Do you know how the top businesses in the world continue to be successful? The answer lies deep within their growth strategies. Every successful business employs growth strategies that fit with its business goal and morals. It also complements their workforce and abides with government rules and regulations.
When every factor is perfectly placed, a growth strategy can reap benefits for any business. There are many such business growth strategies available at your disposal. Below is a list of 4 growth strategies you should use for your business:
Often businesses deal with their products successfully in a specific market. To improve, using the Market expansion growth strategy, a business can tap into previously unexplored markets where they can sell their existing products.
These markets necessarily don’t have to be domestic. A business can tap into international markets as well. Finding new customers helps a business improve its sales and profits, thereby increasing brand authority.
Market penetration allows you to plan how your business can grow in an existing market with competitors selling similar products. This is the least risky strategy as compared to the others.
Here, you will fight to steal as much market share as possible. But this strategy needs a lot of work and will involve pricing, product positioning, and marketing. There is a way you can calculate market penetration rate to understand how much of a product you are selling as compared to the total estimated market for that product.
What do your customers want? Is your product/s adding value in your customer’s life? These are the questions you need to answer. Listen to your customers and their needs. If your product is partially fulfilling it, then you can get it improved. If not, then you can create a new product with high value for your customers as they are willing to pay for it.
For a business to be successful using this strategy, adequate research, an understanding of customer wants, and needs are important.
Also considered as the riskiest growth strategy in the Ansoff Matrix, growth via diversification can take place when a business enters a new market with a new product. You can reduce the risk by related diversification.
E.g. A car company can start working on stereo systems for vehicles or a leather shoe producer can start selling leather wallets in a new market.
Another way of diversification is by selling a new product that has no synergy with your business. The plus point here is that if successful, it will open a new revenue stream for the business.
Some More Growth Strategies:
When your market share cannot grow, or the profit level is almost saturated, you can resort to acquiring smaller competitors who are either growing or weak. Doing this gets you more customers and a higher market share.
There are various channels of distribution available in the market, like wholesalers & retailers. Normally a business takes help from either wholesalers or retailers. If you can see a better impact using both, then do take help from both channels.
You cannot sell one product at one rate forever. It is not profitable and realistic to do so. Hence periodically, a price increase for each product is understood by customers. They too know that each year, costs are increasing, and hence it is natural to witness a price increase.
Lastly, Brand USP is one of the most important growth strategies. Does your product have a certain feature, quality, benefit, that is more advanced than any other similar product in the market? If there is something that sets you apart from the competition and matters to your customers, that means they will be ready to pay for that product easily.
These are some of the best growth strategies that are important for a business. They help to survive, improve market share + customer base, gain profits, and do this continuously.
Need help executing these strategies for your business? With over 20+ years of experience in growth & expansion strategies, International Executive Consulting LLC is the best growth & expansion consulting firm in the USA across diverse industries. Get in touch with us!
A small business does not need to make large-scale changes in its business processes to massively increase profits. Here we provide five strategies that you can use to improve your business. Today we will go to a system that you can use to increase your profit margin. By using this system, your profit margin can increase.
Increase Your Customer Base:
To increase the number of people who will come and buy from you, it will take time to develop a good marketing strategy. First, find the key differentiators. Examine the products that make you unique and attractive to potential buyers. After doing this one can find a place that can be tapped into, start working on specific marketing strategies to attract those customers.
The key is to streamline the sales process. At that point, the entire process is no longer driven by you, but by the system, and the sales process can be repeated over and over. You will continue to attract customers to your business without joining your marketing or sales team.
Increase in Number of Repeat Customers:
The more buyers, the more profit. Despite repeated sales, it does not take action and is getting those customers to repurchase your products. Providing excellent service is the basis, but it is not enough. Give customers a reason to return and you can do so by asking them to return. Deepen your relationship with them by adding to mailing lists, offering catalogs, and loyalty cards to name a few. Repeat opportunities for your customers to revisit your business
Increase in Average Selling Price:
Explore ways to sell more than one product at a time. This can be done by cross-selling; For example, see which products are related or complementary and offer customers to buy more plans than before. Refer to a customer for a product of a higher value or better deal (this may be more profitable for you), known as up-selling. Another example of increasing the average selling price is to bundle products together (a low-margin product with a high-margin product, one that sells well with someone who does not, etc.).
To increase profitability, focus on operational efficiency and avoid discounts. If it is a small business, the exemption should be at the bottom of the list. Sometimes they are unavoidable, such as when some products are not selling and they are replacing. These exemptions are a requirement but should not be used as a business strategy for profit growth. Find out how many of those items need to be sold to reach the same profit margin.
Reduce Costs to Increase Your Profit Margin:
Then, improve operational efficiency and minimize overhead costs. Keep in mind that some overhead costs are highly beneficial for the business, so be cautious about which costs are being cut; Do not take a reverse step.
