.

Diversification Strategy

Diversification is a corporate expansion strategy in which your organization sells new items or services to new markets. Whereas prior company strategies have at least one existing market or product, diversification plans have both. It is one of the riskiest business growth tactics, but if you have a fantastic idea and have done your research, it can work.

Businesses must first assess their competition to successfully launch a new product in a new market. They must also comprehend the goals and needs of the people they intend to target. As a result, market research is an essential element in developing a diversification company plan. To meet your new target market, the marketing mix—price, product, place, and promotion—must be arranged.

Product Expansion

To appeal to their existing audiences, small firms might greatly profit from expanding their product ranges or adding new features. You may be suffering a drop in sales or profits as a result of obsolete technology or products. If this is the case, it may be time to broaden your product portfolio.

Gillette is another brand that sells a variety of comparable items. When sales of your items begin to fall, it’s time to phase out weaker products and present newer versions to your loyal customers as a starting point. Any company whose products are no longer meeting expectations can profit from product or service expansion, but keep in mind that pre-expansion research is critical to avoid failure.

Concentrate on Market Segmentation

Small firms, in my experience, frequently struggle in huge marketplaces since it is practically impossible to compete with larger brands. As a result, you may need to reconsider your brand’s position in your market and narrow your focus.

Market segmentation entails breaking a larger market into smaller groups based on demographic data or purchasing behavior. Then, as your target audience, you can select one of these segments. Marketing to a very precise group of potential clients is significantly easier than trying to appeal to a large range of people.

If you sell more than one product, market segmentation might assist you in advertising different things to different buyers. It takes some rigorous research to determine which market segments are most likely to purchase each of your products, so be prepared for a time-consuming procedure. 

You can uncover trends in your existing customers’ demographic or behavioral traits by using email surveys, website analytics, and purchase histories. You may build more focused adverts for potential buyers once you’ve identified the most appropriate market segments for each of your product categories.

Strategy for Alternate Channels

Business growth via an alternate channel approach comes from pursuing clients in a different way than usual. Deciding to sell your things online is a prime illustration of this. 

Aside from selling online, you can use the Internet to give your customers new ways to access and connect with your products or services, such as through a business model based on software as a service (SaaS), affiliate marketing, subscription service, or renting rather than outright purchase. Simply by expanding the routes between your company and its customers, you can generate new and additional revenue streams.

Don’t Forget About Your Current Customers

Prioritizing new consumers over existing customers is one of the most common and damaging mistakes entrepreneurs make. While expanding your customer base is crucial, customer retention and loyalty are the ultimate keys to success. 

It is easier to persuade an existing customer to return to your business than it is to persuade a new consumer to give you a chance. Retaining customers can greatly boost your profitability, and returning customers are also a good source of word-of-mouth promotion.

Conclusion

To summarize, by developing a good business development strategy, you can breathe fresh life into your company, regardless of the market. Just bear in mind that each business strategy or plan is the same; it is critical to determine what works for your specific sort of business and adjust it to the resources at your disposal, the needs of your target audience, and your corporate vision.

Well-executed business growth and expansion initiatives will increase your company’s market share. Even if it means incurring a short-term financial loss, they can put you ahead of the competition and keep you there in the long run. Best wishes!

 

Jeff Campbell

Jeff Campbell is a father, martial artist, budget-master, Disney-addict, musician, and recovering foodie having spent over 2 decades as a leader for Whole Foods Market. Click to learn more about me

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