Are you wondering how to grow your business now that you’ve experienced some success? Understanding key growth strategies, including new technologies or economic fluctuations, is critical for adapting to change, regardless of where you are located or what industry you are in.
A structured approach using strategic expansion tactics can benefit both small business owners and established companies can effectively help you scale your business. Yet most people either don’t know where to start growing their business or have so many ideas for expansion that they’re unsure which to pursue.
But it doesn’t have to be overly complicated. For instance, Amie Hoff, New York fitness trainer, corporate wellness consultant and public speaker, co-created FitKit, a series of portable kits with all the tools needed for a full-body workout, along with more than 200 exercises via FitKit’s digital exercise library. She is an example of someone who successfully grew her revenue stream and says that doing more doesn’t have to be complicated—as long as you do your homework. By following this type of blueprint, you’ll be able to attract more business opportunities over time.
10 Business Growth Strategies
Learning how to expand your business takes time, patience and diligence—not to mention innovation. Here are 10 business expansion strategy steps to start taking action today to build a scalable brand.
1. Conduct Market Research
The first step is to assess the current market to better understand your existing customers, competition, and company growth strategy. You’ll want to determine your target market and their needs so you can adjust to meet those needs as you grow. Understanding your competitors’ strengths, weaknesses, offerings and plans will also help you formulate your own. Read industry reports and websites, peruse competitors’ materials, conduct surveys and interview current and potential clients.
Hoff’s research winnowed her options and educated her on exactly what she was getting into with expanding her business. She studied fitness industry publications, joined networking groups and examined industry trends on blogs and in webinars. “Most [of these sources] offer insight into what is already being done and how you might fit in,” Hoff says. “I also connected with human resources directors and corporate wellness managers to better understand what was being done, what was lacking and where and how I could offer my expertise. Most people are willing to share their experiences and offer guidance.”
2. Map Out a Growth Strategy
Once you gather enough research, it’s time to write your growth plan. Follow the SMART goals philosophy to develop your plan (make goals strategic, measurable, achievable, relevant and time-bound). Include these goals—along with mission, vision and procedures—in a business map to follow as you work to grow your business.
Hoff’s research gave her a handle on the anticipated costs and timeline of expanding her business. “You must understand the cost of developing and the time involved. Then you have to be realistic about what you have and are able to spend,” she says. “Putting every detail on paper shows you the reality of what you are up against and whether you can make it work.”
3. Hire the Right Team Members
Once your plan is set, start building your team by hiring the right people to meet your outlined goals. Try to carefully match employee skillsets to the company’s needs and choose people who will enhance the workplace culture. Incentivize them with a competitive salary and attractive benefits so they are dedicated to the company’s success and want to stick around for many years.
4. Add New Products or Services
You can reach a broader client base by diversifying your products and/or services. This may look like spin-off products and services from your core options that help meet the more specific needs of your customers. Or it could be a different way to provide the same information, such as an e-book or audiobook. Perhaps you offer a membership or subscription versus a one-off product.
Hoff could have booked more personal-training sessions to expand her offerings, but there are only so many hours in a day. To make more money and reach more people despite limited time, she expanded by selling FitKits to corporate wellness programs and moving into corporate consulting. In the process, she tapped a new pool of clients and greatly increased her income.
5. Network Widely
Another great way to continue expanding your business is to participate in a variety of networking events, such as attending and speaking at conferences, participating in webinars, connecting with others online and hosting or co-sponsoring events. Not only can you build new relationships that could ultimately lead to new sales or partnerships, but boost your credibility and brand visibility as well.
6. Prioritize Customer Service
If your customers aren’t happy, they won’t come back. That’s why it’s critical to prioritize customer service to increase customer satisfaction and retention. By building customer loyalty, you can end up increasing sales. Make sure you address their concerns and give them the best experience possible.
Build engagement by sending out a newsletter, posting and engaging with customers on social media, offering freebies or special deals and creating a customer loyalty program. Hoff, for example, gave potential corporate clients a free taste of her FitKit, a step she calls “a small price to pay for the experience and feedback.”
7. Form Strategic Partnerships
Consider combining efforts with other businesses so you can grow together—through one another’s audiences. Gaining additional followers builds your clientele and piques audience interest. You can also match your products with someone else’s services for a special client offer. This could be a one-time offer—or you could develop a product or service together for both of your clients.
8. Expand to New Markets
Explore the feasibility of expanding your products or services into a new market, including the competition you’ll be up against and the costs involved. This may include marketing, new office space or travel expenses. You’ll need to evaluate the investment and risk required upfront to reap the future benefits of reaching a broader audience.
9. Boost Online Marketing
You may be wondering how to grow your business online. Digital marketing is extremely important today. Ensure your website is modern with updated information, you are active on social media and listed in as many online business directories as possible. You’ll also want to build an effective sales funnel to help take your business to the next level by converting leads into sales.
10. Invest in Technology
Invest in the latest technologies to streamline your business. A customer relations management (CRM) system like Salesforce can help manage relationships with existing and potential customers. Automate payroll and manage accounting with a system like QuickBooks. By tapping into these resources, you will work more efficiently and in turn, can focus on more important tasks, like how to expand your business.
Common Challenges in Business Growth and How to Overcome Them
Even if you follow the steps above to a tee, you are bound to face obstacles trying to scale your business. Here are a few of the most common challenges to keep in mind:
- Unsuccessful employee recruitment: If you struggle to attract the talent you need, expand where you post the job description and consider hiring a recruiter.
- Limited financial resources: Look for outside funding, like investors or taking out a loan, to get the financial boost you need to keep growing.
- Unable to keep up with inventory: If the orders are coming in more quickly than anticipated, look to solutions like order management systems and just-in-time inventory management solutions to stock products as needed.
- Decision paralysis: Feeling stuck and not sure what direction to take? Hiring a business coach to work through strategies for growing a business can be incredibly helpful.
Conclusion
If you want to know how to grow your business, start with a solid, research-backed strategy you can follow as your guide. By outlining clear goals and updating them as circumstances change, you can continue to expand into new markets, attract new customers and design the business of your dreams.
Just be ready to give it your all. “Trying to create something part-time will not allow you to truly grasp the full potential,” says Hoff. “As scared as I was, I took a hiatus from my personal-training clients, who were my bread and butter, to put more effort into consulting. You won’t know if something is going to work unless you give it the time and energy to find out,” she says.
This article was published in February 2015 and has been updated. Photo by fizkes/Shutterstock
