Although growth is the most commonly discussed topic in the entrepreneurial universe, the top three reasons startups fail (being outshone by your competitors, offering a product or service not geared towards your target market, and a lack of funds) are all related to a palpable lack thereof.
In a nutshell, businesses that stagnate will fail. By better understanding what it takes to successfully instigate growth, your business will be better equipped to deal with a range of scenarios and ultimately come out on top! Here are some of the most common ways to grow your business:Growing your top line sales. You can do that by:• Expanding your client base: fold in new sectors, target markets, and distribution channels while keeping any expansion of your team, production, and distribution aligned with one another.
• Increasing your value per client: offer complementary services or products, incentivized training programs, or irresistible tiered bundles.
• Increasing your price per unit or service: adding value will justify this! You might also consider changing your business model (i.e. from sales to leasing) as a way of boosting revenues.Growing your profit margins. To do that, you can:
• Find the most efficient route: streamline and optimize operations wherever possible; this may seem like more work, but it’s ultimately less!
• Raise your selling price: again, make sure to add value to justify an increase.
• Utilize economies of scale: increase production in order to lower costs.
• Offer high margin services: to achieve higher overall margins. Check out some of the most profitable businesses for inspiration!Growing your product mix:
• Listen to your clients & watch your competition: What needs remain unfulfilled? What do your competitors do well, and what can you do better?
• Go wide: broaden your offerings (think of lifestyle companies that offer accessories, apparel, shoes and protein shakes).
• Go deep: increase your variety (think of drink companies offering soft drinks, juices, shakes, water).Growing your market share:
• Dominate your niche: work on achieving recognizable branding and delivering a quality offering, alongside having a strong marketing and customer engagement strategy.
• Keep a finger on the pulse of your client base: keep up with and respond to their evolving needs.
• Acquire competitors (if you can): both within your market and in new markets, but always be sure to assess if/how your new company will help you to achieve your long-term growth goals.Bottom line: As a general rule, sustainable growth is gradual, but continual. It takes courage to grow, and mistakes will be made—but as long as you’re committed to evolving, you’ve got this! A YES Business Coach can help you create a successful growth strategy. Visit yesmontreal.ca to book your first appointment.