It is every business owner’s goal to stabilise and expand their business, increasing revenue and reach in the industry. But you can’t just go ahead blindly without putting a business growth strategy into place. Having a business growth strategy is important because it can help you achieve long-term success and sustainability for your company. Without a clear plan for growth, many businesses struggle to compete in the market, attract new customers, and increase revenue over time.
A well-crafted growth strategy can help you identify new opportunities for expansion, whether through new product or service offerings, entering new markets, or developing strategic partnerships. It can also help you anticipate and prepare for potential challenges or obstacles that may arise along the way.
Here are some of the best growth opportunities to include in your overall plan.
Business Growth Strategy Examples
Market Penetration Strategy
This strategy involves increasing sales of existing products or services in an existing market. The company achieves this by using targeted marketing campaigns, pricing strategies, and promotions to capture a larger share of the market.
Product Development
This strategy involves developing new products or improving existing ones to meet the needs of new or existing markets. Companies can achieve this by investing in research and development and using customer feedback to create innovative and relevant products that serve their relevant market/s.
Market Expansion or Development
This strategy involves identifying and developing new markets for existing products or services. Companies can achieve this by targeting new geographic areas, or by finding new customer segments for their products or services. Be sure to commit resources to industry research to ensure you develop the right products.
Diversification Strategy
This strategy involves developing new products or services in new markets. This can be achieved through internal product development, mergers and acquisitions, or strategic partnerships. New products and acquisitions are a fast way to access a new market, enabling organic growth.
Strategic Alliances
This strategy involves collaborating with other successful companies to leverage their expertise, resources, and customer base. Companies can achieve this through joint ventures, partnerships, or strategic alliances with complementary businesses.
Franchising
This strategy involves expanding the business by selling the right to use the company’s brand, products, and services to third-party operators. Franchising allows the company to undergo rapid growth and leverage the expertise and resources of franchisees. Opening in new areas unlocks customer acquisition that wouldn’t be possible from a single location.
Acquisition Strategy
This strategy involves acquiring other businesses to achieve growth and scale quickly. This can be achieved through mergers and acquisitions, or by purchasing existing businesses to add new products, services, or customer segments to the company’s portfolio. Ideally, this also lets you take on their existing customers and expand to an additional target audience.
Which of these business growth strategies is the best?
It differs for every business and industry and depends on the amount of capital, current market share, and amount of existing and potential customers available. No one strategy is going to be optimal forever, the key to a successful business growth plan is to be changing and optimising your strategy to reach the most customers and increase revenue based on current industry trends. Keep on top of your competitive research, don’t just watch the habits of the larger players in your industry, but also of new generations of customers and small companies moving into the space, they can provide valuable insights.
Any expansion requires funds. When you have an expansion plan and are ready to enact a product expansion or reach new users in other ways, you can enable rapid growth by having more working capital. A business loan is an easy way to keep the business running smoothly during expansion.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at March 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.
