When most business owners imagine how they’re going to grow their business, they think about their marketing plan and yearly review. However, there’s more to scaling up your business than simply making more sales. True growth entails streamlined processes, improved profit margins, and greater efficiency, to name a few. To achieve growth, you need more than the sum of your marketing and business plans. You need a growth strategy.
How do I start building my growth strategy?
A growth strategy typically begins by determining and accessing opportunities within the market. You outline particular business goals, then figure out how you can leverage those market opportunities to meet those goals.
A successful growth strategy brings together expertise in design, leadership, marketing, engineering, and product management. It’s more than adding functionality to your business to increase the growth of your product or service; it’s also the way in which you plan and rally as a whole team.
What goes into a growth strategy?
An effective growth strategy maps out different ways that your business can expand into the market and create an urgent need among your target audience. In addition to streamlining your processes and empowering your team to be more efficient, you should develop the following components of your growth strategy.
1. Diversification Strategy.
To truly grow your business, you need to break into multiple market sectors. Never put all your eggs in one basket, as the saying goes. Instead, identify opportunities to diversify your income streams in order to ensure your future growth.
2. Market Penetration Strategy
Being in business isn’t enough. To grow your business, you need to increase your market share by better penetrating the market. This might be achieved by marketing to new audience segments, adjusting your prices, offering subscriptions, or bundling products.
3. Market Development Strategy
Part of improving your market share is to encourage demand for your product and build a loyal customer base. A market development strategy entails tactics designed to further refine and expand your target audience’s need for your offerings.
4. Product Development Strategy
You can also grow your market share by offering new products or services that solve a problem for your target customer. By innovating solutions, you can corner a market niche that has few to no competitors, thereby ensuring that you have the dominant market share.
How to Create an Effective Business Growth Strategy
Creating a growth strategy requires collaboration among a cross-functional group of team members. Everyone has something they can contribute to a powerful growth strategy.
- Think long-term
It can be challenging, but it’s important to prioritize the long-term needs of your business rather than fixate on the present. To achieve true growth, you may need to make sacrifices on current wants so that you can ensure success down the road.
- Keep customer experience and brand relevance in mind
Your growth goals are dependent upon building a loyal community around your brand. To boost your business, focus on encouraging brand loyalty, and making sure that your brand identity connects with your target audience. You want to align your brand, meaning that your target audience can understand and appreciate your value proposition.
- Automate your processes
Creating an efficient business takes more effort, time, and resources. That’s why it’s important to automate your processes to achieve true growth. By reducing your costs, you boost your profits.
A thorough, robust growth strategy sets your business up for long-term success. Keep in mind that your growth depends on three factors: your ability to minimize your costs and improve your efficiency, your capacity to expand your market share, and your connection with your audience to build a loyal following.
At Masterly, we see you as the superhero, and we make it our mission to be your sidekick as you aim to grow your business idea from a concept into one superhuman force that can be reckoned with.
So suit up, business owners talk next time! Your Masterly Team