Companies of every size face challenges that suppress their growth. A company might have a great product or service, but no business growth strategy to help it define, articulate and communicate where it is going. A growth strategy is different from an annual plan and can be difficult to develop if you’re unfamiliar with what it is, why you need it and how to create it. Instead, a growth strategy addresses how your company is going to evolve to meet the challenges of today and in the future. Growth strategies are important because they keep your company working towards goals that go beyond what’s happening in the market today. They keep both leaders and employees focused and aligned, and they compel you to think long-term.
The unfortunate truth is that many start-ups or companies fail because they haven’t taken this crucial step. Without it, a new business can reach a plateau far sooner than expected; this stage may even be a death knell, yet it is possible to turn things around quickly by implementing some appropriate business growth strategies.
Companies need to look at the following Growth Strategy Focus Areas:
Value Propositions
The company must design a value proposition that clearly states what it does and why customers need it. Then it must create a growth strategy that provides the steps (i.e. growth moves) the company is going to make to take new things to market.
Think Long Term Business Growth and Expand Into the New
Your organization needs to invest time and energy in thinking about where the world is going and what it means for your customers, partners, employees, etc. Your growth strategy will help you make good decisions for the future of your business, even though it might seem uncomfortable to place bets when even the present seems uncertain. Outlining longer-term goals will help you to determine the steps you need to take and measure your progress along the way.
Brand Relevance and Customer Experience
Building a brand is much more than a logo and a color palette (although those things are important for brand recognition). Your brand should be recognized by its values and by how customers experience you – both of which should be highlighted in your growth strategy.
Key Growth Factors include:
Market Penetration
Market penetration aims to increase market share for an existing product, or to successfully promote a new product.
Market Development
A market development strategy pertains to promotion of existing products or services to new customers or launching them in a new geographical area. It might be that your usual market has been saturated or you’re struggling to attract new customers or clients in your local region. Sales and profits are apt to suffer unless a business finds new markets for its products.
Alternative Channels
Utilizing alternative channels is one of the best methods of growth in business. Many businesses already use more than one online platform for marketing, but sometimes switching platforms achieves better results. Trends in recent years show that having both an offline and online presence leads to optimum growth, so it is worth considering.
Product Development and Expansion
A classic strategy that involves developing new products to sell to your existing customers as well as to new ones. Businesses can benefit hugely from expansion of product lines or adding new features to appeal to their existing markets. You may be experiencing a lull in sales or profits due to outdated technology or outmoded products. If so, it could be time to expand your product line.
Market Segmentation
Another business growth strategy is market segmentation. This simply means to divide your market into various groups (segments) according to customer preferences, interests, locations and other characteristics. These segments allow you to create targeted campaigns according to specific variables, giving the campaigns a much higher chance of success.
Partnerships
By joining up with a complementary, non-competitive business you can instantly gain access to new customer bases and markets. You might choose to do this though mergers, acquisitions or partnerships with other businesses. Provided that the arrangement brings significant benefits to all parties, it can be a true win-win situation that boosts resources in a big way. LSG can help your company develop or enhance your intensive growth strategy.
