All small businesses require a proper growth strategy to expand their prospects and earn better revenue. Steven Rindner points out that it is important for all entrepreneurs to review their business from time to time, and identify the ways in which it can grow. It also is vital to implement a growth strategy as fast as possible, as the variables chosen for it may change with time. In simple terms, growth strategy can be referred to as the plan that highlights how a business can grow from its current stage to the place the entrepreneur aims to see it in the future.
Start-ups and small business entrepreneurs set out to make their mark in their chosen markets with a lot of positivity and enthusiasm. Steven Rindner mentions that while the drive to succeed and hard work is important for entrepreneurs, to actually grow in the modern competitive market it is vital to have a long-term business growth plan in place. Unfortunately, a lot of small business entrepreneurs fail to give the needed importance to this crucial step. Without a good growth strategy, a new business may get stagnant sooner than expected, which would severely hinder its revenue and expansion opportunities. For the long term success and continued progress of any business, growth strategies are extremely vital.
Here are some crucial elements underlined by Steven Rindner on whose basis entrepreneurs can formulate their small business growth strategy:
- Market penetration: Market penetration is focused on increasing the market share of an existing product, or promoting a new one. Useful strategies involved in it include advertising, providing discounts on larger orders, lowering prices to beat competitors, as well as bundling products into saleable packages. Even though several entrepreneurs tend to have inhibitions when it comes to lowering prices, this could be a good short-term expansion strategy for any business. If a business cannot improve or increase its product range, then it can always try to make its offerings more attractive by coupling them with complementary products and selling them as a package.
- Market development: A strategy based on market development aims at promoting existing products or services to new customers, or trying to launch them in a new geographical area. This strategy is usually used when the usual market of the entrepreneur is saturated or they are struggling to attract patrons there.
- Alternative channels: Using alternative channels can go a long way in facilitating business growth. A number of modern, small-scale businesses already use more than a single online platform for marketing, but at times switching platforms ends up delivering better results. The most popular marketing channels today are social media, email marketing and business websites.
- Market segmentation: Market segmentation basically implies to divide the market into diverse groups or segments as per the customer preferences, locations, interests and other parameters. These segments enable people to develop targeted campaigns as per specific variables, ensuring a superior chance for its success.
A comprehensive growth strategy developed by paying heed to the above-mentioned pointers can prove to be quite helpful for any business.