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Five Growth Strategies You May Want To Use For Your Business
Businesses are motivated by growth. Growth means more profits, higher economies of scale and a chance to establish their name as the market leader. A growing business has the option to diversify production and/or sales so that one sector of business may reimburse with its stronger demand of products or services for the sector with failing demand. However, growth requires a solid foundation to be laid for progress. This foundation is built upon a near-perfect system and efficient processes, carefully thought-out funding plan, prepped employees and a satisfying customer relationship management. Along with this foundation, here are 5 strategies to fast forward business growth.
Market Penetration
Create a competitive edge by selling your current products to your existing market. Innovation is most valued, but in an unconfirmed marketplace, the best way to grow your business is to go for upselling. You can hold on to your current customers by persuading them to buy more of your products. This upselling can be done by adding more sales representatives. They can also get across new customers, expanding your clientele, dedicate more effort on advertising and allot greater budget.
Market Development
Reach a new market segment for your current products. This can be done geographically, i.e. within your country. Build a website to connect new customers who, previously, were unable to reach your products. You can also export to another country, keeping in mind the differences between foreign and home markets. This strategy also involves industry-related adaptation. For example, changing the products according to customer needs or bringing a change in the packaging style. Overall, a thorough understanding of the marketplace is beneficial.
Product Development
The most convenient strategy for entrepreneurs is to sell new products to existing customer as well as new ones, but it also runs the risk of upfront investment. Entrepreneurs are usually inclined to sell to current customers and avoid risk of learning about new products and markets at the same time. Hence, they often opt for new product development or developing the product for a new market. Whichever strategy is chosen, it requires new skills and continuous hard work, resulting in faster growth for business.
Business Co-operation
In a strategic partnership, an agreement is formed with one or more companies on similar growth pathways, working together yet running as separate businesses. Here, a mutually beneficial relationship is cultivated where companies can take advantage of their partner’s complementary strengths, while still be in full control of their own business. When done correctly, this strategy allows you to increase value to your customers and increase market share. But when done poorly, it destroys a business.
Other than strategic partnership, companies can also get involved in joint ventures where two or more companies create an entirely new business entity, with shared risks and costs.
Rapid growth can also be achieved through acquisitions, where a company ends up gaining full control over another company. With synergy, growth becomes quicker, cheaper and far less risky. In acquisition, along with easy financing and economies of scale, you can enjoy the advantage of instant market penetration.
Use Coupons
Coupons create excitement with catchy copywriting and urgency with expiration dates. Couponing is a powerful business building tool because it helps with brand recognition and direct traffic to retail locations. You can use sites like Piucodicisconto and Retailmenot.com to promote your products and even reach new customers. Big businesses like Uber and Dropbox use digital coupons as it has proven to be successful in today’s marketplace. As opposed to popular belief, couponing is also a popular activity among the high-income households. Couponing can contribute to growth if you make it shareable and make your customers feel like a part of social marketing strategy. Incorporate offers and make it feel personal to engage your customers. Use social media sites like Facebook, Instagram, and Twitter to motivate shoppers to use your coupons.
Boost your business using these 5 strategies. You can always come up with your own strategies as you gain more experience.
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