Small business growth is a goal of many entrepreneurs. We all want to succeed in this industry. When you have dreams of owning your own small shop or franchise, think about how you can turn those dreams into reality. You can do so by planning carefully and putting your ideas into action. Here are some tips that will help you achieve your goals for small business growth and, eventually, increase your profits.
Sell more to existing customers. Expand your client pool by introducing new products. Break into new niches. As you gain experience in small business growth strategies, you will know what tactics work and which ones don’t.
Small business planning is an essential part of the growth process. Small business planning involves brainstorming and evaluating your ideas. It also requires you to determine how you will implement your ideas. It also requires you to set realistic growth goals that you can assess periodically as you progress toward them. Here are some ideas for small business planning goals:
* Increase sales. Your growth goals may be to increase sales as a whole. Or perhaps you have goals that focus on specific items, such as new customer acquisitions or new order sales. Whatever your goals are, keep them simple and realistic. To increase sales, you may have to reduce inventory or improve ordering services. Make sure that your growth plan includes specific goals related to increasing sales.
* Achieve first stages. Rapid growth is best approached in four stages: planning, action, evaluating, and results. Plan ahead for any problems that may arise. Prepare a work strategy for each stage by setting realistic goals, implementing them, and measuring performance. As you achieve each stage, evaluate your performance and revise your plan accordingly.
* Achieve second stages. Successful growth requires a strategic planning process. The second stage of growth is to set a goal. In this stage you must determine how you will reach your first growth objective and assess your progress towards that goal. As you achieve each objective, review your plan to continue to grow at an accelerated rate.
* Achieve third stage. In the third stage of your growth plan usually outlines ways to expand the market share you already have or gain market share through innovative or competitive strategies. At this point the owner usually identifies new market segments to exploit and develop.
* Achieve fourth stage. Growth usually involves establishing and retaining existing customers. This stage develops a strong customer base that contributes to overall business success. To increase sales in this period the owner should develop new customer segments and increase sales to existing customers.
* Achieve fifth and final stage. Growth strategies often consider new customers as well as existing customers for the ultimate outcome of business growth. In this final phase, the goal is to expand the market share gained in the previous four phases. To do so, it’s recommended to make changes to maximize current customers while minimizing the cost of developing new customers. For example, the ideal customer segment for a restaurant may be families with kids.
* Excel in fifth stage. Excel growth is often based on the previous stage. By learning more about each stage and applying lessons learned throughout the development process, an entrepreneur increases their chances of success.
* Excel in stage iv. Once the growth plan is implemented and the company is running smoothly, the focus turns to revenue and profit. This is the most challenging stage of implementation, because an entrepreneur must know what levers to pull to increase revenue. One way to do this is to use marketing or advertising tools, but these tools need to be managed properly to avoid being viewed as a form of spending.
* Excel in stage iv. There are two types of customers: the first is repeat customers. Repeat buyers make up half of the customer base for small businesses. The second substage III-G is “growth-oriented customers.” Growth oriented customers consist of customers who have not purchased from the owner within the previous year.