If you’ve ever had a conversation with fellow business owners about how to grow your business, many times, the only advice they have is to diversify your investments. While investments and acquisitions work, they’re only one way to grow. On the other hand, if you try to do your own research, you’ll find that there are countless options claiming to be the best growth strategy out there. But how do you know what works for you?
DesignPoint is a growth advisory firm for manufacturing. So, we’ve done the research for you. In this article, we’re only talking about three unique ideas we’ve found for growing your business that aren’t the same old things you always hear about. Read on for all you need to know, right here in one place.
Using Strategy as a Catalyst for Growth
As entrepreneurs and business owners, we understand your desire to grow your business. Most businesses have plans in place that aspire to growth. But just because we say we want to grow doesn’t mean it is necessarily happening.
This is where a growth strategy comes into play. We can’t just hope for growth or simply aspire to it. We must reach for it, plan and strategize, and then take intentional action in order to realize it. Strategy acts as a catalyst, spurring us toward certain expansion.
3 Sure Ways to Grow Your Business
Through our years of experience in the arena of business growth advising, we’ve found that your individual goals and business objectives really dictate what will work for you. However, there are three unique, high-level approaches to growing a business that seems to work regardless of industry. Many more detailed strategies will fall under one of these three approaches. Let’s take a look at each one.
1. Penetrating Current Markets
If there is still room for growth in your current market by obtaining a higher market share (gaining a higher percentage of sales in the current market as compared to competitors), then market penetration may be the way to go. You’d then invest your energy in promoting your products within the same markets you are in currently to gain that higher market share. This can be the case when you’re a relatively small business or just starting out and is often the easiest and first growth strategy to look into.
2. Developing New Markets
When there isn’t room for expansion within the current market or if the market is completely saturated, there’s no chance of increasing your bottom line there. This means it’s time to look elsewhere for growth. Enter market development (also called market expansion).
This is when you find new markets in which to sell your current products. It can also mean finding new uses or users for your current products and promoting accordingly to those new markets.
3. Expanding Product Lines and Creating New Markets
When there’s no more market penetration or development to be had, it’s time to innovate in order to continue expanding. You might consider enhancing current product line offerings, adding new product features, or selling totally new products to brand new markets.
We’ll warn you, there is some risk here, as adding anything new in an existing business comes with inherent uncertainty. Until the proverbial rubber meets the road, you can only guess at the return on investment (ROI) and profit margins.
Expanding into new products or markets requires an extensive amount of research, planning, and forecasting. If you’re a small business, you may not have adequate staffing or skillsets in the house to do all that. This can really be a hindrance to your progress. However, hiring a growth advisor is probably not as expensive as you might think. What’s more, the returns you’ll see from having expert advice that’s been completely customized for your business will surprise you!
Transforming Your Growth Strategy and Your Business
While these 3 strategies sound nice on paper and in theory, they truly are just high-level approaches. Perhaps it’s time for a more personalized approach and thorough, thoughtful guidance that meets you where you are? As you might have heard, we now have a strategic team dedicated to these consulting initiatives precisely!
Business expansion isn’t something to take lightly. So, if you’re ready to understand what strategies are available and how to best leverage them in growing your business, contact us today!
DesignPoint is 100% dedicated to help you find and conquer unique growth opportunities that fit your needs and goals. Let’s talk growth strategy!