7 Business Growth Strategies for Small Businesses | Cleverism (2023)

Take a look at some of the largest businesses today, and you are likely to be blown away by the numbers they boast in terms of capitalization, revenue and profitability. Walmart, the world’s largest retailer according to Forbes, reported USD 482.13 billion in revenue and USD 14.7 billion net income as of February 2016.

There is Subway, the fastest growing franchise in the world with close to 45,000 restaurants as of September 2016, making it the largest single-brand restaurant chain and the largest restaurant operator in the world. British company The Body Shop currently operates franchises in close to 3,000 locations worldwide, and remains to be one of the most recognizable brands in specialty skin care, even after its acquisition by L’Oreal in 2006.

Very impressive, aren’t they? These are the companies that are making the big bucks and controlling pretty much a large portion of the market. They wield so much influence and power, it is hard to picture them being less than the business behemoths that they are today.

7 Business Growth Strategies for Small Businesses | Cleverism (1)

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Sam Walton started Walmart in 1945 by purchasing a modest Ben Franklin store where he sold products that he purchased at a low cost from suppliers, and subsequently resold to customers at low prices. It was in 1965 when Fred DeLuca obtained a $1,000 loan from a friend and opened “Pete’s Super Submarines”, which later became known worldwide as “Subway”. The Body Shop founder Anita Roddick opened her first “The Body Shop” store by getting a $6,800 bank loan in 1977, and she started selling skincare products that she and her daughters made at home, using unique and healthy ingredients.

This is their reality: most of these big businesses started out small in the past. They weren’t always the juggernauts that they are at present. At one point, they also belonged to that relatively obscure but promising group referred to as “small businesses”. Unfortunately, it is also a reality that only a handful of an entire slew of small businesses will actually grow to join the ranks of Walmart, Subway and The Body Shop.

What eventually made them break out of that group and charge ahead of their contemporaries?

The likeliest answer, aside from determination and good business practices, is the application of business growth strategies.

Small businesses have several options to choose from, depending on various factors and circumstances. We will look into seven of the growth strategies that are applicable to small businesses hoping to expand their operations and occupy a larger share of the market.

MARKET PENETRATION

Market penetration is probably the first – almost default – option of small businesses hoping to grow and expand their operations. This works best in a scenario where there are no new products, and there are no new markets to enter. Left with no choice, the small business will then look at what it currently has, right where it currently is. That means the focus will be on the current products or services, in the current market.

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It is pretty straightforward: the small business will market its existing products or services in the same market it is in, with the aim of increasing its market share.

This is a competitive way of doing things, because the small business will be facing its competitors head on, implementing various strategies in order to increase its market share. Some of the market penetration strategies employed by small businesses are:

  • Reducing the selling prices of the products or services, with the intention of attracting consumers with the lower price. This works best in a market with very little differentiation. Walton effectively used this strategy when it set up its first Walmart store. There were other retail stores at the time, but what made his market share go up is because he was able to offer the products at lower retail prices than the other retailers.
  • Increasing promotions for products or services to improve their pull strategy. Aside from both conventional and non-conventional forms of advertising, small businesses can also employ other means to attract customers. Examples are special offers, special promotional events, offering trade and sales discounts, rebates and similar schemes. Not only will this appeal to your current customers, it will also catch the attention of the users in the market that were initially unaware of your product, brand or company.
  • Expanding distribution channels to widen your reach. Usually, this is done by looking for more distributors, retailers and dealers, making the distribution channel wider. Small businesses should also consider entering into partnerships with these major channel players, and nurturing the relationship so they will want to continue working with you. A wider and more stable distribution channel means greater chances of reaching your customers, and staking a claim on a bigger market share.
  • Effecting improvements on the product. You can encourage more people to buy your product if you are able to improve on its existing features, or find alternative uses for it. However, in many cases, there is usually no need to actually do any changes to the product. A change in packaging and an assertion in advertising about the “new and improved” product is often enough to attract the attention of customers.
  • Zeroing in on the competition’s customers and distribution channels. Naturally, if small businesses can win over the customers of their competitors to their side, they will gain a larger market share, and make their rival’s smaller. It’s striking two birds with one stone. In this strategy, the efforts are focused specifically on the customers of the competitors. But it also extends to the dealers, retailers and distributors currently working with the competitor. If you can offer them a deal better than what they are currently getting from their partnership with the competitor, they may consider jumping ship.

