The majority of today’s large corporations formerly had modest beginnings, but only a tiny number of these startups will ultimately develop into household names. Statistics demonstrate that
- Only 50% of businesses succeed for more than five years.
- 9 out of 10 new businesses fail
- Only 0.1% of companies ever generate 250 million in revenue annually.
It’s easier said than done to expand a profitable business, and businesses of all sizes encounter numerous difficulties. Do you want to make sure that your company is sustainable? You must create a growth strategy for your business. Lack of a growth strategy really increases the likelihood that your clients will go to your rivals.
You need willpower, ethical business conduct, and the implementation of effective business growth methods if you want to expand your enterprise. Remember that a successful growth strategy involves more than just visualizing long-term prosperity. Determine quantifiable steps for your improvement and adhere to them.
Of course, the size and potential for growth of small and medium-sized firms vary substantially. SMBs clearly encounter common business growing pains and issues at similar periods in their development, despite having distinct organizational structures and management styles.
The stages of business growth and various business growth techniques will be covered in this article in order to help any firm succeed in the long run.
5 Processes of Business Growth
All small firms go through distinct stages of the business life cycle as they expand, and they all run into unique difficulties that may call for various approaches to solving them. Knowing which stage you are in can have a big impact on your company’s operations and strategic planning. When you make the decision to launch a firm, you begin the business life cycle, and the early phases are usually always fraught with difficulties and growing pains.
1. The development phase is merely the start. You are prepared to start a new business because you have a great idea for it. Your business idea needs to be put to the test; conduct market research; get input from friends and experts in the field to determine whether it is worthwhile to pursue. The benefit of consultation is somewhat constrained if your concept is a ground-breaking one that could revolutionize the market as it is today. To test your idea, you should create an MVP (minimum viable product).
2. The early stages. Your company is now legitimate. Your business has created products or services, and you’ve started promoting and selling them. The main issues at this point are finding clients and providing the goods or services. The only goal of the business plan is to continue to exist and be profitable.
3. Survival. The company now has a sufficient number of clients and welcomes more. Revenue from the company is used to offset operational costs. Before opening up shop to the general public, the company’s size and profitability could increase, necessitating a change in your business plan.
4. Phase of expansion. The company is doing well. It’s time to grow and discover new markets and avenues for distribution. You might increase sales quickly and add more goods and services. The main issues are how to expand quickly and where to get funding for such expansion.
5. The corporate life cycle concludes with the maturity stage. The company is the market leader. The business has enough resources to do thorough and comprehensive planning. The company can be a strong competitor in the market if it maintains its entrepreneurial spirit. Entrepreneurs now have two options: continue growing the business or shut it down.
Different Business Growth Techniques
Different models for corporate growth exist. Your early objectives are outlined by the founder’s ideology and are distinct. Simple business operations that increase profits are the growth model for your organization. But as your company enters a more developed stage of its lifecycle, you’ll need to create a strategic growth map that will work in tandem with your business model.
As a living organisms, businesses must expand in order to thrive. There are a number of typical corporate growth techniques, some of which could carry a higher risk than others. Considering your company’s size and skills, you can also utilize a combination of some of them or their modifications. To find out what combination works best, you can experiment and test out two or more tactics.
You can apply the following techniques to boost profit:
- enhancing your marketing efforts for currently available goods
- gaining entry into new markets
- expanding the range of products
- increasing by way of acquisitions
Increasing sales of current products in new markets is the goal of this strategy. There are numerous ways that markets might grow. You can increase sales in a new geographic location, such as a new city or another continent. Collaboration with distributors who have established networks will enable this. It’s crucial to take local laws and customs into account when planning to join a new market in a different nation. Well-known businesses can increase their market share by giving local business owners franchise opportunities. They can expand into new markets in this way with fewer risks. Through your own website, Amazon, or eBay, you can start selling things online and reach both domestic and foreign clients.
The most realistic and unconventional approach is this one. The majority of small and medium-sized firms will be affected. The majority of business owners have a bias; we fall in love with our merchandise and marketing strategies. It’s sometimes true to say that our target audience doesn’t feel the same way we do. This strategy’s primary objective is to challenge our own judgment regarding the selection of messaging, user flows, and marketing channels. You must embrace the possibility that, despite your extensive market experience, you may not be fully aware of all the needs of your customers or the factors influencing some of them to choose your competitors. Start by conducting a thorough examination of your rivals and taking note of both their achievements and shortcomings. Give CRO (Conversion Rate Optimization) analysis some time. You will gain several ideas for enhancing your marketing operations by doing this. Efficiency will be improved by having an extra set of eyes or some Extrabrains by your side during this workout.
Need Assistance Creating a Plan to Expand Your Business?
Everyone is aware that developing a business takes a lot of time, work, and careful planning. Quick decisions and large investments may seem enticing, but if they don’t translate into completely sustainable and functional business models, they won’t produce the outcomes you want and may leave you disappointed. Before taking any actions to expand their enterprises, all organizations must document their business growth strategies. Of course, you’ll need to conduct some market research and the paperwork will take time, but the initial investment will be worthwhile in the long run.
The process of creating a successful growth strategy is not universal. Making strategic decisions based on other companies’ successes would be unwise. You may, of course, learn from other businesses, but you also need to create your own strategy based on the data from your own. Your plan should be customized for your particular industry and target market. Extra brains may assist you in creating a successful growth strategy for your company if you are unsure where to begin and need guidance. For small and medium-sized firms, our professionals have vast expertise in developing effective growth strategies that actually work and produce results. Make an appointment for a free consultation with us to find out how we can assist you in making strategic decisions that will inevitably result in profitable growth.