Developing Your Business Growth Strategy to Take Your Business to New Heights
Although many businesses begin small and remain in the comfortable niches in which they find themselves soon after startup, others manage to take the steps of continual growth necessary to burst out into long-term success. The key is in developing strategies that stimulate and maintain business growth. Pursue these strategies methodically, step by step, to help your company thrive.
Intensive Growth Strategies
The most basic intensive growth strategies are less risky but also stimulate growth that is more controlled and less rapid. For instance, market penetration means finding methods of distributing more of your product or service to current customers. This may involve finding new ways to use your products or selling them in larger quantities. With market development, you expand into new markets with your existing goods or services. Additionally, you may find alternative channels for your products such as online marketing outlets.
The next step is to use product development to create new products or services for your existing customers. It involves less risk to sell to your current customer base than to concurrently develop new products and seek out new customers. However, sometimes the demands of growth stipulate that your new products also require a new customer base. This sometimes initiates a period of explosive business growth.
Integrative Growth Strategies
Integrative growth strategies, which involve merger with or acquisition of other companies, are far more risky but carry the potential of dynamic business growth. An example of backward integrative growth might be purchasing an important business supplier so that you can custom-build needed products for your company at lower cost. Forward integrative growth involves acquiring businesses that distribute your products or services. In horizontal integrative growth, you buy businesses competing in the same field, which not only eliminates competition but also adds to your market share.
For more advice on strategies for business growth, get in touch with Revap Group Capital.