Did you know that less than 50% of startups thrive after five years of establishment? Why do you think that’s the case? The most likely explanation for this is that they don’t employ the right growth strategies.
These growth strategies can help businesses enhance their weaker areas and succeed in a competitive landscape.
So, what are growth strategies, and which are the most effective strategies that every business owner should know about? Read on to learn more below.
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Growth strategies are significant for every business. They ensure that you are not a part of the 20% of companies that fail within the first year of operation.
These growth strategies involve a plan to help your business develop and expand. Also, they can involve things like how you can effectively;
There are several types of growth strategies that every business owner should know about. These strategies include the following;
This strategy is a company’s plan to raise its revenue over a specific period. It can be monthly/yearly. Businesses that focus on revenue growth mainly do the following;
Also, they employ the following strategies that you can use to ensure revenue growth;
Market penetration is one of the most essential strategies that you should know about. It involves tactics that can help you expand your market share by maximizing your sales of your current products/services.
This strategy will ensure you capture more of the market through aggressive sales and marketing tactics. It may include doing the following;
You can calculate your market penetration through the market penetration rate. This is calculated by dividing the number of customers you receive by your target market size, then *100.
Market diversification is one of the best strategies that you can use for business growth. Why?
Because relying on one customer segment/service/product can make your business vulnerable to;
When you choose to diversify, you minimize your investment risks. Also, you open your business to new revenue streams.
Market diversification provides an excellent way to expand your customer base, which in turn ensures you have increased sales. It can include doing things like introducing new products or entering new markets.
This strategy is very effective if you anticipate a downturn or slowdown in your primary market.
A customer growth strategy is a plan where businesses pursue new customer acquisitions over a specific time period.
Any company that uses this strategy is often open to making significant investments as long as there is an opportunity for high customer acquisitions.
Some of the customer growth tactics that you can use for your business include the following;
Forming strategic partnerships is a powerful strategy that you can use.
These strategic partnerships can offer you access to new resources/technologies/markets that would have otherwise been difficult to get independently.
Some of the strategic alliances that you should focus on as a business owner include the following;
This is another effective strategy for your business growth. Its goal is to launch new services/products in existing markets. When you use this strategy, you will most likely;
Some of the best tactics that will ensure the success of this strategy include;
This strategy differs from the above customer growth strategy. How?
Its main goal is to protect the current customer base to ensure sustainable business growth takes place. Customer retention strategies aim to create loyal customers and build long-term relationships.
You can employ this strategy by;
Loyal and happy customers can become brand advocates. It means that they can help you promote your business to their contacts.
Digital transformation is a vital strategy that every business owner should embrace in this digital age. It involves the process of leveraging digital platforms and tools to;
This strategy involves entering international markets.
If done correctly, you can increase your business’s ability while reducing risk. International market expansion can enable you to enjoy international business incentives.
For example, India reduced its corporate tax from 30% to 20%. This reduced tax can be highly beneficial as it will reduce your operation expenses in the international field.
Other benefits of this strategy include the following;
A competitive pricing strategy ensures that you stay competitive/attract new customers.
This strategy can help you stimulate demand and capture a new market share. It involves striking the right balance between affordability and profitability.
The best way to implement this strategy is to do the following;
Then, adjust your pricing accordingly.
Investing in employee development facilitates organizational and individual growth. This strategy will help you to empower your employees, who in turn contribute to business growth by ensuring they;
Some of the best ways to employ this strategy are through;
An effective method to boost employee growth and organizational efficiency is by crafting a clear company org chart.
This enhances understanding of internal structure and relationships, fostering communication and collaboration.
We suggest using an online organizational chart maker for easy customization and visual appeal.
Continuous innovation is the key for businesses to stay competitive and grow.
This strategy involves embracing change, encouraging new ideas, and fostering a culture of creativity. Innovation can take different forms, including;
The best result of this strategy is that businesses can differentiate themselves and have a competitive edge by;
Customer feedback and insights are invaluable when it comes to business growth. It is because these insights let you know about your customers’ pain points and preferences.
Thus, in this strategy, businesses implement mechanisms for;
But how do you go about getting customer insights and feedback? You can do this by using;
The ultimate goal of customer feedback and insight strategy is to enhance customer experience.
This strategy provides one of the most straightforward paths that can lead to business success and growth. However, it is only perfect for businesses with a substantial debt capacity and cash flow.
The acquisition growth strategy will provide you with several benefits, including the following;
Efficient growth strategies are essential in ensuring your business attains long-term success and sustainable growth.
Thus, using the above strategies can help you achieve new heights of growth and success.