Business growth is a phase where the enterprise expands and starts searching for new opportunities to generate more profit. Business growth is a feature of the company’s lifecycle, developments in market growth, and investors’ ability to raise equity.
This is a vital factor for the survival of any business. It’s because around 66% of the companies survive for two years, and half of the rest runs their business for the next five years. But only 33% stay in the field to celebrate their 10th anniversary. That’s the real cruelty of every business sector. So, choosing the right strategy for the growth of your business is extremely necessary.
Honestly, it’s not as easy as it sounds. You might be a wonderful leader, know exactly how to your business, and treat your business people. But believe me, that won’t make you an expert for choosing the right business growth capital for your business. It’s a critical scale-up minded business, and you need to have extraordinary knowledge on the market. But if you really plan to grow big, I can help you out.
In this article, I am going to discuss some enhanced business growth strategies and determine the use of them. Sounds interesting, right? Before starting our journey, I will suggest you leave all your works and concentrate on the article till the end.
What is Business Growth?
I am going to start from scratch. Do you know what business growth is? From the above discussion, you might have got some ideas about business growth. But in this section, I am going to discuss its definition a bit elaborately.
Business growth is a process to improve the overall performance of a business. Business growth may be accomplished either by improving its top line or income through developed product or service income or growing operating incomes or profitability through reducing costs.
Rather than growing from a particular aspect, a growing business expands in several ways. There isn’t any single metric for measuring business growth. Instead of that, business growth is determined by highlighting several aspects of a company. Let’s have a look at them;
- Company value
- Number of employees
- Number of customers
These are the common metrics, and a company can grow depending on these but not in others. A bit confusing, right? Let’s make this clear with an example. The growth of revenue doesn’t depend on the number of customers, and it can increase independently. Sometimes the existing clients can boost a company’s revenue by buying more goods, and this indicates the independent behavior of the metrics. A company’s revenue can increase even if the number of customers hadn’t increased. It’s also possible if one of the metric decreases. How? Look, if a company decides to increase its sales growth by reducing the price. Their sales growth will increase, but their overall revenue will go downwards.
This means defining the actual growth is quite difficult. So, those looking forward to developing their organization should analyze their key goals to decide their growth requirements.
For some start-up businesses, it’s nothing but an increasing number of total customers even if they face huge losses in the early stage. However, this will slowly increase their revenue and sales to cover up the costs.
What is Small Business Growth?
Most large businesses follow a similar strategy for the growth of their business, but this strategy is completely different for small businesses. Remember, I have stated a percentage of survival ration for a new business owner. Isn’t that horrifying? So, if you’ve just started out with your new business, you need to learn what is small business growth and what is its exact definition?
In general terms and according to the concept of expansion, there isn’t any solid answer to this question. It’s because small business growth is a huge concept that can’t be identified with a particular definition. Still, I can give you some definitions from the well-known persons but trust me; those aren’t going to be helpful enough to land on a correct decision. This is why most of the company depends on a number to determine their business growth.
Those numbers are known as the growth indicators of a business, and these growth indicators fulfill the lack of the exact definition. With the help of these, you’ll be able to identify whether your business is growing or not. If not, you can pay due attention to the exact numbers.
These growth indicator numbers are also useful for setting up the goals. Setting precise numerical targets can be an outstanding predictor of how well the development plans are performing.
If you find that you need to grow at certain stages after examining the growth indicators, then you have to pay proper attention to those stages. Things are becoming a bit complicated, and they need to be cleared, isn’t it? That’s why I have prepared a list of 8 business development strategies. These strategies are preferred and applied by many successful entrepreneurs. You can surely get benefitted from them. So, let’s get started.
8 Small Business Growth Strategies to Grow Big
There are thousands of strategies that can play a significant role in the growth of your business. But I have gathered eight revolutionary business growth plans. You may decide which strategy is beneficial for you and what can increase your profit stream at a greater level depending on the current condition of your business.
All of them are going to be useful for your business, but you have to determine the right one because growing a small business isn’t easy. Remember, we talked about some growth indicators; you can take help from them to ensure the correct one. So, take a look at them and decide which one suits your need.
1. Boost the Demand Through Strategic Partnerships
Strategic partnerships are really something that bears the utmost importance for your business growth. It’s like something when a company mentions and praises you in their blog post. Strategic partnerships will express you to a group of a new audience, especially to your partner’s audience. Honestly, you can gather a huge audience from a strategic partnership.
You might have seen this before. Think of any affiliate site that promotes different products; things are quite similar to that. In this case, both sites get benefitted and earn money from sharing their audience.
So, try to find the best strategic partnerships and select the best item for the growth of your business. You can team up with a similar company, and both of you can promote each other’s goods or services. This will also increase your brand exposure and help you increase the total amount of audience.
2. Removing Unprofitable Services and Products
Every business does have some unprofitable services or products. They might have been important from the initial stage, but as time grows, the importance of those product limits. This is the harsh reality of most businesses. They are like a burden to the business growth. you also have such items, you should start removing them.
