When creating a business strategy, it’s important to consider a lot of aspects. The most obvious ones are the market, competitors, and the initial investment needed to start the business (usually called the “capital required”). Many more have a major impact on your strategy, though, with one big category being growth methods.
What goes into a successful growth strategy? Let’s take a look at the top elements that you should consider.
New Clients
Where will your new clients come from? Explain how you’re going to get them and the strategies involved. You can’t expect a steady stream of clients if your existing customers are not spreading the word about your business. You need a plan to win over new potential customers, too.
New Products
Pursue new product offerings that will appeal to the same customer base, but put your firm in a different direction.
Franchising
If your business can be easily replicated, why not franchise it? A franchisor can grow more quickly than a traditional company doing 100 percent of the work in-house and enjoy lower costs and reduced liability by outsourcing certain functions to local operators.
Online Sales
Internet sales should be a major consideration in your growth strategy. If you can create an online distribution channel, taking advantage of websites such as Amazon and eBay can dramatically grow revenue streams.
Creative Branding and Marketing
Branding is a critical part of many growth strategies. These methods should be spelled out as part of your overall marketing strategy so that the strategies work together to make the most impact on your business.
Reducing Your Costs
As you grow your business, your operating expenses will increase. You’ll need to invest in more staff and training for that expansion. Look at the internal and external costs of growth before diving into new markets or new product lines.
Acquisitions
Do you plan to buy out a competitor or an entirely new company? Will you pay cash, stock, or a combination of the two? Don’t assume that mergers and acquisitions are complex undertakings.