Business growth involves increasing revenue, customers, market share, or production. Since each company is an ecosystem, there needs to be a universal formula for business growth. Revenue, customers, and market share growth indicate business expansion.
Read on to learn why business growth is important, its types and stages, and how to get ideas for your company.
You can also read: 5 things to do to take your business to the next level
Why should every company grow?
Every company wants to grow because, without growth, it stagnates. Avoid success metrics; the business owner decides growth factors. Your invention needs a customized approach. If you grow, all your business areas will be fine. Discuss this process.
First, the obvious. With business growth, you can earn more. Startups must demonstrate brand value to consumers, even if they charge higher prices. To beat competitors, differentiate and offer a strong advantage. If you need help with that, raising prices may fail. Consider targeting new markets or closing more deals.
Businesses grow through people. They can buy more from you or give you insights to improve. With regular customer attraction, a company gains growth opportunities. Customers prefer companies that change so that you can get caught in a cycle. Thus, growth opportunities are needed to increase sales and clientele.
Development-focused companies slowly gain market share. They outperform their competitors, giving them advantages like better supplier terms.
Growing a business impacts customer service. Investing in support improves after-sales service, which boosts customer loyalty, satisfaction, and retention. Since rapid growth and attracting new customers can make loyal customers wait for hours, businesses should focus on client relationships and customer experience. Since retaining customers’s cheaper than acquiring new ones, this may lead to brand switching, which is bad for each brand.
Growth also draws job seekers. Everyone wants to join a large community working to perfect a product. Thus, such companies receive many CVs and can select the best candidates.
Business growth helps companies increase revenue, expand their product line, partner with suppliers on favorable terms, reach new audiences, hire professionals, and finally reach the top business goals. Let’s examine business growth types.
Business Growth 4 Types
Business growth has four main types. Each type views growth differently and fits businesses at different stages. Discuss each business growth strategy.
Organic
Business growth is easiest and most effective this way. Startups and newcomers benefit most from it, while established brands are less likely to succeed. Organic growth involves physical business expansion, such as adding products, working in shifts, renting large spaces, opening new stores, etc. Expanding your business space lets you produce more, meet demand, and serve more customers.
Strategic
Long-term goals and organic growth companies benefit from this approach. Organic growth funds strategic growth strategies. This can include adding products and advertising to new markets.
Internal
Company expansion. This works for organic and strategic types. It optimizes the company’s workflow by using resources more efficiently, not production. It could be SendPulse or lean systems.
Partnership or Merge
Combining or merging businesses. This strategy involves working with another company to benefit both. A partnership helps companies launch a new product, produce more goods, grow their markets, and gain customer loyalty.
After learning about business growth, let’s examine the stages each company goes through.
4 Important Growth Stages
At each stage, businesses face different challenges. To overcome these challenges, let’s examine each one.
Startup phase
Startups aim to survive. The business owner hires employees for various roles. Their main goal is brand recognition and product value on a budget. Startups must compete and meet customer needs.
Growth stage
The startup has a business model and is growing. Many entrepreneurs avoid growth because it scares them, missing out on opportunities. However, expanding the customer base is essential. The startup’s limited funds make it easier.
Mature stage
The business was stable enough that the owner no longer needed to contribute. For years, all processes have worked well. At this stage, owners focus on geographic expansion, global recognition, and product diversification. Despite stable growth, maturity requires more cash flows for new strategies and promotions.
Renewal/decline stage
Although risky, owners may think it’s safe. They may stop expanding because they have a steady income and brand recognition. Thus, with new ideas and technologies, their business may succeed.
Now that you know how each business operates, find ways to help it grow.
How to expand quickly?
Business growth is difficult. After expanding your company, finding new ways to grow your audience, income, and production can be hard. This section’ll share several ideas to help startups and established businesses grow.
Hire marketing experts
Since a business owner plays many roles, your team is crucial to its success. To reduce workload and focus on more important tasks, find genuine product enthusiasts. Since marketing beginners may have many new ideas that experienced employees can implement, your team may include both.
Retain clients
Retaining customers is cheaper than attracting new ones, especially for startups. Customers will return and recommend your product. Create a loyalty or affiliate program to attract customers. Customer retention improves revenue, word-of-mouth, and loyalty.
Create a sales pipeline
The sales funnel shows how leads become customers. Understanding the customer’s path helps you identify your best strategies, methods, marketing acquisition channels, and client loss causes. Thus, you can predict sales, cut costs, and increase repeat customers. Sales pipeline stages include lead generation, prospecting, qualification, contact, proposal, negotiations, and retention. It lets you manage sales reps and make informed decisions.
Competitor analysis
Research competitive intelligence. It will reveal industry trends, client expectations, competitor actions, weaknesses, and strengths and increase your income. Save money and invest in winning strategies this way.
Use CRM
A CRM lets you track customer interactions with your brand throughout the buyer journey. Closed and ongoing deals will be visible. You can also access client cards anytime because all customer data will be stored in one place. Sales reps can contact customers, make personalized offers, and collaborate more easily. SendPulse’s free CRM automates sales and client communication.
Get online
Every brand needs an online presence since users spend hours on Facebook, Instagram, and Twitter. Take advantage of this free brand awareness opportunity. Demonstrate your product, share cases, and testimonials, show behind-the-scenes of your company, ask customers for feedback, post content regularly, run ads, and maintain brand consistency. Traffic, engagement, and marketing strategy will improve.
Online and offline events
Webinars, conferences, and workshops help brands attract new customers, communicate with brand fans, share knowledge, collaborate with partners for more business opportunities, and raise brand awareness. For business growth, host regular events.
You now know the 4 types and stages of business growth and how to scale your business with little investment. Use SendPulse promotional tools to boost revenue, improve customer relations, and automate tasks!
