Wednesday, March 7, 2012
How To Develop a Business Growth Strategy
If you need to ensure that your small business develops into a much larger one, then you should be considering how to develop your business. A business advisory can help you to improve your business, and particularly, show you how to develop a business growth strategy which will help your company to flourish.
There are several different types of business growth strategy and each has different pros and cons. For smaller businesses where the managers have invested most of their own income into the company, it is a good idea to have a low-risk strategy. However, these are also slow-growth plans which take several years to come to fruition. The faster but more risky strategy is growth through acquisition which involves buying out competitors and even moving into different fields. A business adviser will usually encourage small businesses to start out slowly and only start on the more risky strategies once their business is completely settled.
At the beginning you need Intensive growth plans. The first and least risky is seen with market penetration. Market penetration focuses upon the customer, encouraging them to purchase more of the product. If you have previously only sold your products in a small area you can branch out into the neighboring suburbs. Your business adviser will be able to help you improve your marketing, allowing you to reach these new customers. Another plan involves using alternative channels, such as selling your product through the internet. Again, you will have to improve marketing methods in order to reach your new clients.
The next two strategies can be combined together, if you choose. Product Development and Selling to New Customers will all help you to improve your retail penetration. If you have a steady stream of clients, product development will help you to bring in more sales. If you want to bring in new customers then creating a new product might trigger more interest in your business. All of these lower-risk strategies involve you working to improve marketing campaigns and pushing your product harder.
After you have completed all the steps in the intensive growth plan, you might consider moving into Integrative growth. This is acquisition time and is a serious step. Your business adviser might be able to help you here by looking at the different steps you can take to grow in this manner. Firstly, you might choose to buy a business which is working in the same field as you. Buying competitors helps to eliminate barriers to growth and can also increase company growth through the addition of new products. Buying your suppliers can also help you to grow through better product supply and less cost. You could also buy companies which produce parts needed for your product, which in some way is a step to the side and could lead to investment in new fields.
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