Businesses don’t tend to grow naturally by themselves. Just as plants need the right nutrients and space to become sturdy trees, every business, regardless of its size, needs an environment that allows it to evolve and people who make the right decisions (nutrients) for it to grow.
How do we know what the keys to business growth are? Making decisions, especially when money and human capital are involved, is not easy. That is why with this 11-step guide, we want to make that process easier for you. With 11 Business Growth Strategies, we aim to help you make the most informed decisions to take your business to the next level. These keys range from internal company assessment to the implementation of external tactics to foster sustainable growth.
Perform a Business Diagnosis
First, we need to know what is working well and what is not in our business. All companies want to grow, but the percentage of those that succeed is low. Why? Lack of order at home.
Before embarking on any strategy, it is crucial to thoroughly understand your company’s internal situation: what capacity it currently has for further growth, what aspects need correction to achieve sustainable growth, and what is yielding results that can be leveraged. This initial step lays the groundwork for your future decisions.
An effective way to carry out a business diagnosis is by merging SWOT analysis and CAME. The first allows you to define the strengths, weaknesses, opportunities, and threats of your company. The second is a list of actions with which you will address weaknesses, face threats, maintain your strengths, and exploit opportunities.
You don’t have to search the internet for how to do this analysis. In section 2 of the Strategic Plan Template that we have built for you, you will find how to develop this diagnosis in a simple way.
Analyze Your Competition and Context
The renowned entrepreneur Elon Musk, CEO of Tesla and SpaceX, is an advocate for understanding the business environment. Musk, by assessing competition and external opportunities, has succeeded in creating disruptive products such as Tesla electric cars and reusable space launch rockets.
Market understanding is vital. How does your company position itself against direct competition, and what aspects do it need to improve to become a market leader? To do this, you need to evaluate variables such as:
- Market share
- Product/service quality
- Customer loyalty
Having a clear overview will allow you to know which aspects to focus in order to achieve the business growth you want.
In terms of contextual analysis, you must consider that every decision we make is influenced by external factors that we do not control, such as the economy and politics. For this reason, we recommend using the PESTEL analysis (which you can also find in our template for developing your 2024 strategic plan). This will enable you to define the threats and opportunities that the political, economic, social, technological, ecological, and legal aspects represent for your company.
For example, imagine that you want to increase your profit margins by 30% in 2024. However, your government has decided to increase corporate taxes by 5%. What would you do? Would you set a new goal? Would you be willing to accept a lower profit margin? The same applies to each of the mentioned aspects. If you are prepared for each of them, you can create a strategic plan that can navigate through each challenge and capitalize on every opportunity.
Clear and Achievable Business Growth Objectives
Is one of your business goals to grow your sales by 100% in 2024? Is it a target that your company can achieve? Beyond the positive attitude necessary to reach it, what really matters is whether your company is operationally capable of doing so.
Remember that you have already conducted a diagnosis of your company, an analysis of the competition and the context. Your business goals must be aligned with that reality and with the actions you have planned to execute in order to modify it in your favor.
You must start with the overall goals you want your company to achieve by the end of the year. Then, you should build specific departmental objectives that align with the overall goals. This way, all your areas will be in harmony, strengthening each aspect that corresponds to them in order to reach the general goal you set for the growth of your business. Remember to define measurable results and the Key Performance Indicators (KPIs) you plan to use to track the progress of your business objectives.
Develop a Strategic Plan
A strategic plan is the map you will build to define the path your company should take with a focus on the objectives you have in mind, and to outline the actions that will help you navigate that path and achieve those objectives.
Among the most important reasons to create a strategic plan for business growth (link to the template landing page) are:
- Clarity in objectives
- Focus and prioritization
- Efficient use of resources
- Monitoring, measurement and evaluation
A solid strategic plan is an essential tool for guiding business growth effectively. It provides direction, aligns the organization, improves decision-making, and contributes to more efficient management.
To make this process easier for you, at Max Enterprise, we have built a template for you to create your strategic plan. In it, you will find different aspects that will help you to have a better overview of your company and a tool with which you can track your objectives and actions.
Boost Employee Growht
The greatest asset of a company is its employees, but they can also be the weakest link if you are not aware that the growth of your business is imperative for the growth of your team. You cannot expect to increase your sales by 100% if you do not train your team in trending techniques that can ensure a higher percentage of sales or in technology that could get you to that goal faster and more securely.
You could hire someone with the required skills to help you achieve that goal, but for the growth and culture of your company, it is better that your employees see that you are willing to invest in them to meet your objectives. Where do you think the most committed leaders with a clearer vision of what your company is come from? From those who see the opportunity to climb professionally within it.
Larry Page and Sergey Brin, founders of Google, have acknowledged on several occasions the importance of training employees, as this fosters an environment of internal growth and constant innovation.
Empowering the skills of your employees not only benefits individuals but also directly contributes to the overall growth and success of your business. It is a strategic investment that can improve operational efficiency, innovation, talent retention, and the development of internal leaders. Furthermore, it has a direct impact on reducing errors, improving customer service, and increasing adaptability in a business environment that is constantly changing.
Prioritize Your Flagship Products
Don’t be afraid to reduce your portfolio of services or products and focus on your business’s flagship product. Eventually, this can propel you to increase cross-selling. Prioritizing and highlighting your most successful products can make your brand stand out against competitors.
Flagship products generally have a stronger demand in the market. By focusing on them, you tap into existing demand and work to meet the needs and expectations of customers who are already interested in what you offer.
This key also facilitates the construction and implementation of the marketing strategy, as you can channel your promotional and advertising efforts specifically towards those products. This makes it easier to communicate clear and compelling messages to your customers.
