When we break down the business world to its very basics, we can summarize that the basic purpose of every company in existence is to increase its profits and grow. How they’re going to achieve that growth is a far more complicated issue. The road to success largely depends on one organization’s market place, financial situation, competition and myriads of other factors. Still, all these circumstances are exploited with common practices that are largely industry-agnostic. Let’s take a look at some of the best performing examples.
Select one of the common growth strategies
Although all companies work within a unique set of circumstances, the approaches they can take to expand their operations can be roughly divided into these five groups:
- Market penetration – Increasing the market share with the existing set of products, often through price adjustment.
- Market development – This strategy entails selling the existing products to new markets, usually in the case where current market leaves no room for growth.
- Product expansion – Expanding the product or service portfolio to increase sales and profit.
- Growth through diversification – Often considered, this strategy involves selling new products to untapped markets.
- Growth through acquisition – Essentially, one company will buy another to co-opt its market presence.
Do a detailed breakdown of your organizations and see which one of these strategies suits you the best.
Write a strategic growth plan
Once you know which approach you want to take, you should translate your intentions into a detailed growth plan that will precisely define your goals and the steps you need to take to meet them. Of course, all of your overreaching financial, developmental and marketing objectives should be split into manageable and measurable chunks you can tackle one at a time. If you have a problem working out these steps, you can set up a clear financial target and then try working backward.
Outsource data verification
Growing the company in any of the previously covered scenarios always leads to one thing – the expansion of the customer pool. In these circumstances, the management of Know Your Customer policies becomes increasingly harder. That is why expanding companies usually prepare for this influx of new clients by outsourcing the data verification to a third-party KYC vendor. By doing so, they are increasing the productivity of their core departments, improving monitoring, and reducing the operational costs.
Listen to the feedback
Improving upon your existing practices and expanding your customer pool requires having an excellent insight into all aspects of your organization. And the only way to get a complete picture is through the combination of Key Performance Indicators (KPIs) and customer feedback. In the latter case, the best results are provided either by extensive surveys or by direct interaction with the customers (e.g. phone calls). Once you gather a representative sample, you can start adjusting your plans according to your growth strategy.
Generally speaking, making only the safe moves leaves very little room for growth. To encourage progress, you should build a competitive spirit and the culture of constant improvement into the very core of your organization. Each month, your goals should aim just a bit higher than you thought possible. As long as you take some time to evaluate the previous results, and stay grounded in reality, this progressive way of thinking will help you avoid the dangers of complacency.
Make the organization scalable
Finally, if you want to improve your market presence, your company should have a flexible infrastructure that can easily respond to current operational needs. The ways to achieve this level of adaptability are numerous, but we will cover some of the most important measures:
- Introduce flexible work hours
- Introduce remote working
- Outsource non-vital departments of the company
- Switch to subscription-based cloud services
- Leverage different payment options for greater cash flow
We hope these six tips gave you some general idea of the policies your business can implement to actively encourage expansion and growth. The success of one company depends on a number of different factors, many of which are beyond our control. That makes adjusting the things we can actually influence an absolute imperative.