In this competitive world, running a small business can be a way too complex than raising a 2-year-old toddler. It is a combination of good understanding of market demand and market size and having repeated operations to support that market to have a flexible and secure business.
There are various entrepreneurs who have wonderful ideas but yet unable to scale their startups or small businesses to grow. Taking references from the successful entrepreneurs around the globe, VironIT has made a list of 8 key principles that you need to know in order to grow your small business.
Understanding these key principles to grow your business isn’t any one-time go instead these are requirements for your business’s survival and economic well-being in this tough competitive market. Of course, it takes more than these 8 key principles to be successful in business but it isn’t bad to start with these principles your journey toward growing your business.
- Penetrate your current market
Not just you, but whenever any entrepreneur thinks about growing their business then the first thing that would instantly come to mind is attracting new customers. But what about your present customers that you already have? Never thought about that? Your current customers are the best for enhancing your sales numbers. Because it is easier to convince people who are already impressed with your products and services than trying to impress a whole new customer who never bought any product or service of yours.
- Ask for a referral
In the above principle, I did not mean to say that you cannot attract new customers or target new customers is a bad thing. But in order to attract a new customer, one of the simplest ways to achieve is asking your existing customer for referrals.
Just because you have good products and customers along with an amazing customer service, it doesn’t mean that your customers are referring your products and services to their friends and family or passing the word about your business. assuming that wouldn’t increase your revenue or sales. so practice asking for referrals. ask your customers if they are satisfied with your products or services and if they are indeed satisfied then ask them if he or she knows anyone else would be interested in trying their products and services.
- improve your existing products and services
Discovering and promoting new utilizations for your products and services is an excellent way to not only attract new customers but it will also help retain existing customers as well. For example, if petroleum jelly had only one kind of use then people wouldn’t be buying it so often.
- Extend your market Reach
There are various ways to grow your business by making your products and services available to a new set of customers. One of the clear ways is to open a store in new locations. It’s not that you have to open a physical store it can also be virtual such as a website. The other way to extend your market reach is by advertising. As soon as you identify a new market pool, you might consider advertising a select media which targets that specific customer pool. If your new customer pool consists of millennials then you may want to utilize social media networking platforms for the best advertisement.
- Take participation in trade shows
Taking participation in trade shows is an excellent way to grow your small business. Because trade shows tend to attract too many people’s attention who are already interested in the similar kind of products and services that you offer. Such kind of customers can drastically enhance your bottom line. Here that trade is to choose the right trade show in which you can take participation and seek the right match for your products and services.
- Become a head for a niche market
Instead of trying to catch a small fish in an ocean, you need to try catching a big fish in the small pond. This is not just a proverb or an analogy, this strategy applies same for growing your business operations. Assume the niche market as a pond and now narrow it by defining a group of customers. Think of them as a subset whose requirements are not properly fulfilled by your competitors and focus on meeting those unmet requirements.
- Contain your expenses
Remember that when we were talking about growing your business, we meant about growing your business’s bottom line. The little or very much differentiation between the pre-tax and post-tax numbers can indeed make this an effective growth strategy. There are mainly two ways in which you can contain your expenses one is by liquidating your not so worth products and the other is enhancing your inventory turnover.
- Diversify your products and services
The similarity is an essential principle to a successful growth via diversification. You have to concentrate on the related requirements of your already built market or on market segments with similar types of requirements and characteristics.
Time to grow
Well, not all of them, but the aforementioned are some of the key principles that you need to follow in order to grow your business. implement one by one instead of trying all at once. Of course, you will not certainly experience growth in a month or two but if you keep implementing it you will definitely see progress and will successfully transform your business into the way you want it to be.