Most of the big companies started out small in the past but the reality is that only a handful of small businesses will eventually grow to become big brands. Growing a successful business is easier said than done and companies of all sizes face a lot of challenges. Wondering how you can ensure that your business is sustainable? You need to develop a growth strategy for your company. If you don’t have a solid plan for growth, you are actually increasing the chance of losing your business to your competitors.
If you want to grow your company, you need determination, good business practices, and application of good business growth strategies. Keep in mind that an effective growth strategy is more than simply envisioning long-term success. You should figure out measurable steps in your growth and follow them.
In this article, we are going to discuss the types of business growth strategies that can be used by any business to achieve long-term success.
#1. Market Development
According to Olivia Tan, the co-founder of CocoFax, this strategy involves increasing sales of existing products on new markets. Market growth can take a lot of forms. You can expand sales to a new geographical area – a new city or a foreign country. This can be done via a partnership with distributors with established networks. If you plan to enter a new market in a different country, it’s important to consider differences in local regulations and culture. Well-known brands can do market expansion by offering franchise options to local entrepreneurs. In this way, they can enter new markets with lower risks. You can start selling products online through your own website or Amazon and eBay and reach national and international customers.
#2. Product Expansion
This strategy is also known as product development and involves launching new services or products on the existing markets. SMB typically use this strategy by offering different variations of their main product lines to reach a large audience. For example, you can develop a premium version of your product for the luxury market segment. This method is a useful addition to any business growth model because it is based on the existing infrastructure. New products can be added by investing in research and development of additional products or purchasing rights to produce a product of another company.