While most entrepreneurs only start with small businesses, there are those who never manage to grow out of them. Just because your company is outperforming, it doesn’t mean that the growth is guaranteed. You see, a steady customer influx and positive net accounts are just resources. As such, you can use them for future growth or merely ignore their potential and use them as an end goal. For those with a bit more ambitious course of action on their mind, there are four simple tips for growing your small business.
- Do market research
The first thing you need to do when penetrating a new market is to estimate how it’s going to behave towards your product. Just because you came up with something handy, it doesn’t mean that people are going to pay for it. In order to ensure that your idea is profitable, you need to ask yourself one crucial question – how much do my clients actually need this? Just look at the example of Uber. They took the simplest idea possible (urban transportation), improved it, made it more convenient and more smartphone-reliant. What they did was solve an old problem with a fresh idea, which was bound to result in a success.
Another thing that a lot of people fear, when it comes to the market, is the number of competitors. Needless to say, having a lot of competitors is not nearly as bad as you might assume. First of all, the competition is probably tough because the market is lucrative, which is generally a positive thing. Aside from this, when all of your competitors are using one and the same thing, it’s much easier to breakthrough with a superior offer. Think about it. Having a million-dollar idea doesn’t look that impressive unless the side you’re pitching it to has something which can be used for comparison.
2. Expand your reach
The next thing you need to do is work a bit on your reach. For starters, you need to hype-up your company/product, and the most obvious way to do so in 2018 is on social networks. Depending on the type of your product, you want to focus a bit more on certain networks. For home maintenance, arts and crafts and gardening companies might have a large impact on Pinterest, while tech-startups probably want to double their efforts on YouTube, which is currently the world’s second largest search engine. Needless to say, the more networks you include, the better and Instagram, Facebook, Twitter and LinkedIn need to be your first stop either way.
Apart from social networks, you should probably use email marketing as well. Sure, social networks are a bit subtler, seeing as how they often don’t appear like they’re targeting you directly. Nevertheless, the efficiency of email marketing simply shouldn’t be underestimated. The ROI of this method is the astounding 4400 percent, which means that you stand to earn $44 for every $1 you invest. Finally, you also need to understand that reaching out to other businesses via an email (especially a well-structured one with a signature and optimized content) is a great practice. In other words, it needs to serve as your primary B2B outreach tool.
3. Burn some cash
The next thing you need to understand is that you can’t conserve your profit if you want to grow. As your reputation grows, you might feel the urge the raise your prices, and yet, this is not something you can do indefinitely. First of all, this might result in you losing some customers. Second, you can’t just inflate your prices without offering anything in return, seeing as how this will make you appear disrespectful towards your clients.
In most cases, in order to increase your profits, you will have to expand your capacities. This means hiring more people, outsourcing certain functions, leasing a bigger office and acquiring new equipment. Sometimes, you will be able to pull this off by using your profits, while in some situations you will find it better to apply for small business loans instead. Either way, in order to enable your company’s growth, you have to be ready to burn some cash.
4. Offer some extra features
In the first section (market research), we mentioned including some additional features to win over your customers. If you have a store, it might be a good idea to start an e-commerce platform with a delivery system in order to gain access to a larger customer pool and offer your audience a more convenient method of making a purchase. Moreover, the delivery system is incredibly important, regardless of your point of view. Free delivery, same-day delivery or next-day delivery can all serve as selling points, something that will help your audience choose you instead of your competitors.
At the end of the day, you should understand that growing your small business always takes time. Sure, going for any of the above-listed four features will give some immediate positive results, but in order for a real success to show, you need to display some consistency. The longer you keep up with these practices, the more loyal your audience becomes and the better your business reputation gets. Overall, once you set the right foundations for your business, it should carry on to grow on its own.
About the Author:
Emma Worden is a business manager from Sydney. She enjoys reading and writing on a business topic and giving advice and tips through her texts. If you want to read more of her work, you can find it at https://bizzmarkblog.com/