It is important to note that, in market penetration, the size of the target market is fixed or unchanged. This is markedly different when the strategy used is Market Development.

MARKET DEVELOPMENT

Growth can be achieved even without a change in the size of the market, and that is demonstrated by the Market Penetration strategy. However, businesses can also grow when they seek to expand their market, and that is Market Development.

Market development, also referred to as “market expansion”, is another popular growth strategy that is applicable to small businesses, especially those that are having problems finding solid footing in the current market they are in. Faced with too many and too stiff competition, small businesses will be hard-pressed to look elsewhere for “greener pastures”.

There is also the possibility that a product reassessment reveals new usage for the product, which will take it beyond the current market. For example, a product initially developed for health and wellness purposes is discovered to be effective as a skin care product as well. This means that the producer of the product will no longer be limited to the health-conscious market, but it can also branch out into a new market, which is for beauty products.

In this scenario, there is no new product, but there is a new market, and it in this new market that the business will be able to gain more market share, more sales, and definitely more profits. The potential market is expanded either through identification of new users or new uses for the product.

This is often seen in how businesses undertake expansion to new geographical markets, such as other states, regions, countries or continents. Possibly, the most recognizable practice of this growth strategy is by adopting the franchise model, which was how Walmart, Subway and The Body Shop grew. The Body Shop, which was originally a UK brand, was able to enter other markets in more than 60 countries all over the world.

Small businesses have to be careful when using this as a growth strategy, however. Since this involves entry to an entirely new market, market research must be conducted properly, and the business should gain more than adequate understanding of the new market and the customer base within it. What worked in the current market may not have the same results in the other market due to inherent differences in culture and other factors.

USE ALTERNATIVE CHANNELS

The internet has opened up other channels for businesses to reach their customers and sell their products. In fact, this has been greatly beneficial for small businesses and entrepreneurs, since they were provided a platform where they can have a chance of competing against more established brands.

Today, small businesses have the option to find their customers and sell their products to them through the following:

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  • Selling online. Businesses can set up their own websites where they can sell directly to customers, or partner with retail websites that will serves as their online storefronts. Many businesses sell their products through sites such as eBay, Amazon, and Etsy, to name a few.
  • Selling through subscription programs. Small businesses formulate subscription and membership programs to find their customers and introduce their product to them.
  • Selling through the use of mobile apps. Mobile internet is also becoming a greatly accepted mode of transacting nowadays, and more and more businesses are looking for ways to integrate this in their marketing and growth strategies.

PRODUCTEXPANSION

Product development, or product expansion, means exactly what the phrase implies. There is no new market, but there is a new product, and that new product will be introduced to the existing market to gain a bigger market share.

This is a strategy adopted in industries with fast-paced technological developments. The electronics or mobile industry is one. Manufacturers of mobile phones are prolific in churning out new and updated models of their products to the market in order to keep up with the changes and improvements in technology. Small businesses also see this strategy as a viable one in most of their circumstances.

What small businesses can do when using the product expansion growth strategy are:

  • Expanding product line by developing and introducing new products
  • Adding new features to existing products
  • Updating features of products when the old ones become obsolete

In order to successfully implement this strategy, the small business must be capable of quick response to market changes that call for changes in the product. This will not work if the business is unable to think up of solutions fast because, by the time they are able to come up with a solution to cope with a change in the market, another change would have already cropped up.

DIVERSIFICATION

Small businesses also use diversification, where they will sell new products to new markets.

