The statistics are grim.
Magazine 7 Business Growth Strategies for Small Businesses Take a look at some of the largest businesses today, and you are likely to be blown away by the numbers they boast in terms of capitalization, revenue and profitability. There is Subwaythe fastest growing franchise in the world with close to 45, restaurants as of Septembermaking it the largest single-brand restaurant chain and the largest restaurant operator in the world.
These are the companies that are making the big bucks and controlling pretty much a large portion of the market. They wield so much influence and power, it is hard to business plans for growth strategies international them being less than the business behemoths that they are today.
This is their reality: Unfortunately, it is also a reality that only a handful of an entire slew of small businesses will actually grow to join the ranks of Walmart, Subway and The Body Shop.
What eventually made them break out of that group and charge ahead of their contemporaries? The likeliest answer, aside from determination and good business practices, is the application of business growth strategies. Small businesses have several options to choose from, depending on various factors and circumstances.
We will look into seven of the growth strategies that are applicable to small businesses hoping to expand their operations and occupy a larger share of the market.
This works best in a scenario where there are no new products, and there are no new markets to enter. Left with no choice, the small business will then look at what it currently has, right where it currently is. That means the focus will be on the current products or services, in the current market.
It is pretty straightforward: This is a competitive way of doing things, because the small business will be facing its competitors head on, implementing various strategies in order to increase its market share.
Some of the market penetration strategies employed by small businesses are: Reducing the selling prices of the products or services, with the intention of attracting consumers with the lower price.
This works best in a market with very little differentiation. Walton effectively used this strategy when it set up its first Walmart store. There were other retail stores at the time, but what made his market share go up is because he was able to offer the products at lower retail prices than the other retailers.
Increasing promotions for products or services to improve their pull strategy.
Aside from both conventional and non-conventional forms of advertising, small businesses can also employ other means to attract customers.
Examples are special offers, special promotional events, offering trade and sales discounts, rebates and similar schemes. Not only will this appeal to your current customers, it will also catch the attention of the users in the market that were initially unaware of your product, brand or company.
Expanding distribution channels to widen your reach. Usually, this is done by looking for more distributors, retailers and dealers, making the distribution channel wider.
Small businesses should also consider entering into partnerships with these major channel players, and nurturing the relationship so they will want to continue working with you. A wider and more stable distribution channel means greater chances of reaching your customers, and staking a claim on a bigger market share.
Effecting improvements on the product.
You can encourage more people to buy your product if you are able to improve on its existing features, or find alternative uses for it.
However, in many cases, there is usually no need to actually do any changes to the product. In this strategy, the efforts are focused specifically on the customers of the competitors. But it also extends to the dealers, retailers and distributors currently working with the competitor.
If you can offer them a deal better than what they are currently getting from their partnership with the competitor, they may consider jumping ship. It is important to note that, in market penetration, the size of the target market is fixed or unchanged. This is markedly different when the strategy used is Market Development.
However, businesses can also grow when they seek to expand their market, and that is Market Development. There is also the possibility that a product reassessment reveals new usage for the product, which will take it beyond the current market. For example, a product initially developed for health and wellness purposes is discovered to be effective as a skin care product as well.
This means that the producer of the product will no longer be limited to the health-conscious market, but it can also branch out into a new market, which is for beauty products.
In this scenario, there is no new product, but there is a new market, and it in this new market that the business will be able to gain more market share, more sales, and definitely more profits. The potential market is expanded either through identification of new users or new uses for the product.
This is often seen in how businesses undertake expansion to new geographical markets, such as other states, regions, countries or continents.
Possibly, the most recognizable practice of this growth strategy is by adopting the franchise model, which was how Walmart, Subway and The Body Shop grew.Jul 09, · Strategy in your growth-oriented business plan serves 4 Essentials of the Growth-Oriented Business Plan.
The business plan for strategic growth is one of 5/5(2). GLOBALSTRAT was featured in the August edition of the Association Forum of Chicago membership magazine with focus articles on international strategy development.
The likeliest answer, aside from determination and good business practices, is the application of business growth strategies. Small businesses have several options to choose from, depending on various factors and circumstances. The growth strategy section of your business plan is about proving to others that you have a plan for bringing your product to new customers and new markets, and perhaps even introducing new products. Jul 05, · How to Write a Growth Plan. Unlike a regular business plan, a growth plan focuses specifically on growth Write a Strategic Plan for an %(15).
Download a copy of the articles with information on how to use a process based approach to develop your global growth strategy. Expanding business globally requires slightly different international expansion plans than a plan based on stages of business growth over time.
It is possible to consider a new business strategy and global business strategy and work backwards from a global perspective to formulate a more traditional type of business implementation plan. Sep 19, · The highlight for the specialty coffee company has been its development progress and future plans Let's Look At Starbucks' Growth Strategy.
Jul 05, · How to Write a Growth Plan. If you're lucky, your business will grow without much effort. However, most business owners need a plan. How to Write a Growth Plan. including a marketing strategy and different financial documents. If you need help, you should visit a business %(20).
Developing a Growth Strategy: Diversification. Another category of growth strategies that was popular in the s and s and is used far less often today is something called diversification where you .