Transform Your Small Business into a Large Business
When you are starting a new business, the first thing you need to understand is this: the first few years, survival is your main priority. However, if you will make growth a priority, you will increase your chance that your company will last and also make you economically stable.
So, what can be done to move your business past simple sustenance? What can you do to create that income machine you’ve always dreamed of? Just like any other part of running a business, there are several strategies that you may wish to try. We’ll take a look at some ways you can transform your small business into a large one.
Reach Out to Existing Customers
Many entrepreneurs believe that acquiring new customers are the best way to grow a business, but the truth is, your existing customers are best for increasing your sales and many studies have found that customer retention improves the value of your business. If a customer has purchased from you in the past and had a good experience, they are more likely to make another purchase. Be sure to grab the captured contact information of customers making a one-time purchase. Then, you can use that information to turn them into repeat customers. The best growth for most businesses is a combination of strategies to retain current customers and acquire new ones.
Acquiring new customers is also beneficial and the best way to do this is to ask your current customers to refer their friends, family, social media followers, and others they come into contact with. Since your current customers are your target market, chances are those they interact with will be as well. Of course, you should never assume that they are telling others about you- instead, you need to be asking for referrals.
Keep Costs Under Control
One of the keys to growing your small business is increasing your bottom line. If you increase your market share, but your costs also increase, you won’t have the cash to invest into the business and you won’t make a profit.
Therefore, when you’re looking for opportunities to grow, pay attention to the costs associated with them. There are two ways that you can decrease costs:
• Liquidate and eliminate products and services with low-profit margins
• Improve inventory turnover with new marketing/sales strategies
While you’re cutting costs, be careful to avoid impacting customer and employee satisfaction. Two keys to growth are happy employees and customers.
Extend Your Reach
You can grow your small business into a large one by making your products and services to a new customer base. This can be done by:
• Opening new stores in new locations (including virtual)
• Targeting a new demographic
• Encouraging new ways to use your products
These allow you to expand your reach, which increases sales as well as stabilizes your business model. You are more likely to survive changes in the market when you are not reliant on one type of customer.
Another key to growing your small business into a large one is through diversification via building on similarities. This is done one of two ways:
• By focusing on products/services related to those you already sell
• By focusing on new segments in the market with similar needs/characteristics of existing customers
Choose the Right Strategy for Your Business
These are just a few of the ways you can transform your small business into a large one and the right one for your small business depends on a variety of factors: the stage your business is in, the resources you have, and more. They are not all appropriate for every business and they don’t all appeal to every business owner. Here are the steps to finding the best one for you and your business:
• Choose 1 or 2 that fit your business and circumstances
• Build a new business plan based on your chosen strategy
• Set goals for growth, revenue, and expenses
• Evaluate goals regularly to monitor progress
Keep in mind, growth is not going to happen overnight. However, if you are systematic and consistent with your implementation, you will eventually see progress. If your chosen strategy doesn’t work, step back and try again with something different. Contact Masters Commercial Capital Group today to help transform your small business into a large one.