Statistics show that approximately 80% of small businesses fail within the first year of inception. Many of these businesses fail due to poor growth strategies, lack of funding, or unsuccessful marketing initiatives. But some maintain steady growth over the years and end up being successful.
Businesses that become successful use 4 major growth strategies to succeed. They steadily increase their market share and outperform the competition. Here are the top four growth strategies businesses use to succeed.
1. Channel Diversification
We live in a digital era where businesses can use many marketing channels to reach potential customers. Social media is a great place to start. With more than 4.62 billion social media users and over 20 social media sites, there’s no better way to reach your audience other than diversifying your channels.
You don’t have to join all the platforms. All you need is to know where your ideal customers hang out and focus on them. And you don’t have to strictly focus on digital advertising. You can also try out old-fashioned billboards and print media.
If you own a brick-and-mortar business, market it both online and offline. Leverage email marketing, social media marketing, digital ads, and offline marketing. There’s no fast and hard rule to channel diversification.
2. Market Development
Market development means introducing existing products and services to an untapped market. You can achieve this by targeting specific demographics and new industries in other geographical locations. Identify established businesses with vast industry networks within your niche and ask for partnerships.
Market development is a low-risk approach yet very effective if your products offer value to the new market. Pay close attention to cultural differences and local business regulations before approaching any brand from a different country for a partnership.
3. Product Diversification and Expansion
Product diversification means either creating new products or improving existing ones by adding new features. It’s a clever way to attract new audiences and open doors for more people to check out your inventory if they haven’t.
Loan Center, a company that issues car title loans, has said that business diversification has helped it grow immensely. Instead of simply issuing car title loans, the company issues motorcycle loans and RV title loans. When diversifying, ensure the new product or service aligns with the existing ones.
4. Market Disruption
Market disruption is an effective strategy that can help you win over organic customers if you do it right. You don’t have to copy successful legacy brands to succeed in business. Create a new product or service that shatters the status quo.
However, it’s worth mentioning that disrupting an established market is not an easy task. Innovating a product that completely changes existing market dynamics takes a lot of creativity. First, you need to understand the market and decide how you want to disrupt it.
Study consumer preferences and behaviors before launching a disruptive campaign. The goal is to do things differently while being relevant. You can also try new-market disruption. Create a new segment in an existing market to connect with underserved or unserved customers
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