This is a high risk, high return strategy, since it is basically akin to starting from scratch, as if the small business is starting anew. As a matter of fact, this poses the highest risk for businesses, big or small. This risk arises from the fact that diversification will require substantial investment of resources: time, money, manpower and other assets. After all, it involves going through the motions of starting a new business, in the sense that it has to conduct marketing research in that new market, with respect to the new product.

In the context of growth strategies, there are two types of diversification.

1. Conglomerate diversification

When the small business suffers from limited opportunities in its current line of business or product line, it may choose to diversify into areas that are not related, or are so far removed, from its current operations. For example, a manufacturer of children’s apparel may not be satisfied with the current results of operations. Therefore, it decided to diversify by acquiring a small catering business. These two are completely unrelated, but the diversification is able to increase the profitability of the company and, consequently, its growth rate.

2. Concentric diversification

This time, the small business diversifies by adding products related to its current products, or adding markets related to its current market. Since there is a certain degree of parallelism, this strategy is more synergistic than conglomerate diversification. Picking up from the previous example, the manufacturer of children’s apparel can use concentric diversification if it buys into another company that formulates healthy food for children aged 8 years and below. These have related markets, with parents and children as the target customer. If, instead of children’s food, the company goes into manufacture of footwear for children, then this is concentric diversification using related products.

Many identify diversification mostly as a marketing strategy, but from the point of view of management, it is a very effective business growth strategy when done right, despite the high risk involved.

ACQUISITIONS (AND MERGERS)

, or “mergers and acquisitions”, deals with the purchase of one company by another, and/or the consolidation, combination or joining of two companies. The role it plays in corporate restructuring puts it high on the list of growth strategies for businesses.

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Acquisition is primarily considered as a big-business growth strategy, since it is the big businesses that have the resources to acquire other companies. Generally, small businesses are seen to have a difficult time making acquisitions, considering the large amount that will be required to cover the purchase price. Even if the small business is able to raise the amount and cover the purchase price, the risk that it will eventually turn out to be a bad purchase decision is much too big for a small business to handle.

However, it would be wrong to completely rule out acquisition as a growth strategy just because you are a small company. If the acquisition turns out to be a very good decision, then you can profit greatly from it.

How can a business achieve growth through acquisitions? Let us count the ways.

  • Acquisition helps the small business in securing a larger market share and more revenue.
  • Acquisition enables a small business to establish a dominant position in the market, made possible by market consolidation.
  • Acquisition empowers smaller companies to break geographical and even political boundaries, and bring their operations to the world.

The strategy of achieving growth through acquisitions and mergers is definitely not for everyone or, more precisely, not for all small businesses. Indeed, it is the cash-rich small businesses, or those with “extra” unutilized resources that are likely to use this growth strategy.

Small businesses may choose to exercise any of the three acquisition categories:

  • Upstream acquisition: A small business will seek to have a merger with a bigger company in the same industry or field, and they will operate or function as one entity. The goal of this type of merger is to consolidate the market forces of the two companies and secure their employees. It is also seen as an excellent way to ensure higher investments. In a report by the Boston Consulting Group on acquisitive companies, they might not have recorded spectacular profits, but the acquisitions created value, and this was favorably looked at by investors, resulting to higher investments as well as shareholder dividends.
  • Downstream acquisition: This applies if the small business acquires another business, usually in a straightforward purchase transaction of the smaller business or of its ownership shares. The acquisition will result in the acquiring company being the surviving company, and the one in control of the smaller business, which will now lose its identity once assimilated into the acquiring company. The goal of this acquisition type is the expansion of the business and its operations. The key here is to choose your acquisitions wisely. Prudence and common sense dictate that you should buy only the companies that you can afford.
  • Lateral acquisition: This acquisition type can be seen between two businesses of roughly the same size joining together for the purpose of consolidating or pooling their resources. This will result in an entirely new business entity that is considerably bigger than either of them when they were still operating separately.

