1. Open multiple locations
If yours is a retail
business, outline in your business plan where you can open more showrooms and
what your geographic strategy will be. Don’t just open new shops randomly
because you think your product is successful at one location.
2. Reach new clients
Granted, you have your
target customers. But after reaching those customers, should you stay put? No.
You should start looking for other customers who may as well be interested in
your products or services. For example, if you are offering
business-to-consumer products or services, consider business-to-business
offers, too. This way, you will reach new clients and still retain old ones.
3. Introduce new products
Introducing
new products is an obvious way to boost sales and grow your business. (But this strategy is often poorly implemented). Look at
ways by which you can bring new products to your stable. Would they be
variations of the products you are offering? Or would they be completely new
offers? It’s left to you.
4. Leverage the Internet
Consider growing your
business using the internet. You can sell your product through your own
corporate website or partner with an existing online retail store such as
Amazon. While it is not compulsory that you sell your offers online, your
growth strategy should include an online element.
5. Decrease costs
The wider the gap between
your income and expenditure, the faster your business will grow. Decreasing
your costs is a smart way of widening this gap. As you go on with your
business, you can take advantage of learning curves and economies of scale.
Learning curves improve your efficiency with time. Economies of scale refer to
a reduction in average cost over time because of factors such as buying power
and managerial specialization.
6. Acquire other businesses
Acquisition is another
option to consider when planning how to grow your business. However, you can
only be realistic in this quest if your small business is well established and
ready to expand into other markets. You have to address which companies would
make ideal acquisition targets. Find companies that are a good fit for your
product and methods of marketing and distribution methods, and that are very
likely to present new opportunities for growth.
After studying the business
growth options discussed above and choosing the ones you think will work for
your business, here are the next steps to follow:
How to
Present your Business Growth Strategy in a Business Plan
1. Explain the development
options and opportunities in detail.
2. Review and document the
financial requirements for each option.
3. Document the marketing
strategies you will need to accomplish and nurture your chosen growth option.
4. Review the financial
breakdown of internal or external capital and how the capital will be made
available throughout the growth process.
5. Document a breakdown of
other things that will be needed, expanded, or ditched.
6. Print your growth plan and
review it regularly until you are ready to implement it.
Having a growth plan helps
you keep your business on track and in line with the various options you may
adopt in order to expand your business. It’s like a compass that leads your
business through the way to development.
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