Most companies and small and mid-size enterprises (SMEs) have an eye for business growth and sustainability. For the most part, they don’t only want to keep their business afloat and get by. The ultimate goal is to grow and sustain their business for the long term.
The COVID-19 crisis, however, has disrupted different businesses across various industries. While some ended up with a permanent closure, a few others have managed to reopen. It’s disheartening to have witnessed this turnout of events in the world of business.
But surprisingly, some resilient businesses have flourished amidst the pandemic. And now, they are looking forward to growing their business for the long term. This aspiration is especially true for small businesses.
If you’re running a small business amid the crisis and looking to grow it over time, here are some growth strategies for you:
1. Perform Market Penetration
As the name suggests, market penetration entails penetrating the market you’re currently serving. Sure, you’ve been selling products to some consumers and getting a good return on investment (ROI) from them. However, you now aim to get more sales from the same market by selling your existing products. The goal is to increase your market share against other competitors in your industry. You can do this by lowering your prices, selling bundled products, and offering discounts on larger orders. Ultimately, this strategy is one effective way to grow your business.
2. Have Market Development or Expansion
Contrary to market penetration, market development or expansion entails selling your existing products to a new market. Chances are, the market your business has long been catering to has become saturated over time. Or that the competition in your industry has become stiffer than ever. As a result, you’re struggling to attract new customers or increase your sales. Hence, there is no other way than to cover another market, sell your products to a new location, or expand your business.
3. Consider Product Development or Expansion
When penetrating the current market or finding a new market isn’t a viable solution, there’s another way to grow your business. For your growth strategy, the focus should now be on your products. This time, you may consider expanding your product lines or adding new features to your current items. From there, you can introduce your upgraded products to the same market in hopes that they will patronize your business. This growth strategy is what we call product development or expansion.
4. Employ Market Segmentation
Another approach for boosting and growing your small business is market segmentation. The idea is to create market segments and align your products with the needs of each group of consumers. However, this growth strategy requires research and due diligence. You have to categorize your market segments according to geographic, demographic, firmographic, and psychographic. From there, send marketing campaigns that work for each segment and offer products that cater to their needs.
5. Utilize Alternative Channels
Sales and marketing are a part of the overall business equation. But when it comes to these, you have to use particular channels for promoting your products and reaching out to your target market. But if they don’t work for your small business anymore, employ other platforms. That said, digital marketing is the key. This time, consider implementing search engine optimization (SEO) for online visibility, pay-per-click (PPC) advertising for website traffic, and email marketing for product promotion. Plus, don’t forget content marketing for customer engagement and social media marketing for lead generation and sales conversion.
6. Set Sustainability Strategies
If you’re looking to grow and expand your business for the long term, start implementing sustainability strategies. The idea is to sustain your business while reducing its impact on the environment. That’s where ‘going green’ comes into the picture. Some sustainability strategies include recycling, repurposing materials, reducing waste products, and using renewable energy sources. You can even go as far as partnering with green agencies and understanding what an ISO 14001 certification is for your environmental management.
At this point, you now know how to grow your business amid the COVID-19 crisis and for the long term. Consider the business growth strategies discussed above, from performing market penetration to utilizing alternative channels to setting sustainability strategies.
In addition, be sure to study your industry, understand your consumer needs, review your business objectives, set your finances, and see your current processes and resources. From there, you’ll be able to decide on what growth strategies to implement for your business. In the end, there’s nothing more fulfilling than seeing your business grow, flourish, and succeed for the long term!