MARKET SEGMENTATION

This is another big business growth strategy that may also be adapted by small businesses, especially those that find themselves in an industry and market dominated by larger companies.

Small businesses are bound to have a hard time going up against the big boys, even when they are on the same playing field. So how can the small business hope to grow? Why, by taking a look at that playing field and identify the corners where they can stake their claim. That will be their segment, and that is where they will focus all their business efforts and growth strategies.

In market segmentation, the small business would have to undergo the process of dividing the market into segments, with each segment characterized by distinct groups of customers with their own needs and preferences. Once the pie has been divvied up, it is time to identify which slice of the pie seems to be the most receptive to the strategies of the business.

Segmentation is performed using the usual bases that were utilized by the business when drawing up its marketing plan: demography, geography, market and customer behavior, and even the psychographic profiles of the market.

The major stumbling block that small businesses often encounter when applying market segmentation as a growth strategy is in conducting the necessary market research for segmentation purposes. These researches can be very costly, and should not be a problem for big businesses. Small businesses, however, do not have the same luxury.

Therefore, instead of investing in an expensive market research, small businesses can be more creative when it comes to gathering data for market segmentation. These sources came highly recommended:

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  • Informal cluster analysis conducted by the business
  • Studying marketing programs of competitors
  • Conducting informal research with targeted respondents/customers
  • Communicating with key industry players, such as buyers, distributors and analysts
  • Secondary researches and data resources
  • Data from basic research publications
  • Data from trade and association publications
  • Data from industrial experts and authorities
  • Data from independent and external measurement service providers and agencies

Once the segments have been identified, the small business should now look into each segment and find any unsatisfied wants or needs. It will then find ways to fill that gap that is not met by the competitors.

LEVERAGING PARTNERSHIPS

Have you heard of the Renault-Nissan Alliance, which was forged to increase economies of scale for both brands? This strategic partnership between France’s Renault and Japan’s Nissan had substantial terms and conditions. One of them involves how Nissan generated increased sales in its units sold in Europe, which were manufactured with engines built by Renault.

This is a prime example of how these big companies were able to leverage partnerships as a growth strategy.

In the more modest setting where the small business exists, leveraging partnerships is also a viable growth strategy. We have made mention earlier of how small businesses can enter into partnerships with its distributors and dealers. They can actually look further, into other partnership prospects.

If you are in the manufacturing business, consider entering into a partnership with the supplier of the raw materials you are using. If you have an excellent technology but you do not have a warehouse, look for someone with warehousing capabilities to share but are also in need of the benefits that your technology can provide.

Briefly, some of the possible strategic alliances that businesses can leverage for growth include:

  • Shared distribution. Two businesses acts as distributors or dealers of the other in their respective markets.
  • Technology transfer. Two businesses collaborate in development of new technologies.
  • Cross-manufacturing. Two businesses make use of the same manufacturing line for their processes. An example is how Ford and Mazda use the same manufacturing and assembly line in their automobile manufacturing operations.

Small business can benefit greatly from these partnerships. Aside from the stability of knowing that there are parties or entities that will have your back, the partnership may also help you cut down on costs, increase efficiencies and, ultimately, help your business grow.

Of course, small businesses are not going to have it easy, unlike the big businesses who have more than enough resources to be able to pay for these partnerships immediately. Since small businesses are usually not as equipped, they’d have to rely on their negotiation skills to convince other companies to partner with them.

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FAQs

What strategy should be better for small business growth? ›

Building more market share, also known as market penetration, is one of the best business growth strategies for small businesses. Basically, the goal is to sell more of your existing products or to successfully promote a new product. There are many ways to accomplish this goal.

