With only half of new businesses hitting the 5-year mark and just one-third celebrating the 10-year milestone, you must find a way to ensure your business is successful and sustainable. And the best way to do this is to develop and implement an effective growth strategy that delivers excellent results immediately. An effective growth strategy is a solid and thoughtful plan to grow your business in a clearly-defined direction. Here are 7 key steps to a growth strategy that works immediately.
1. Hire the Right People
Human capital is a fundamental component of any effective growth strategy. You must have the right players on the table so you can successfully create and execute strategies. In addition to academic qualifications and significant industry experience, the people that you add to your team must possess traits that are in line with your business’s culture. They must have a clear understanding of the market. They must also know how to develop and execute a compelling growth strategy. If you’d like to run the extra mile and hire various talents worldwide, you can outsource such tasks to a Professional Employer Organization (PEO), such as New Horizons Global Partners, or other providers, which can recruit, hire, and manage your workforce internationally without you having to set up a legal entity.
2. Determine Value Proposition
Customers can buy from anyone they want. But why should they buy from you? Or why should they choose your products and not your competitors? Come up with your value proposition. Is your business an authority in a specific market space? Does it have a solid reputation? Or is it known for creating a favorable environment for innovation? You must identify your key differentiators and then take steps to know your customers.
3. Know Your Customers
Knowing your customers is an important step to developing a successful growth strategy. As you’re trying to understand your customers, you may discover they aren’t homogenous. You may attract several diverse groups with varying needs, purchase habits, and expectations. Be sure to take that fact into account in your growth strategy.
4. Segment Your Customers
To get started, place your customers into different groups based on their level of income, location, product consumption, and estimated lifetime value. Once you have segmented your customers, you can now focus on how you’re going to get your products and/or services in front of them. Choose a tactic that works for each group.
5. Use Podcasting
You can use the influence of podcasting to capture the attention of customers. A lot of people nowadays do have time to simply stop and read or research for something. What they are doing is listening to podcasts that enable them to get that information while on the run. This type of marketing can provide all your current and potential customers with relevant information about your business and what it offers, be sure to use a guide that helps you start.
6. Identify and Measure Your Key Success Metrics
How will you determine whether your growth strategy is effective? The answer is by pairing your growth strategy with key success metrics and then measuring those metrics periodically. Remember you’ll require effective analytical tools to collate and analyze the data. Some of the key success metrics include customer acquisition cost, customer retention rate, and gross margins.
7. Evaluate Your Revenue Streams
How will your business make money? Assess your current products or billable services to determine which business model will work. You may focus solely on selling subscriptions or even bill on a per-use basis. Assuming you have already segmented your customers into groups, you may opt to provide different pricing levels to different customers. You may also set a print on demand business and monetize it on your Instagram account.
8. Compare Your Growth Strategy with Your Competitors
You must keep track of your competitors. You must also continuously compare your growth strategy with those of your competition. How does your competitors’ growth strategy look like? How do their key success metrics measure against yours? By constantly comparing your strategy with those of different industry players, you can easily determine what’s working and what you need to adjust. You can also draw inspiration on the best way to position your product or service. The objective here is to gain new insights to help you sharpen your growth strategy without duplicating what your competitors are doing.
There’s no magic bullet to a growth strategy that delivers excellent results right away. You need to plan thoughtfully and develop a strategy that resonates with your business. Furthermore, a technologically driven world and volatile customer preference are key determinants of today’s market, thus, make sure to embrace the change to drive innovation for your business. Ensure your strategy is flexible and open to modifications in the future.
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