5 Small Business Growth Strategies for New Businesses
Startups and small businesses usually appear incredible and rewarding; it may be easy to start a business, but scaling your business growth can be challenging. And, it takes considerable effort to grow your business to the next level. In the beginning, it’s like wearing different hats. Of course, with growth come risks but you don’t need to be a billion-dollar global brand to influence market share. What you need most importantly are irresistible small business growth strategies.
Growing your business has a wide range of advantages but to truly succeed in competitive markets you have to be strategic from the beginning by having long-term small business growth strategies in place.
6 Key Points to Make Small Business Growth Strategies More Effective
Whether you are running a dropshipping business, a small-scale photography business, home based bakery, or a real estate business, you must know that a strategy can be useful only if it is executed rightly. So, before exploring the growth strategies for small business that make the most sense to you, know these six key points that can help you make the most out of your strategy.
- Implement more than one business growth strategy to minimize risk and maximize market share.
- Choose small business growth strategies that align with your budget, goals & competition.
- Be true to your strengths, positioning and differentiation.
- Have strong grip on your brand identity.
- Know your customers desires and satisfy their needs better than your competitors.
- Make changes in small business growth strategies as needed.
If you are at a stage where your new business needs a boost, you need to figure out which growth strategies for small businesses can be put in place. This article will surely help you to understand how to accelerate your business’s growth with small business growth strategies.
5 Proven Small Business Growth Strategies for New Business’s Success
Usually, there are many growth strategies for small business startups but if you know exactly how you want to grow your business then these 5 small business growth strategies will surely help you to choose the right strategy for your needs.
1- Market Penetration to Increase Market Share
Market penetration is one of the most important, more utilized, and easiest to implement small business growth strategies. It is about selling your existing products to available markets to increase your market share.
According to CB insights, 42% of businesses fail because of a lack of market share. So the higher it is the better for your business.
You can increase your market share in different ways listed below
- Reduce prices.
- Provide special offers & discounts.
- Increase your brand awareness.
- Sell your products/ services through new channels.
- Make your products/services more appealing to your customers.
2- Alternative Marketing Channels
If your business is operating in a highly competitive market then finding new opportunities to grow your business can be excellent.
You can sell your products/services through the following channels to introduce your small business to an entirely new audience.
- Online selling (you own website to sell or a third party website like Amazon, EBay)
- Mobile App (create an app that customers can use to order a product/service)
- Social media (showcase your products directly on platforms like Instagram, Facebook etc.)
- Selling offline (use shop, sales expos and trade fairs to network with new customers)
3. Emphasize on Market Segmentation
Market segmentation is about dividing your market into various groups according to your customer’s preferences. You basically reconsider your brand’s place by narrowing down your target market.
It will involve thorough research to efficiently profile your customers. For this purpose email surveys, purchase histories and site analytics can be a good start.
However, 65% of marketing managers admit to struggling in market segmentation so you can also use powerful Customer Relationship Management (CRM) tool to optimize your segmentation effortlessly. Once you have segmented your target market, you can create more targeted ads for potential customers.
4- Strategic Partnerships
Strategic partnerships with other brands can generate growth through other brands’ audiences. However, it can be very difficult to find the right business to partner with you.
You should work with a business that offers product/services that complements yours so you get access to their audience.
Lyft and Taco Bell is an example of strategic partnership. Lyft offered Taco Bell delivery service to its customers in which Lyft passengers could request a trip at a local Taco Bell with a simple tap within the Lyft app. This partnership led to publicity for both businesses and an increase in sales of Taco Bell.
5- Prioritize your Existing Customers
As the customer base, retention and loyalty is the key to the success of any business. Retaining customers and having their loyalty can bring significant profits to your business so prioritize existing customers over new customers because convincing an existing customer to return to your business is much easier than convincing a totally new customer to give you a chance.
You can stay in touch with your existing customers through emails by offering them discount in exchange and sending them updates about new products, sales & events. Also, take their feedback through reviews.
Summing Up Small Business Growth Strategies
However, success doesn’t happen overnight but by constructing a solid base with the above-mentioned growth strategies for small business startups, you can inject a new life into your business. By staying determined, strategic, and persistent; you can achieve significant growth for your small or new business.