What strategies are being used by small businesses? ›

Here are six elements of business strategy for small business.
  • Passion. ...
  • Invest time away from your business. ...
  • Hire and fire guided by your purpose, values, and mission. ...
  • Invest in your marketing. ...
  • Boost your email marketing. ...
  • Focus on current customers.
20 Sept 2022

How do I write a business growth plan? ›

Creating a Growth-Centric Business Plan
  1. Define Your Solution. ...
  2. Pinpoint Your Market(s) and Customer(s) ...
  3. Determine Your Value Proposition. ...
  4. Establish Your Goals and Objectives. ...
  5. Map Your Operations. ...
  6. Create a Clear Marketing Strategy. ...
  7. Outline Your Financials and Forecasting.

What is a growth strategy example? ›

Strategic growth involves developing initiatives that will help your business grow long term. An example of strategic growth could be coming up with a new product or developing a market strategy to target a new audience.

What is the main purpose of a small business strategy? ›

A business strategy is intended to help you reach your business objectives. With a vision for the direction of the business, you can create clear instructions in the business strategy for what needs to be done and who is responsible for completing each step.

Why is strategy important for small businesses? ›

In the absence of a well-defined and well-developed strategy, your small business is doomed. An important aspect of your small business strategy is the marketing plan you adopt to attract potential customers. Without a well-defined marketing plan, you will lose many potential customers.

What are 5 strategies used by entrepreneurs to succeed in their small businesses? ›

Here are nine strategies every entrepreneur can use right away to become more successful at small business management.
  • Make strategic planning a top priority. ...
  • Keep a close eye on your competitors. ...
  • Work to broaden your client base. ...
  • Stay close to your customers. ...
  • Monitor profit margins. ...
  • Develop a cash-flow planner.

How can a business grow from small to big? ›

Like any element of running a business, there are multiple growth strategies that you can try.
  1. Recapture Existing Customers.
  2. Ask for Referrals.
  3. Contain Your Costs.
  4. Extend Your Market Reach.
  5. Participate in Trade Shows.
  6. Conquer a Niche Market.
  7. Diversify Your Products or Services.
  8. Develop Franchising Opportunities.
5 Oct 2020

What are the 10 business strategy examples? ›

10 Examples of effective business strategies
  • Technological advantage. ...
  • Improve customer retention. ...
  • Improve customer service. ...
  • Cross-selling products. ...
  • Increase sales from new products. ...
  • Innovation and pushing boundaries. ...
  • Product diversity. ...
  • Price point strategising.
8 Feb 2022

What are the 7 types of business plan? ›

Types of business plans include, but are not limited to, start-up, internal, strategic, feasibility, operations and growth plans.
  • Start-Up Business Plans. ...
  • Internal Business Plans. ...
  • Strategic Business Plans. ...
  • Feasibility Business Plans. ...
  • Operations Business Plans. ...
  • Growth Business Plans.

What are the 8 ways to grow your business? ›

8 ways to grow your business
  • Get to know your customers. ...
  • Offer excellent customer service. ...
  • Nurture existing customers and look for new opportunities. ...
  • Use social media. ...
  • Attend networking events. ...
  • Host events. ...
  • Give back to your community. ...
  • Measure what works and refine your approach as you go.

What are the 7 steps of a business plan? ›

How to make a business plan and seven components every plan needs
  • Executive summary. ...
  • Company description. ...
  • Market analysis and opportunity. ...
  • Competitive analysis. ...
  • Execution plan: operations, development, management. ...
  • Marketing plan. ...
  • Financial history and projections.
23 Nov 2020

What makes a good growth strategy? ›

Appeal to Existing and Potential Customers/Clients

A good business growth strategy will always take into account the needs and wants of your current and potential customers/clients. Your business growth strategies should reflect their needs and desires, and be tailored to meet their expectations.

What are the strategies to make a business successful? ›

  • Get Organized. To achieve business success you need to be organized. ...
  • Keep Detailed Records. All successful businesses keep detailed records. ...
  • Analyze Your Competition. Competition breeds the best results. ...
  • Understand the Risks and Rewards. ...
  • Be Creative. ...
  • Stay Focused. ...
  • Prepare to Make Sacrifices. ...
  • Provide Great Service.

