In order for small businesses to remain competitive they must take some tips from their larger competitors when it comes to growth. There are many different strategies that can be used and the type you choose will mostly depend on your financial resources and your competition. While most owners recognize the need to grow, many are unsure of how to go about it. It’s important to first take a look at the different types of strategies available and then determine which ones will bring about the best results. This can take some trial and error but becoming familiar with your options can streamline the process. Here we’ve outlined six of the most common ways big business uses to increase their market share. While many small business owners may be familiar with these strategies, few have dedicated the time and resources to making them work. In today’s business world if you’re not growing, you’re shrinking, and if the need for growth is ignored, small businesses stand to disappear completely.
Market Expansion
Market expansion is also referred to as market development. This is the process of taking your current products and services to a new market. This involves researching new markets that don’t currently utilize your products but could potentially benefit from doing so. This can be done by looking at your current customer base to find small niches within them to focus a marketing strategy on. For example, if you’re a restaurant owner and notice a local company frequently brings their clients to your establishment for business meetings you may consider campaign that is geared towards encouraging other businesses to do the same. This could include special discounts, group rates or rewards programs.
Product Expansion
This would include adding new products or services to your current offerings or even just adding new features that appeal to a wider customer base. There are several ways to determine what types of additions would be beneficial. Before you launch something new you will first want to determine the level of need. Survey current customers to learn what they like about your business. Researching competitors to see what they’re offering that you aren't is also a good way to gauge trends.
Market Segmentation
This is simply choosing a subset or niche of your current market to focus your efforts on. You may already have an audience that tends to migrate towards your solutions and it may be beneficial to increase your marketing efforts to target them. Becoming known as a leader in your industry within a niche market will help you gain customers who realize you specialize in servicing their demographic.
Diversification
This is a strategy that includes selling new products to new markets. This is perhaps the most drastic change a company can make and brings about a certain degree of risk. Not only will you be selling to a demographic you’re not familiar with, you will be providing products and services that are different from your core offerings. This type of strategy needs to involve in-depth market research in order to be successful but can open up a wide range of revenue opportunities.
Talent Investment
The quality of your products and services can largely hinge on the talent you accrue to produce and provide them. An investment in a new salesperson, expert chef or additional customer service representatives can add a much needed element to a company looking to grow. Employees provide the foundation of successful small businesses and making the right hires can make or break your company. While labor is a cost that many owners try to keep down, quality should be your main focus.
Funding Your Growth
While maintaining everyday operations take up the majority of a small businesses’ capital, it’s important to invest in the growth of your company. Quikstone Capital Solutions provides merchant cash advances which provide owners the leverage and flexibility to continue to grow.
