When it comes to running a successful business, having a growth strategy is key to ensuring that your business becomes profitable and stays that way. Entrepreneurs often fall into the trap of thinking that a good business plan covers everything, but actually a continually revised growth strategy is how you take your business to the next level. A good growth strategy goes beyond the business plan and gives the company goals to work towards over the long term. So, how do you create one for your business?
Set the pace
All business owners want to know the secrets to a successful start-up so that they can begin reaping the rewards as soon as possible, but it actually pays to work out a pace that you can handle and factor that into your growth strategy. Companies that grow too quickly can sometimes fail under the weight of the demands thrust upon them, so plotting an achievable pace of growth is a great way to ensure that your business stays in it for the long haul.
Establish a value proposition
It is super important to work out what exactly makes your business stand apart from the competition. Why, for instance, would you expect you customer to come to you rather than your competitor? Identify what special benefit it is that only your business can provide and center the rest of your strategy around that.
Analyze the competition
Of course, you can only work out what makes you stand apart from the crowd by analyzing your competition. Look at what they are excelling at, what their strengths and weaknesses are, or whether they have any ideas that could inform your own growth strategy. Don’t limit yourself to looking only at companies with similar products and services, widen your net a little and find inspiration from other companies who might be offering something different but still within the realms of your niche.
Practice strategy games
Playing games might not seem like the most important thing to do when you have a business to run, but strategy-based activities such as sudoku, chess, and poker all have one thing in common. A great deal of skill is needed to solve the challenges presented in these types of games, and it is important to use a lot of logical thinking to analyze patterns and apply learned concepts. These are essential skills for business and so practicing them will help you to develop a mindset that you can easily apply to the strategy of your business.
Identify the best revenue streams
Every business has one or two revenue streams that are more successful than the others. Sometimes, those revenue streams can be a complete surprise to business owners, who perhaps had expected something else to be more popular! It’s important to make the distinction between ideas that you think are great and products or services that actually sell. Identify which revenue streams work for your business and work out whether they are going to be sustainably profitable in the long run.
Pinpoint your market
The whole aim of a business is to provide a solution for a customer, so it is absolutely vital to identify who that customer is. By creating a clear picture of who your ideal customer is, you will be able to design targeted marketing strategies that will have a much higher chance of success. Keep referring back to this customer as your growth strategy progresses to ensure that you are targeting the correct audience at all times. This will save you time and money on marketing in the long run.
Whether you’re just starting a new business or you’re looking for ways to generate more income from your existing one, a growth strategy is a vital part of ensuring the success of your business. By identifying your value proposition, ideal market, and best revenue streams as well as setting the pace, analyzing the competition, and practicing strategy games, you will give your company the best shot at staying profitable for the long haul.