Five ways to Grow Your Business
Any business owner that makes it through the survival phase deserves recognition. Small business owners are the lifeblood of the global economy, creating jobs and paying taxes that keep the global business climate growing. If you have survived the initial start-up phase, then you are among only ten percent of companies that have managed to persist through the challenges and become stable business models that generate positive cash flow and profit.
The next phase of business will not be any easier than the last. Growing your business will present new challenges that you will have to overcome. However, it’s better if you have a plan to start with instead of no idea. The chances are that your business plan has not been brought up to date in a while. When considering a growth strategy, the first thing to do is to look through your previous plans and decide on the direction that will suit your company and its unique characteristics.
Here are five growth strategies that you can use to grow your business. Read through them and decide one that you feel will offer your business the best value for time and capital invested. Once you have made your decision, get to work on creating a plan to execute it as quickly as possible.
#1 Leverage the Online World
Does your business have a presence on the internet? Designing and launching a website about your company is an essential part of doing business in the information age. However, apart from occupying your piece of cyber real estate, what is your website doing to drive you more customers and more business?
SEO strategies and social media marketing are viable, inexpensive marketing strategies that yield tremendous results. Link building, influencer marketing, and user engagement are the keys to a successful online marketing campaign. Speak to a professional online marketing team about ways to increase the reach and awareness of your brand and its products or services.
#2 Create a Licensing Deal
This growth strategy is ideal for companies that have information based products. You can license the product to other retailers or consultants and have them market your business and your products for you, without the hassle of building your own sales teams to do it. Licensing agreements usually involve up-front signing bonuses as well as royalties on any product sales by licensees.
#3 Merge with Partners
If your business has expanded rapidly and you have plenty of excess cash reserves, then you might want to consider an LBO (Leveraged Buyout) of a competitor or partner company. This strategy allows you to absorb the best parts of your competitor or partner and strengthen your own business. If your firm lacks in the logistics department, consider acquiring a courier firm or logistics company. If your business needs help with marketing, purchase a marketing firm with the expertise you need.
#4 Open Another Location
Bricks and mortar locations can take their business model and replicate it in another part of town. Do your due diligence and research potential local markets that would benefit from another branch of your business.
#5 Create a Franchise Opportunity
If you have built a business that relies on systems and procedures, then you can scale your model by offering it as a franchise opportunity. Franchises are popular with risk-averse business owners that are looking to purchase a working business model that has proven results.
Tips for Funding Your Growth Strategy
Some small businesses find it challenging to obtain credit from financial institutions due to a lack of a credit score. In such a case some micro lenders will accept the risk and assist companies with business loans with bad credit scores. Run any credit agreement past your accountant and lawyer and make sure that your business has the cash flow available to handle the loan repayments.
The Final Thought
Add your new growth strategy into your business plan and begin executing on it as soon as possible. The business environment continues to become more competitive with each passing year. Make sure that your choice of strategy keeps your business relevant in the marketplace and continues to drive profits.