Why growth strategy is important? ›

Growth strategies are important because they keep your company working towards goals that go beyond what's happening in the market today. They keep both leaders and employees focused and aligned, and they compel you to think long-term.

What is the most important part of a small business? ›

Sales and marketing: Sales are the lifeblood of small businesses, so every business will need to generate sales and build relationships. In a smaller company, this will often also include marketing and account management.

Do small businesses need a strategy? ›

An effective business strategy is crucial for every small business. The right strategy will ensure that a business is able to make the most of its resources, and it will also ensure that the business is fully prepared for the future.

Do small businesses need a strategic plan? ›

Many small business owners may believe that strategic plans are only for billion-dollar corporations. But if you aspire to become one of the big guys, you need a strategic plan with actionable steps that not only spells out where you want to go but also outlines how to figure out whether you're on the right track.

How do you write a business strategy? ›

A business strategy starts with an understanding of what your company does and why. This will help you write your mission and vision, which is a summary of your purpose and proposed future direction. Think about why you started the business, who you serve, what you offer, and the value you add to your customers.

What is business strategy with example? ›

Examples of business strategy

A business strategy is a plan that outlines how a company will achieve its goals. There are many different business strategies, but some common examples include cost leadership, differentiation, and focus.

What are the 7 P's in entrepreneurship? ›

Opinions expressed by Entrepreneur contributors are their own. Once you've developed your marketing strategy, there is a "Seven P Formula" you should use to continually evaluate and reevaluate your business activities. These seven are: product, price, promotion, place, packaging, positioning and people.

What are the 7 keys in entrepreneurship? ›

7 Keys to a Successful Entrepreneurship
  • Get Educated. ...
  • Know Your Market. ...
  • Have A Financing Plan. ...
  • Communicate Well. ...
  • Focus On Sales. ...
  • Stay Flexible. ...
  • Manage Stress.
6 Apr 2018

What are the 6 simplest and most effective way before you start a business? ›

The key to a successful small business, especially in the startup phase, is to keep things simple and costs low.
...
Write a one-page business plan.
  • Define your vision. ...
  • Define your mission. ...
  • Define your objectives. ...
  • Outline your basic strategies. ...
  • Write a simple action plan.
19 Feb 2019

How can I grow my business fast? ›

Here are 10 ways to scale your business rapidly:
  1. Mindset. The word 'mindset' gets tossed around a lot, and it's easy to brush it off as a non-essential requirement to grow a business. ...
  2. Benchmark. ...
  3. Strategy. ...
  4. Systems. ...
  5. Structure. ...
  6. Delegate. ...
  7. Motivate. ...
  8. Collaborate.

How do small businesses help economic growth? ›

Not only do small businesses provide more jobs, they also bring careers and opportunities. Successful small businesses put money back into their local community through paychecks and taxes, which can support the creation of new small businesses and improve local public services.

What are the three basic small business strategies? ›

According to Porter's Generic Strategies model, there are three basic strategic options available to organizations for gaining competitive advantage. These are: Cost Leadership, Differentiation and Focus.

What are the 4 types of business strategies? ›

What are the Types of Business Strategy?
  • Organizational (Corporate) Strategy.
  • Business (Competitive) Strategy.
  • Functional Strategy.
  • Operating Strategy.
7 Apr 2022

What are the 7 Elements of a business plan PDF? ›

The 7 Elements of a Successful Business Plan (Template Available!)
  • Executive Summary. The executive summary describes the overall mission of your business. ...
  • Business History, Background and Objectives. ...
  • Products and Services. ...
  • Marketing Planning. ...
  • Competition. ...
  • Operational Plan. ...
  • Financial Planning.
20 Jan 2020

What is the 7 marketing? ›

The 7 Ps of Marketing

These seven are: product, price, promotion, place, packaging, positioning and people. As products, markets, customers and needs change rapidly, you must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.