Other aspects that stand out when executing this strategy include:
- maximizing your profits,
- simplifying your operations,
- aiding in brand building, and
- enabling a focus on resources for innovation.
Don’t forget that strategic diversification can be valuable in some cases to reduce risks and explore new market segments, so you must be aware of emerging market opportunities and be able to adapt to changes in consumer trends.
Customer Loyalty, the Foundation of Business Growth
In the hands of your current customers lies the prestige of your company and one of the keys to its growth. If they don’t speak about your brand or don’t even remember having used it, it means that it hasn’t left an impression on them, and this will negatively impact your growth. An effective way to turn this around is by implementing customer loyalty strategies that make your customers connect with your brand.
Loyal customers tend to spend more on businesses they are satisfied with. This is because they trust the company and know they can expect an unforgettable experience that they likely want their closest contacts to experience.
Did you know that it costs between 5 and 25 times more to attract a new customer than to retain the ones you already have? This is because existing customers already know your brand and your products or services, making it easier and more cost-effective to keep them satisfied.
Implementing internal surveys, ratings, and satisfaction indexes will give you a foundation from which you can build strategies to retain your customers. Remember that by cultivating long-term relationships, your business can benefit from steady revenue, reduce its costs, and lend credibility to your brand.
Brand Awareness with SEO
If you have a weak online presence, it is urgent that you correct this mistake. In today’s digital environment, it has a high influence on the acquisition of goods and services, whether it is because users are looking for more information about a product, how it works, where to get it, or because they purchase it directly online.
Low or no presence is not solved only by opening social media or having a website. Search Engine Optimization (SEO) for search engines like Google or Microsoft improves the visibility of your website in search results. This means that it will be easier for your business to appear on the map of people who are looking for products or services related to your industry.
Another advantage of SEO strategies is that they encourage you to improve the structure of your business’ website, content, loading speed, and usability, which contributes to a more positive user experience. This not only benefits visitors, but also influences the improvement of your ranking in search engines and increases conversion rates.
A strong presence on search engines also allows you to expand your business into new markets. A well-executed SEO strategy can help you gain visibility in specific regions where you want your brand to reach, providing a solid foundation for growth.
An SEO strategy is a fundamental investment for business growth, as it enhances online visibility, attracts quality leads, builds credibility, and contributes to medium and long-term success in the digital environment.
Smart Marketing Strategies
In Max Enterprise, we have realized that no matter if you apply all the keys we provide here, without a tailored smart marketing strategy for your brand, the stagnation or failure of your business is imminent.
A smart marketing strategy is crucial to growing your business for fundamental reasons that directly impact its visibility, customer attraction, and short, medium, and long-term success.
Marketing shapes brand awareness, as constant and positive visibility on the right digital channels helps consumers to recognize and remember it, creating a lasting connection.
It also focuses on identifying and attracting potential customers for your business. It employs specific tactics to reach the target audience, thus maximizing the effectiveness of campaigns and generating high-quality leads. Additionally, it helps your brand adapt to the changing consumption habits of your market niche.
Marketing is not just about selling; it’s also about building strong relationships with customers through social media engagement, comments, and other communication channels. This is crucial in a saturated market, where differentiation can be the key to attracting customers over the competition.
Don’t have a marketing department or the right budget to build one? We can be your marketing department. Check out our plans and services (link to plans and services); we assure you they fit your budget.
Local Brand Awareaness
It is advisable to become a local hero before becoming an international hero. In other words, growing locally provides your company with a comprehensive understanding of market dynamics, consumer preferences, and helps you perfect your product.
Before expanding globally, Alibaba, under the leadership of Jack Ma, conquered the local Chinese market. This allowed it to deeply understand local needs and adapt strategically.
A strong and locally recognized brand provides essential insights to adjust and tailor your strategies before entering international markets, which may have unique conditions and challenges.
Conquering the local market can generate revenue and financial resources that are crucial for funding international expansion. A solid financial foundation provides stability and the ability to tackle financial challenges associated with global expansion.
In summary, conquering a local market first provides a solid and well-grounded platform for success in international markets. It’s a strategic approach that allows companies to learn, adjust, and optimize before facing more complex challenges.
Postscript: Marketing and SEO can boost your local growth.
Provide a Unique Customer Experience
In a crowded marketplace, where competition is intense and products or services are often similar, a unique customer experience can set a company apart from its competitors. Consumers are increasingly looking for not just high-quality products, but also memorable experiences that add value to them.
Have you noticed that the marketing campaigns of brands like Red Bull, Rolex, Coca-Cola, and other major companies don’t focus on selling their products or services directly? They understand that to attract more customers and boost sales, the key is not the product itself, but the experience or entertainment associated with it.
That’s not to say that you should neglect your product. On the contrary, it should be so good that after the experience you give the customer, they can say it was unforgettable not only because you connected with them, but also because the product is high-quality.
When we talk about experience or entertainment, we mean that you should connect with the customer’s emotions and feelings, not just their logic. Logic only plays a role at the moment of the decision to purchase the product, and if, in addition to the reasons the customer relies on, you can add that your brand also connected with them on a deeper level, you can say that you’ve won a significant part of the journey.
It’s not just about selling a product; it’s about selling an experience that differentiates your company in the market and builds customer loyalty.
Providing a unique experience is not only a strategic differentiator, but it’s also a long-term investment in building strong relationships with customers and establishing your brand in the market. In an increasingly customer-centric business world, the unique experience has become a key ingredient for success.
With these 11 business growth strategies, your business will be equipped not only to expand but also to stand out in a competitive market. By following these steps in a methodical and strategic way, you will be paving the way for sustainable growth and lasting success in today’s business world.
Do you need a team to apply these business growth keys to your business? Max Enterprise was created to catapult brands. At the heart of our success is your business success.