Business growth does not happen by chance. Every business is unique and every business growth strategy is wholly individual, which is why it can be such a challenge to find the right solution.
Move your business from the slow lane to the fast lane!
Some business owners are stuck in the slow lane thinking, “I just need more sales” throwing more resources to that end; hire more, better sales people, place more advertising. But throwing more money and people at the market without a sound business strategy behind the move is unlikely to achieve growth.
If you want to achieve business growth, improve profitability, win greater share of your chosen markets you need a strategy that can include:
- Marketing strategies for dynamic business growth
- Business improvement from increased efficiencies and resource utilisation
Four Marketing strategies for dynamic business growth
Don’t limit your business growth by only thinking how to get more customers. There are exciting options for growth. But it does require you to step out of your comfort zone and think about your business differently:
Strategy 1: More sales to existing customer groups
Our experience is that most businesses fall into the 80 – 20 syndrome; 80% of their business comes from 20% of the customer base.
What makes your “Top 20%” customer? Is it the number of transactions over a year, how much they spend, or is it simply that they are low maintenance. You need to become intimate with the characteristics of your “Top 20% Customer” and then you can build strategies to get more.
Also ask yourself, how you can transform other customers into Top 20 Customers?
Strategy 2: Selling into new markets
No business has been able to dominate a market forever. New market strategies are the way that all businesses need to be thinking.
In addition to who is already using your products or services, you should also be looking at who isnt.
For example, dont just accept the “quiet” or “down” times in the business - look for ways to sell into different markets to attract an entirely new customer base.
Stepping back and thinking outside the box in this way can immediately increase profitability.
Strategy 3: Offer new products or services to existing customers.
Have you asked your customers what other products or services they want or need that with your capability you could provide? This exciting option can transform the bottom line.
For example if an average customer spends $100 in a single transaction an additional product or service that increases that amount by $30 brings a 30% improvement to the bottom line.
Another alternative is to look for ways to increase the number of transactions each year. Simple but effective.
Organizations like McDonald’s are experts at this. The emerging healthier eating trend has been brought us McFresh, the fascination with cafes and coffee brought McCafe.
New product development can be a crucial business development strategy for firms to stay competitive.
Strategy 4: Develop new products or services for new markets
This is a higher risk option; however diversification could be the opportunity for growth for your business. For example the Virgin Group has over 200 branded products and services. Whilst many are well known, not all have been successful.
Although this is a higher risk option, it could be worth investigating if your capability is under utilized.
Three golden rules for business growth from improved efficiency & resource utilisation
Rule 1: Dont misuse your time and resources
Some of the tasks and jobs you’re doing could and should be undertaken by someone else, internal or external.
For example, how much of your team time is spent on tasks not relevant to business growth? In our experience, misuse of time is one of the major impediments to business growth.
Your job is to put the systems in place for people to work with, make sure the business is growing and focus on building your brand and reputation. Working ON the business!
Rule 2: Delivering consistent value to your customers every time
Key to business growth is developing systems to deliver consistent service to your customers every time. This is why successful franchises work when others in the same industry fail.
Systems and processes significantly improve:
- Business performance
- Profitability.
- The value of your business.
The goal is set the business up so it can run without you. The correct procedures, enable your staff to operate the business in a consistent manner, whether you are there or not.
Not sure where to start? Try focusing on the ways you and your team, come into contact with your customers. Examine each of these customer touch points– ask how could this be systemized or improved to create a better and more consistent customer experience?
Rule 3: Have the cash needed to fund your business growth
Remember every $ of growth will need to be funded. Ignoring this principal will lead to sleepless nights and tears.
If your growth means increased sales, how will you fund the increased inventory? If you give your customers credit, you will be owed more money by your customers. Have you got enough funds to finance them?
How do you find out what cash you will need to grow your business? Prepare some financial projections – a cashflow forecast. To try and grow a business without undertaking this exercise it like driving your car blindfolded – you are an accident waiting to happen!
Imagine the possibilities!
Imagine leading the energetic activity to transform your business from the slow lane to the innovative leader in the fast lane of your industry or sector. This is what we at ClientEdge witness with our clients when taking them through this dynamic process of business growth.
if you are committed to a business growth strategy call us today for a free discussion on 03 9524 3150.