To grow, a baby needs lots of nurturing and attention. Raising a child also has lots of challenges and tasks you’d rather not deal with but must (I thought grandpas had a waiver from having to change dirty diapers, but I found last week that’s not true). However, the results of your efforts in raising a baby can bring wonderful rewards of incalculable value.
Like a baby, you must take care of your business if you want it to thrive and grow. If you do so, you can also realize excellent rewards (but these can be calculated). Unlike a baby, however, business growth potential is not dictated by genetics. Among the things that can help or hurt business growth are external forces like the market, competition, economy, and natural disasters, as well as internal variables such as capacity, management, knowledge, innovation, motivation and, of course, capital.
So, will your business baby grow? If there are ways to generate more sales, then it could grow. Here are several growth methods which are used to substantially increase revenues.
- Market Penetration – Get a bigger slice of the pie through new or better marketing, increasing customer retention, or price adjusting.
- Example: Apple’s excellent marketing and customer service.
- Market Expansion – Get a slice of a different pie by selling the same products/services to a different market by finding other uses for your products/services, finding different users, and/or entering new geographies.
- Example: Apple selling its iPhone in other countries.
- Product Expansion – Get a bigger slice of the pie through new adding new features to existing products/services or introducing new products.
- Example: Apple selling new generation iPhones.
- Diversification – Get a slice of a different pie by diversifying your products/services and markets, like a financial investment strategy. You reduce risk while increasing potential return.
- Example: Apple opening retail stores or creating and selling apps.
- Acquisition – Buy a piece of pie. Purchase another company which can help you grow quicker.
- Example: Apple purchased SRI International Artificial Intelligence Center for their product, Siri.
I use Apple as an example because they use all these methods to help grow their company to the size it is today. Now, you may not become the next Apple, however these methods can work for any company of any size.
Do you know what it will take to grow your business? Do you know if and how your business can scale? Knowledge, planning and execution are key. The Salt Lake Region Small Business Development Center works with small businesses daily to help them grow. If you’re needing or wanting to grow your business, please make an appointment to meet with one of our expert management consultants. We’re highly knowledgeable and have many years experience running, managing, growing and assisting small business. Go to our website at www.utahsbdc.org to register for assistance…at no cost to you. We also assist potential entrepreneurs to start their businesses.
Now get your baby to realize its potential.