Every company strives to be successful and aims for constant growth. Whether growth means acquiring new companies, franchising, or simply increasing revenues, it is a natural part of business and should be planned out strategically. Here are some of the top business growth tools being utilized by SMB’s and large enterprises across the globe.
Before contemplating expansion outward with new ventures, look at how you can grow your business from the inside first. This includes tapping into your existing customer base, expanding your marketing efforts, getting ideas from currently employees, and other changes that can be made at the root of your company. After reaching out to existing customers, you may find that you get more referrals and subsequently more business.
Until you have acquired a large portion of market share, internal growth or market penetration should be an ongoing process, and a business growth strategy that is at the top of your list. This article from Richard Branson explores the importance of internal growth.
Unlike internal growth, market expansion focuses on selling existing products and services to new markets. This technique is often used in cases where a company has already achieved significant market share in one market, and the next logical step is to enter new markets. If the company were to stay restricted to just a single market, growth would eventually become very minimal or impossible.
Market expansion can also occur if a company discovers a need for their product(s) in a new market. For example, when Facebook initially launched, it was primarily used by college students to socialize with friends. Over the years, the social network has expanded to allow people from all over the world to connect, and in the past few years they have put a focus on marketing to businesses. If Facebook would have restricted themselves to just being used by college students, they would not be anywhere near as successful as they are today.
Adding new products
Consumers have developed a short attention span. This is especially true in the field of technology, but it applies across the board for the most part. Companies are challenged to continuously come up with new ideas and products to satisfy the demand for the latest and greatest products. It can be difficult for a company to grow without extending their product line at some point. Companies that have been around for decades such as Coca Cola continuously release new products to explore new growth opportunities.
When new products are introduced, companies have an opportunity to reach new markets that may have never heard of their primary products before. Significant research is done before releasing a new product to the public. Research and development plays a big role in product expansion.
Collaborations and partnerships
Business growth does not have to be done alone. Collaborating with other companies can be a great way to reach new audiences, and extend a brand. This is exactly what occurred when the Giant Food grocery store chain partnered up with Shell gas stations for the Gas Rewards program. The program combines two products that people use every day –gas and food, to aid in the growth of both companies.
Customers who get gas from Shell now have an incentive to shop at Giant and vice versa. This strategy can be applied to many other industries as well.
A very popular business growth tool is acquisition. This is when one company purchases another to expand. This trend is very popular in the online industry. Since this method requires large sums of money, it can be risky if the company being acquired is in bad shape. However, when acquisition works properly, it can produce great results as proven by IBM.
Kfir Bar-Levav started out as a sales rep in 1995 and since then has acquired extensive entrepreneurship skills and sales experience as a result of working in the field and managing the sales teams of leading international fashion and luxury brands. Kfir founded WRNTY Ltd. in 2006 and today serves as VP of Business Development.