Starting a small business is exciting. However, growing it can be challenging. According to studies, 45% of small businesses do not make it past their first five years.
To gain a competitive advantage in the fierce market, you need to have a detailed business growth strategy.
Here are a few tips that may help you.
1. Develop Strategic Partnerships
The partnership should benefit both sides. The perks include extra resources in terms of industry experience, technology, innovation, greater reach, and skills.
For example, you can partner to create a unique product or improve services. Or, team up with another company to host an event that promotes both companies.
Choose a non-competitive company complementary to yours. That way, you make sure their target audience will be interested in your products and services.
Sure, when fostering partnerships, consult your legal advisor. Make sure they develop and review the legal contract that will protect your company in the event of unpredictable issues.
2. Protect your Company
Small business owners often neglect the importance of business insurance. It protects your company against losses caused by natural disasters, liabilities, fires, etc.
There are several business insurance types to consider.
For starters, invest in general liability insurance that covers your legal costs in case of workplace accidents, injuries, and claims of negligence.
3. Focus on Customer Retention
Acquiring new customers is not enough to succeed in a hypercompetitive marketplace. You need to encourage customer loyalty and retain your current customers. According to research studies, a 5% growth in customer retention can increase your profits by 25% to 95%.
One of the easiest ways to build trust with your customers is to create a detailed email list. Use attention-grabbing lead magnets, such as discounts, new product trials, helpful content, gated articles, etc. Provide them for free in exchange for users’ email addresses. Then, use their contact information to nurture relationships. Keep them posted about your latest products, sales, and events.
You can also start a loyalty program for your consumers. It will boost your customers’ trust, increase sales, and inspire them to purchase from you again.
Finally, ask your customers for feedback via online reviews or surveys. That way, you can understand their needs and optimize your products and services.
4. Narrow Down your Audiences
Small businesses struggle in large, hypercompetitive markets since they cannot compete with corporations. If you are spreading your business too wide, narrowing down your reach.
That is where market segmentation can help you. That process includes breaking down a large market into smaller groups based on customers’ demographic and psychographic data. For example, you can segment your market by consumers’ age, gender, location, family status, income, shopping habits, content interests, past purchases, etc.
Once you perform market segmentation, focus on those consumer groups interested in your products/services the most.
That way, you can tailor products and services to a specific audience. Most importantly, you can create highly targeted marketing campaigns.
5. Diversify your Marketing Channels
The internet has created countless alternative marketing channels. Most of them are inexpensive and, yet, they generate high ROI.
For starters, have a solid website. Keep it SEO friendly so that audiences can find it when looking for companies in your niche.
A website is also a chance to build trust with your audiences. Share your value proposition there and have a detailed About page. Most importantly, share social proof, such as product reviews or customer testimonials.
Next, use social networks to build an engaged community. Create authentic content for these channels, such as inspirational posts, high-quality photos, video guides, or memes. Most importantly, use them to communicate with your audiences in a more natural environment.
Finally, consider combining online and offline channels. For instance, if your company is online-only, why not set up a pop-up shop and invite your online customers to come and meet you? On the other hand, local businesses could insert QR codes into printed materials, such as flyers or direct mail, to promote their online brand.
Marketing diversification helps you keep audiences engaged across their preferred online and offline channels.
Over to you
Growing a small business takes patience, time, and dedication. Most importantly, have a detailed strategy to back you up. Those are just some key small business growth tips that can help you lay the groundwork for company expansion.
Which small business growth tactics do you use? We are listening !
About the author :
Eve Anderson is a marketing specialist turned blogger. Interested in sports and exciting travel destinations. Love to share content that can inform people.