At first, run an analysis of your income and expenditure on every product or service that your company usually offers. If you find that some products aren’t actually turning into profit and they cost you too much, then you must reconsider them.
Sometimes their production costs stand more than their selling price, and bearing that unusual cost can lead your company to several losses. That’s why it is always better to take proper steps for them. You can either reduce their production costs or stop their production completely.
When you perform an analysis, you will notice some products are severely underperforming. But you need to figure out the worst-performing product from them. Once you figure them out, don’t be afraid to take them off the table. It may be hard to cut some older products that are related to your brand but believe me; you will be benefitted in the long run.
3. Improve Your Conversion Rate
With the improvement of your conversion rate, you can easily boost your revenue and overall income. Your small business may not be prompting entirely in front of the audiences, and you might be getting the sales from the portion of a little portion of those audiences. It’s not the case that happens with your business only.
This little portion of the audience turns into actual sales and generates your daily income. In other words, your overall sales are generated from a certain number of visitors that actually end up buying something even though you get tons of visitors daily. Remember, all of your visitors will not have the mind to make a purchase. So, you should calculate the actual conversion rate of your business. How to do that? Well, simply identify the actual number of visitors that converts into sell and divide them with the total number of visitors who visit your business or likely to be exposed to your business.
It is needless to say that the growth of small business largely depends on the conversion rate. So, it’s crucial for you to improve the conversion rate. Some lead generation tactics can help you out to improve the conversion rate of your business. You can also use some email marketing techniques. Once you identify the visitors who are buying your services and target the visitors who are leaving you without buying anything, then you can send them emails with different offers or by setting up a clear, concise call to action.
4. Creating Sales Funnel
Well, this one is widely used and preferred by many small business owners. A codified sales funnel can help you a lot to increase your business’s overall sales. For this, you have to first identify what is making the customers drop off. That can be a tricky task. Wanna learn a pro tip?
Set a specific guide for your customers. It will lead your customers through a step-by-step process for you before ordering any product or service from your website. This process will help you from where exactly your customers are leaving you. You can then determine the exact location of your customers and implement proper strategies so that your customers won’t leave you again. If you can target those specific areas and improve them for your customer’s betterment, then you’ll be able to prevent them from leaving you.
If you can create a clear and easy-to-understand funnel, your customers will be able to know their current position and from where they are likely to work with your business. With this, you can also reduce the amount of confusion and friction during the sales process. So, make sure to use a clear sales funnel for your business. If needed, you can use some experts’ help for that.
5. Modernize Your Recruiting Tactics
You can also ensure the growth of your business by implementing new recruiting techniques. It will help you to fortify your workforce and select the most capable person for a particular job. If you measure the growth of your business based on the number of your employees, then you should follow this technique without any delay.
Wondering how to grow your business with this approach? Well, there are several creative ways beyond just checking the LinkedIn job description. However, make sure to carry your business card always with you. That’s not all; don’t hesitate to recruit any suitable applicant at any given time. Identify the capabilities and perfectness for the job while recruiting any person.
Remember, it isn’t only for filling the seats and getting tons of people; the applicants are going to play an important role in accomplishing the given tasks. If they aren’t suitable for the job, you may not be able to obtain any benefits through them. That’s why you’re gonna need the right person to work for you who can understand the aspects of your business and help you to reach your goals.
6. Improving Relationship with the Customers
Customer relationship management can create a craze in the market. The positive compliment of your existing client can drive more towards your business and help you earn a good amount of market share. So, if you’re going to use this market share for your small business growth, then you have to make sure to keep your present and future customers happy.
Now, you can ask me how to maintain a good relationship with the customers? There are several techniques for doing that. Some simple greetings, birthday wishes, discount offers can improve the overall relationship with the customers. In this case, you can set up some CRM software to automate the process. This software can store essential data from different users. Even if your customer base increase to the fullest, a CRM software can give you quick access to all required data.
So, if you can acquire one of the perfect CRM software, you’ll be able to ensure a good customer relationship management system and satisfy your customers with top-notch service. By the way, you can also use this software to get some positive feedback. But make sure to seek this feedback from your most loyal customers because a negative impact can make you suffer in the long run.
7. Stay Aware of Your Competition
Every business runs through a hard competition. Yours will also be running from the same and remember your competitors are also trying to reach the top position just as you do. Therefore, you should always stay aware of the progress of your competitors. It’s crucial to find some exact scopes where you can make some changes and win the competition.
Make sure to visit your competitor’s websites most often and do a quick research about their signs of progress. You can check their ad campaigns, social media appearance, landing pages, and much more. Try to find their weak point and make some enhanced plans targeting those weak points. You can also make a successful business plan by acquiring proper knowledge about your competitors. Their failure or loss projects will make you aware of it. You’ll definitely not run that same mistake again, will you?
