As the year comes to a close, many business owners spend their time examining their business’ current condition. In some cases, people may think their business is performing as they’d hoped. In other cases, though, people may be dissatisfied with their current business performance.
Instead, they hold higher ambitions. They want a way to ensure steady business growth for their company.
If you’re one of these business owners, you likely know the many benefits of business growth. It increases your reliability and profit significantly, along with attracting promising new talent.
The trouble is finding business growth strategies you can rely on. If you want to grow your business but aren’t sure how—don’t worry!
In this article, we’ll explore how to expand your business to meet your goals. So, without further ado, let’s get started!
- Market Expansion
One reliable strategy for growing a business is through market expansion. In this method, a company begins selling its current products and services to a new market.
Why would a company do this? Often, businesses find that they have little room left to grow in their industry. Consider Amazon for a moment.
Amazon launched as an online bookstore, offering excellent prices and books of all kinds. It wasn’t long before they developed a remarkable delivery service that soon became the best in the US.
However, the book industry isn’t for everybody. Not all people enjoy buying a library’s worth of books for their home or office.
So, instead, they expanded to include several other types of products. These days, there’s hardly a product in existence you can’t find on Amazon’s website.
This expansion has made the company a giant in the world economy. Even before the pandemic, in 2018, 63% of Americans said they’d bought something from Amazon.
Several other companies do the same thing on a smaller scale. Software companies expand from the IT sector into developing educational software for schools.
Now, find a way to bring this home to your company. What products and services do you offer now? How could you expand those products and services to fit a new market?
Once you figure this out, you’ve got a chance to broaden your market to whole new levels. So, start looking for ways to make it happen!
- Product Expansion
We’ve talked about market expansion, so let’s move on to product expansion. Product expansion involves a company expanding its product line or redesigning old products to increase sales and total revenue.
You don’t have to look too hard for examples of this. In the world of movies, you may have noticed that Disney has been on a remake kick.
Over the past few years, they’ve produced live-action versions of beloved animated classics. Films like Beauty and the Beast, Aladdin, The Lion King, and Mulan garnered significant attention at the box office. This string of updated classics is a type of product expansion.
As far as developing new products goes, several companies do this regularly. Think of new iPhone models or updated Windows packages as examples of this practice. Businesses that master this technique have fewer limits, often managing to expand globally.
Once you understand how other companies do this, the next step is to bring it home. How can your company expand its products and services?
This answer could vary depending on your industry. If you run a service-based company, such as an HVAC technician service, you may need to expand into other home services.
However, if you run a product-based market like a software company, you can expand by developing new solutions and updating old programs. So, spend some time looking over your files to determine what’s most feasible.
- Market Penetration
Lastly, business growth can occur through the skillful use of market penetration tactics. This approach works differently than the two others we’ve discussed.
In the other two methods, you must find a way to expand your business into either new markets or new products. With market penetration, however, these new additions are unnecessary.
Instead, this strategy requires you to find ways to market your existing products and services to your current market in new ways. Your goal is to increase your sales and gain more notoriety in your current industry.
In doing so, your company increases its market share. The market share is the percentage of dollar and product sales it holds within the market. To gauge your performance, you measure your market share against your competitors.
So, what tactics can help you penetrate the market? First, you can use dynamic pricing.
Dynamic pricing allows for pricing automation. As such, regardless of your product’s size or complexity, the software solution can research the market and set prices to the best rates.
As you set your prices, begin advertising your new rates. Make sure people understand how great a deal you’re providing them! This way, people become more excited to take advantage of the offer.
Adding Distribution Channels
Another market penetration tactic is adding distribution channels. This approach involves finding new ways to reach your customers.
For example, let’s say you run a store that only leverages retail locations. You could add more distribution channels by incorporating email marketing into your repertoire or opening an online store.
Targeting Specific Areas
Some products and services serve a seasonal purpose. Others may have a higher demand based on location. For example, a company that sells sunscreen would likely get more traction in Phoenix or Los Angeles than in Seattle.
If you can target the best location, you can see a surge in sales. So, research and discover what areas could benefit most from your products!
Using the Best Business Growth Strategies
These three business growth strategies can have top-notch impacts on your business. All that’s left for you is to find a place to start.
Your company may be in a better position to implement some of these strategies over others. So, find out which one seems like the best way to begin growing your business!
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