Indicate the things that should cost more than them or at all. Adopt lean thinking and help cut the drains. By learning how to increase your profit margin, you will be able to run a successful business.
There are many business owners out there who still don’t know the difference between the profit and the revenue. They are counting the money they are making and coming into their business as the profit.
Well, what you should know is that the money that is coming into your business is not your profit until the expenses are paid. When the expenses are paid, the remaining mount of money is the profit.
Knowing these little things can be a way to improve the profitability of the company. There are many businesses with a huge customer base and they are still not able to survive in the market.
This is majorly because they do not have a plan to achieve the profits and are unable to handle their business operations properly.
Here are Some Ways to Improve the Profitability of Your Company:
Manage the Costs:
When you are taking a good look at the costs involved, then you can help your business move towards profitability. There are various wastages that need to be reduced and the businesses that find those are the ones that are able to make desired profits. Growth Strategy Consultant USA always help to manage the cost and increase the profits of the organization.
Take a look at the cost areas such as suppliers. Make sure that you are able to get the best deal from the suppliers. Also, make sure that you are always reviewing the finance facilities. Make sure that there are no loans overdue to keep the smooth functioning of the business.
Find the Best Customers:
The price is not just the concern that will affect the profitability but the type of customers you are delivering your product to will also make the difference. What you need to do is to focus on the most profitable customers out there even if this means that you need to let go of the less profitable ones.
This can help you boost the profitability of your business.
You also need to make sure that you are buying effectively – this can also increase your profitability. Make sure that you are reviewing your supplier base regularly so that you can find out the ways in which you might be able to purchase the raw material at affordable price.
When you are working to improve the profitability of your business, International Executive Consulting LLC able to reduce the costs, increase productivity and run towards substantial growth.
To get updated with the latest trends to improve your business growth, follow us on Social Media.
For a business, profitability is vital. However, most organisations lack the expertise and intellect to achieve success, since it requires them to look three or maybe five years ahead of time.
To develop a unique growth strategy, companies need fresh perspective every now and then. For instance, the managers who are accustomed to working in a business environment for a long time may not be able to see the negative aspects of it. If they somehow managed, implementing new strategies may affect the relationship with the staff.
Benefits of Hiring Growth Consulting Firms
To get an outer perspective in the highly competitive market, large number of businesses is resorting to the growth consulting service to lookout for unique strategies to increase sales, minimize operational costs, innovation, restructure business and bring novelty in service offerings. These firms are hired mostly on project basis.
Growth consulting firms have shown higher growth in last few years, in comparison with other professional services. This is due to the extended roles of consultants in the leading companies as C-suite executives and interim managers. According to the data published by Statista, the global management consultant market is expected to reach 344.38 billion by 2025.
Here are some of the major advantages of interim growth consulting firms that will contribute in this growth.
The demand of management consultants tends to be higher during strategic decision work or cutting budget costs. A deeper knowledge of the ins and outs of the industry allows consultants to give advice that works.
Change is important in an organisation. It brings the much needed newness required in the ever changing global economy.
Over the time, companies grow accustomed to routines and schedules which lead to a stagnant and stale work conditions. As a result, the business starts losing its capability to match up with fast moving environment and fail to meet the ever changing needs of the clients.
Growth Consulting is What Businesses Need
Increasing revenue, enhancing growth, improving profitability are the major problems with business performances. Not having a clearly defined business strategy, poor implementation, not considering external factors and excessive focus on day-to-day activities are the main reasons behind such issues.
The major reason growth consultants are in demand is because they provide a fresh and objective viewpoint which is more result-oriented. The consultants are outsiders and do not worries about what existing company workers may think. They can easily identify the issues that are holding a company back. They are least affected by the company culture and workplace politics. This makes it highly easy for them to implement the changes.
Win-Win Situation for Companies
Growth consulting firms help companies in developing an actionable strategy. The strategies are assessed against the marketplace realities. It is aligned with leadership, marketing and sales to achieve long term and short term goals.
The services of the consulting firms include business growth assessment, which may take a few days or weeks, as per the size of the organisation. The consultants sit with the executives to understand company culture and problems. Based on the assessment, a comprehensive roadmap is designed and implemented.
The consultants are experts in their chosen field. They have years of experience working with different companies. Their proven track record makes them an immediate choice. The highly qualified executives of growth consulting firms can also take up interim positions for short term basis, in situations of a sudden departure of a mission critical executive.
This offers huge monetary benefits to companies. Not hiring full-time employees and instead considering consultants save companies the additional benefit costs they would be paying to the permanent employee.
Growth consulting firms are acting as the catalyst for change, which is surely to reap benefits in long run.