8. Expanding Your Business Portfolio
There is another way to manage the competition. This is the smartest way, indeed. Instead of planning on your competitors, you can focus on developing your online presence. A significant online presence will help you and make you stand out from others. This also works like a magnet to drive more traffic towards your business.
If you’re losing sales compared to your competitors, you can boost the sale by buying some struggling companies. This will help you to scale faster and increase your online presence through their platform. In simple words, you just spend the money to buy your competitors and change the game completely.
For example, you might have been spending hundreds of thousands of dollars for the improvement of your information base and making the clients learn about your products or services. Instead of that, you can simply invest the money to buy some of your weakest competitors. You’ll easily get them at a fair price and enhance your network area. If you pay proper attention and put a little amount of effort, you might be able to buy a company that already owns this information. This means with a small amount of investment; you can promote your brand and acquire the necessary things to become beneficial in the future.
How to Measure Estimate Growth Accurately
Now that you have got some strategies to grow your business, you have to now learn how to identify if your business is growing or not. So, how you’re gonna measure the growth? Look, if you don’t figure out the growth measurement, you’ll find yourself floating on a rudderless boat. In fact, you won’t even know if your applied strategies are working or not. So, it’s crucial to learn the exact tactics of tracking your business growth.
Remember, we’ve discussed some growth indicators earlier. The KPIs or key performance indicators can help you to evaluate the current condition of your business and how well your business is performing right now. By optimizing your KPIs for your business, you can monitor your success more easily each quarter with consistent measurements.
The KPIs of your business is dependent on some specific goals, and that’s why you should set several KPIs for your business. A bit confusing, right? Okay, let’s have a look at some common KPIs below:
- Monthly Signups
- New accounts created
- Leads generated
- Finalized deals from your sales team
- Number of new customers
- Organic search traffic
- Debt-to-equity ratio
In this case, you determine the progress by your profits and losses. They won’t explain to you the entire story. In order to track your business’s growth, you should track your targets.
It’ll be better if you don’t make any decisions based on any estimated data. If you’ve got someone who has brilliant accounting skills, then this is the right time to use his/her merit for this purpose. You can take his/her help to identify the exact growth and losses. If things are still wrong, you can use some expert’s help. Their reports are going to help you a lot if you’re trying to gather potential investors.
If you can track your company’s KPIs monthly or quarterly, it’ll help you to identify where your company is growing and where you need to pay additional effort. In addition, it’ll also help you to create a consistent reporting structure. There are numerous quantifiable indicators of growth that are needed to be evaluated to determine the actual growth. They may not be directly correlated with your profit or revenue, but they still bear significant importance on your company’s overall growth. These are mainly social medial engagement, search rankings, website traffics, etc.
In some cases, most of the relevant indicators will vary based on the type of business. In this case, no suggestions will work better than your outstanding management tactics. So, take your time and identify which factors are essential for your success and your business’s growth.
Once you establish your KPIs and growth priorities, you can then apply the following indicators for the growth of your business.
- Demand: Figuring out your business demand is very important. If you’re thinking of something innovative for the expansion of your business, then you have to first assess your business demand.
- Profit and Losses: You can simply determine the actual loses and profits by evaluating some crucial financial records. This calculation process may also include income statements, cash flow statements, and balance sheets. So, use these reports and make sure to determine the accurate values.
- Revenue: If your company doesn’t have any earnings or profit in its current situation, revenue can help you to identify your business growth.
- Sales: A sales team works as the backbone of an organization. So, you have to pay proper attention to this sector and align it with your company’s KPI. Your sales team will also allow you to look into the trends and changes so that you can determine the future impact on your revenue.
- Network and Workforce Health: A large part of success is related to the health of your employees and partners. Its importance ranges from hiring patterns to vendor relations and most other aspects of your business. So, you have to ensure a better network and workforce health.
- Market Share: The market share of your business usually depends on the type of your business and its geographical location. But the actual portion of your local market is one of the key indicators that determine how much success your company has gained, including the potential growth.
Why is Business Growth Important for Small Businesses?
All of the companies out there expect business growth. But the type of growth actually depends on the stage where the business is growing now.
Start-up businesses usually need to grow for making their foundation strong. The market is cruel, and if they don’t cement their position properly, they won’t be successful in the long run. But if they can ensure that start-up, businesses will quickly expand their size and generate a large number of revenues for making something bigger.
Start-up companies require a faster pace for growing large, but this pace isn’t needed for mature companies. But they’ll still prefer to follow the right direction and ensure the exact metrics for their business. Remember the increasing amount of profits and bring efficiency to the work process, which is essential for the growth of a business.
Whether you’re having a large or a small business, ensuring a proper strategy for the growth of your business is crucial. I have covered up all the details about business growth, and what you have learned from here, are going to benefit you in the long run. So, get one of the best business growth quotes and make your appearance legendary in the market. If you have got any questions or if you are feeling confused about selecting a proper strategy, don’t hesitate to inform me through the comment section. I’m eagerly waiting to offer you the best solution for your business.