What are the 10 ways to improve business practices? ›

10 THINGS YOU CAN DO TO IMPROVE YOUR BUSINESS RIGHT NOW
  1. Identify your critical success factors. ...
  2. Keep score. ...
  3. Learn from the best. ...
  4. Create the future. ...
  5. Involve your people. ...
  6. Set goals. ...
  7. Make a plan.
  8. Develop systems.

What are the 13 tips for successful business? ›

13 Ways to Improve the Success of Your Small Business
  • Create brand personality. ...
  • Develop a strategic business plan, organizational structure, and operational support systems. ...
  • Avoid common mistakes. ...
  • Become connected to the community. ...
  • Put your employees first. ...
  • Don't just acquire customers, retain them. ...
  • Get organized.
2 Dec 2019

What are the 6 key success factors business? ›

  • A Plan. Having a plan is the first necessity for success. ...
  • Perseverance. ...
  • Understanding that success or failure is not permanent. ...
  • Shared belief and a team spirit. ...
  • Motivation. ...
  • Clear vision of what success is. ...
  • Maximise resources available. ...
  • Clear understanding of time, money and resources.
8 Feb 2016

What are the seven 7 factor to consider in starting business? ›

Well, there are some important factors to bear in mind when launching a business.
  • A great idea. “No business can develop in the absence of a great idea. ...
  • Funding and budget. ...
  • What is your business plan? ...
  • Legal documentation. ...
  • Passion. ...
  • Find the right equipment. ...
  • Know when you need help.

What is Chapter 7 in business plan? ›

This stage is where the business plan writer puts the finishing touches on the plan to prepare it for use.

Which growth strategy is the easiest? ›

Market Penetration

This is the lowest risk and potentially easiest growth strategy. It involves growing the sales of your existing product in your existing market.

What is the biggest key to success for a small business? ›

Provide a Great Product or Service

The products or services provided need to be good enough to meet or surpass the clients' expectations once the customers are there. This is how you create a life-long repeat customer who will, in return, help the business by generating word of mouth.

What are the 4 growth strategies? ›

The four growth strategies

These are Product, Placement, Promotion and Price. Where the Four Ps focus on audiences, channels & pricing, the Ansoff Matrix is more effective for a broader view of markets and uses the older Four P framework within each of the 4 Ansoff quadrants.

What is the most effective business strategy? ›

The most effective type of business strategy consistently is changing and optimizing the strategy to reach more consumers. Identifying the needs of new generations of consumers can help your strategy show greater results by the ability to adjust.

What are the strategies to improve business? ›

Set clear goals

specific – state clearly what you want to achieve. measurable – make sure you can evaluate success. achievable – check your objective is something you have the time and resources to meet. relevant – make sure your objectives improve profit drivers and improve some part of your business.

What are the 7 elements of strategy? ›

Here are the 7 basic elements of a strategic plan: vision, mission, SWOT analysis, core values, goals, objectives, and action plans.

What is a good growth strategy? ›

Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition.

What is the most important part of business strategy? ›

1. Vision, mission and values. Having and sharing a collective mission and vision is an essential part of any successful business strategy. Organizations that communicate their purpose tend to perform better than those that don't.

How can you say that your strategy is effective? ›

A strategy is effective if it uses the resources you allocate according to your plan and delivers the expected results. You have to continually evaluate use of resources and performance to check if your strategy is hitting your targets.

How do I take my small business to the next level? ›

Keep up with changing technology that may affect your business or help you be more productive.
  1. Use Goal-Setting to Push Boundaries. ...
  2. Focus on Customers. ...
  3. Commit to Continuous Learning. ...
  4. Learn How To Delegate. ...
  5. Increase Your Productivity. ...
  6. Stay Current With Technology. ...
  7. Change up Your Marketing Activities.
16 Aug 2022

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Introduction: My name is Kerri Lueilwitz, I am a courageous, gentle, quaint, thankful, outstanding, brave, vast person who loves writing and wants to share my knowledge and understanding with you.