Whether you’re trying to reach $100,000, $250,000, $1 million, or $5 million in revenue, getting to the next level in your business opens up a wealth of opportunities. Getting ahead of day-to-day details and accelerating to the next milestone in revenue is exciting — once you have a sound growth strategy in place!
Growth strategies are unique to every business. Where your growth comes from, the amount of risk you’re willing to take, and the available resources all play an important role in the selection of the growth strategy that is the best fit for your business.
As you consider the right options for your business, here are four of the most common growth strategies to keep in mind:
1. Sell more products to your current clients. This is called market penetration and carries the least amount of risk. In fact, in recent studies, more than 50% of small business entrepreneurs plan to use this strategy to increase revenues.
2. Expand your products or services into new markets. This is referred to as market development and is one of the most common growth strategies. Approximately 21% of small business owners expand their product/service as their growth strategy of choice.
3. Promote new products for existing markets. Commonly referred to as product development, this is one of the most comfortable growth strategies for small business owners. Albeit the most convenient strategies to choose from, don’t get too comfortable! Developing new products, even when targeting a familiar market, may require new skills and systems for success.
4. Develop new products for new markets. This is one of the riskier growth strategies given the nature of an unproven marketplace. Implementing a diversification strategy, however, may well be worth the risk if innovation is a key value for your small business.
Every business, regardless of size, needs a growth strategy. As you ponder your choices, consider your willingness to risk, resources available, business capability and capacity, strategic insight into your market…and make your strategy one you can grow on.