Business growth strategies is a common subject in many boardrooms. Its the case because in today’s competitive business world, growth requires strategic planning and implementation of effective strategies. To achieve good results, having clear business growth strategies is essential.
Business growths are in various aspects such as growth in revenue, customers, products, etc. Occasionally, a company would pursue one or more of the growth paths. That choice majorly depends on the company’s industry and target market. As a business leader or owner, choose business growth strategies that align with your budget, goals, timelines, competition, and desired market share.
According to Ansoff Strategic Framework, there are four strategies that an organization can apply to realize strategic goals. It’s designed to help you figure out which strategic directions you would want to take to successfully grow your business. The four strategies are:
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Market Penetration
Market penetration is more of selling existing products to a broader market. The focus here is for you to find other customer segments to sell your product to. It involves intensive marketing efforts to get to the new market where customers may not be aware of your products or how your products can help them.
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Product Development
With product development, you introduce a new product or service to the same market. Here, the same customer gets yours perhaps as a supplement or otherwise. As a result, of this, you’re exposed to greater risks.
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Market Development
In market development, you sell existing products to a new market. You can segment your market or venture into a new market.
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Diversification
Diversification strategies involve selling a new product to a new market. It’s the most risky of all the approaches as it involves a new product in a new market.
Other business growth strategies are:
- Acquisitions
- Franchising
- Strategic partnerships
- Improving efficiency in your business
Types of Business Growth Strategies (By HubSpot)
Revenue growth strategies
- Invest more resources in sales training programsto boost close rates
- Leveraging technology to improve sales forecasting reports
- Using lower-cost marketing strategies to lower customer acquisition costs
- Continuing to train customer service reps
- Partnering with another company to promote your products and services
Customer growth strategies
- Investing in your marketing and sales organization’s headcount
- Increasing advertising and marketing spend
- Opening new locations in a promising market you’ve not yet reached
- Adding new product lines and services
- Adopting a discountor freemium pricing strategy
- Tracking metrics such as churn rates, customer lifetime value, and MRR
Marketing growth strategies
- Rebranding the business to appeal to a new audience
- Launching new products to appeal to buyers in a new market
- Opening new locations in other regions
- Adopting a different marketing strategy, e.g local marketingor event marketing, to appeal to new markets
- Becoming a franchisor so that individual business owners can buy franchises from you
Product growth strategies
- Adding new features and benefits to existing products
- Adopting a freemium pricing strategy
- Adding new products to the existing product line
- Partnering with new manufacturers and providers
- Expanding into new markets and verticals to increase product adoption
In essence, growth strategies take various ways depending on the objectives of the business. As a business leader, take multiple and sustainable approaches that suit the path you wish to take for your business. As you undertake any growth strategy ensure to maintain good ethics to avoid failure.
