Turning a small business into a big one is never easy. The statistics are grim with research suggesting that only one in four companies make it through the first year. Those who do make it through may start small and stay there. Yet, if that doesn’t quite cut the mustard with you, or if by staying small means your survival might be compromised, have a squizz at Stride Alley’s growth strategy blog. There are examples of companies out there that have successfully made the transition from start-up to small business to fully loaded large business; undoubtedly due to a great growth strategy.
Our growth strategy blog aims to inform and educate how companies can win a larger market share, or in simpler terms, businesses looking to grow. A growth strategy is the method that a company uses in order to achieve these goals for expansion. There are various options from which to choose. In Stride Alley’s growth strategy blog, we describe the two categories of growth, with each containing their own strategies.
Inorganic growth is growth through a partnership that generally consists of a merger – two businesses joining forces, or another company buying the majority of another company. Organic growth is a growth strategy where a company works to increase their volume of customers, amount of revenue and overall business development.
Organic growth is made up of four growth strategies. These four strategies can then be broken down into two categories: existing markets, products, or services and new markets, products, or services. Companies will select one or more growth strategies to reach their business:
- Market penetration– increasing marketing efforts with the same products or services you are already delivering.
- Market development– expanding into a new market using your current products or services.
- Product development– adding a new product or service to what you are already providing.
- Diversification– entering a fresh market with a new product or service.
If only half of start-ups survive more than five years, what is the one thing you could do to ensure your company stays sustainable? The simple answer is a growth strategy for your business. Yet this does involve more than simply picturing long-term success. If you don’t have a plan, you’re losing business or else increasing the chances of losing business to your competitors. The key is to be mindful. Figure out the potential growth and drench it with as much energy as you can muster.
Our growth strategy blog reveals that a one size fits all strategy is rather too vague. A specific plan is a successful plan. When you tailor your growth strategy to YOUR business and customers, you’ll keep your customers happy by fulfilling their wants and needs, which in turn will keep them coming back.