When a community is lucky, there may be a successful company that shares what it’s learned in growth strategy. The company may even reveal some business growth strategies that work well and ramp up fast. There are essential elements which need to be followed for a company to be successful.
The below informational guide is a good place to start. The informational guide will help you find ten criteria and approaches your company may need to grow and develop.
Business Growth Strategy
Only 1/10th of 1% of businesses ever reach annual revenue of $250 million. This low percentage may not be a shock to business owners. It’s important to understand what the 1/10th of 1% are doing right to be able to make such high annual revenue.
The top-tiered highest revenue growth companies practice business with a few essential elements. These elements help them begin the process of stellar development. What are the ten business growth strategies they implement?
1. Market Penetration
Try to find new ways your customers can use your product or service. Most of the time, this means your product or service needs to increase market share. Market share is defined as the percent of unit and dollar sales a company holds onto in a targeted market.
You will notice some companies increase their market share by lowering their prices. Some companies find new ways to market their product or service, so it performs another function. Think of how travel companies partner with hotels, give discounts, get on directories like Kayak or Tripadvisor, or market through Pay-per-click.
There are several formats and venues you can use to help penetrate your market no matter your product or service.
2. Market Development
When your company has successfully navigated acceptable levels of market penetration, you need to figure out a way to sell your product or service in other markets. This can be selling your product or services to another city or state. Any adjacent market success, helps your business to grow. Employment agencies are very successful in market development.
Employment agencies implement their growth strategy by adding job seekers and employers from new locations continually. Fast-growing companies develop and grow strong in market penetration and market development.
3. New Products for New Customers
Sometimes it’s the one-on-one approach that lets you know what you need to meet your customer’s service or product wants. Try to understand your customer needs from the beginning of their interaction with you. Your understanding of what they want will help you mitigate any issues that arise along the way.
What’s more your customer interaction will give you vital information about what you still need to offer your customers. This may mean you need to offer your customers a new service or product. As time moves forward, customer needs change.
Pay attention to those changes continually.
There are many times your business may need to diversify from what they originally marketed. Companies may need to become more timely and usable in the market they’re targeting. Sometimes diversification happens when you purchase a company that has little to do with your original product and service business.
However, to be successful at diversification in today’s marketplace, you have to be very astute in reading the marketplace. You have to be able to read the marketplace’s wants and needs almost before customers know what they are interested in.
5. Redefine the Playing Field
The strategy developed at successful and growing businesses relies on not limiting their playing field. Growing and developing companies think about their entire customer ecosystem. What connects its customers’ interests and relationships?
What defines the interests of the stakeholders and the customers? What connects the interests and relationships of the stakeholders and other opportunities? These companies uses purpose as their business map guide for growth strategy.
6. Remodeling Value Proposition
As businesses notice their diminishing revenue and take a look around at the commodifying world, they need to come up with ways to enhance their value. Companies who enhance their values through new and innovative products and services are more successful most of the time. If you broaden your mission to fit the customers, you help create a holistic value proposition.
Companies successfully remodel their value proposition through:
* Trust building
* Find and focus on your pain points
* Respond to trends in the market
It’s important to understand changing trends or threats to your business model continuously.
When start-up businesses fail, they fail 42% of the time due to the lack of research on the market need for their product and services. You need to properly research your competition, market need, and your customer base. If you don’t you may be in trouble from the start.
When businesses fail it is because they made assumptions about the need for their product or service. The companies fail to execute adequate research to ensure their success.
If you want a company to succeed and grow, you need to be accountable for what is promised to the customer. You need to remind yourself to deliver on your business promises or guarantees. Many customers forget good service, but they rarely forget a great product or service.
9. Solve Problems
You need to be able to solve hard business problems if you want to employ a business growth strategy that works. You want to garner a reputation for tackling the jobs or issues other companies shy away from. Nothing is ever gained when you turn away business if you have the staff skill sets or products to get it done.
10. One Size Doesn’t Fit All
Just because something worked for another company, even if it’s similar to your company, doesn’t mean it will work for you. You need to understand your company’s unique strengths and weaknesses. Then you have a chance to figure out what growth strategy will help you build a successful business.
Your businesses growth strategy begins with your capabilities. Its growth and development depend in part from the businesses position of strength. Most companies cannot grow or develop if they are always struggling or reorganizing.
You can become part of the top-tier companies of 1/10th of 1% multi-million dollar businesses. When you arr ready to start the project, business, or design that you know leads to a lucrative future, companies like Construction Concepts can help you make your business goals and visions come true.