5 Recommendations for Growing Your Business Without Spending Money
Hoping to make your business more successful, but you don’t feel like you have the resources to build it? It’s a common problem among small business owners and learning how to grow a company when you have financial constraints certainly isn’t an easy task.
Fortunately, there are several things you can do to grow your business that don’t cost anything. Before you even begin to deploy any of these strategies, though, it might help to learn a bit about the standard company growth strategy models.
Understanding Company Growth Strategy Models
Most business experts will tell you there are a few common growth strategies in every industry. Market penetration is the first of these.
This happens when you market your existing products in the same market, but you do something different to increase your market share.
For example, perhaps offer bulk deals or differentiate your marketing strategy. This doesn’t work for every company, though, because there may not be enough room in the industry for you to increase your market share.
Market expansion is the second one. Sometimes referred to as market development, you’ll sell your current line in a brand new market with this strategy.
For example, imagine that you realize your target audience could be expanded to include new mothers as well as mothers of toddlers. That’s market development in action.
Product expansion is the third one. Small companies that expand their product lines or build in new features to their current products are using this strategy.
You’re still targeting your products at the same customers, but now you’re offering them more than ever. Diversification is an additional strategy, and this is a combination of the previous two.
Here you’re expanding your product line and your market. This can be a risky proposition because it tends to cost the most, which may mean the need for added marketing research. The final common growth strategy is the acquisition, and this, too, is a significant investment.
This occurs when you purchase a competitor so you can expand your business. It means pretty rapid growth, but it also means quite a bit of additional work on your part.
Low Cost Strategies That May Help
Under each of those common growth strategies is a host of activities you can try to expand your own business, even if you feel like you don’t have the cash to grow right now. Here are five options you may want to consider if you’re serious about growth but concerned about your spending.
How much time are your team members spending on tasks that could be automated? Whether it’s HR-related tasks, billing processes, or even lead management, there are likely many processes your team members tackle each day that could be automated. Wondering how automation is linked to business growth?
A Small and Medium Business Trends Report found that businesses working on automating their processes are nearly 1.6 times more likely to grow than those that do not. Automation may not sound like a traditional growth strategy, but it’s one that your team members may quickly embrace.
Build a Stronger Marketing Message:
Marketing isn’t what it once was, and if you haven’t closely looked at the message you’re sending out to customers since you created your business, it may be time to do so. First, make sure that your marketing message is the same on every single channel. Then, as you develop your materials, keep in mind that less is more.
You should also consider testing various versions of your message online. Go for something that addresses a concern your customer has and inspires them to choose your services. You’ll make that marketing message more attractive, and people will be more likely to buy from you in the future.
If you’re not online and on social media, customers today will not find you. Take the time to learn more about SEO techniques that can land you on the first page of every related search query. Use social media to connect with various audiences, too, but make sure you know how it works before you start using it to transmit a message. The goal with social media is to build a community, not just market to people.
Get obsessed with Customer Loyalty:
The customers you already have mattered to your business growth. A Harvard Business School report found that increasing your customer retention rate by just 5% could grow your business’ profits by 25% to 90%. Losing customers has a significant effect on the growth abilities of your business, so do what you can to keep those customers. That could even mean starting a customer loyalty program that has them coming back more regularly.
Incentivize Employees and Suppliers:
Your employees are invested in the growth of your company. Rewarding them for that investment could help improve your bottom line. Create a rewards system for employees who develop more efficient approaches to their day-to-day tasks. If they’re working harder to make sure your business is working smarter, you’ll want to incentivize that kind of behavior. Don’t overlook your suppliers in this mix, too. If you take care of them with simple things like rewards, they’re going to do a few extra things for you.
If you’re ready to do more with your company but you’re not quite sure where to begin, let AMB Performance help. With the right coaches on staff to help you move forward faster, we’re here to help build business success for the long term. Contact us today to learn more.