Business Growth: Developing your Growth Strategy to Reach New Heights
Developing your Business Growth Strategy to Reach New Heights
Optimism about 2018 is running high among small businesses with revenues expected to increase +9.1%, compared to last year’s gains of +8.7%. And most small-to-mid-size businesses – 90 percent — anticipate seeing growth this year, up 10-points compared to a year ago. Finding ways to grow in uncertain times can be tough, but author, entrepreneur and former Inc. 500 CEO Keith McFarland outlines several business growth strategies in his book The Breakthrough Company.
Intensive Growth Strategies
An effective strategy is one producing the biggest returns with relatively low risk and investment. McFarland uses a ladder analogy to explain the following ideas. Growth strategies on lower rungs deliver results with lower risk. Every step up the ladder brings business growth but with a larger risk.
Increasing Market Penetration
With this lowest-risk strategy, you either sell more products to your existing customers or develop new options for use, generating repeat purchasing.
A tactic like franchising enables you to sell in a new market.
Exploring New Channels
Getting distribution in upscale or value channels, or expanding your online presence gives customers opportunities to purchase in more ways.
Creating New Products
This business growth strategy – developing new products for existing and new customers – requires more investment (and risk) to deliver revenues.
Pivoting to Meet Evolving Needs
Auto manufacturers and software companies continue to adapt to market conditions, changing offerings to meet needs of new customers.
Integrative Growth Strategies
Acquisitions, or integrative growth strategies are also a path for business growth.
Acquiring a competitor delivers fast growth while removing a competitive threat.
You can increase speed to market by purchasing one of your suppliers.
You can reduce costs of reaching your customers by buying part of your distribution network.
Whatever strategy you choose needs to be agile and flexible, so you can respond to market and customer changes.
Our team at Smart Capital Lending can help you get capital for business growth. We’ll find the commercial financial solutions you need to reach new heights.