08 Jan 2015
Owning a successful business involves much more than simply making sure it is able to complete day to day operations. At some point, a successful business will need to grow, so that it can increase its profits or take the next step forward. Although there may be a few companies out there who have managed to survive by staying the same as they were at the beginning, the majority of companies that thrive do grow and change over the years.
If your company is beginning to stagnate, that is more likely than not a sign that it’s time to take the next step and bring your business to the next level. Some ways of growing a business take longer than others and require more strategic planning. Other steps will get you to growth quicker.
One way to literally grow your business pretty quickly is to expand it. An expansion can take several forms. You can open a new office on the other side of town, open a branch in a new state, or add on to your existing work space. Expanding can also mean taking on new staff so that you can handle an increase in customers or clients.
There are a few things you want to be aware of before your company expands. The need for the expansion has to be there. If people have been using your services less and less over the past years or months, increasing those services might not make sense. New Direction Capital can help you examine your company’s needs and develop a strategic plan for expanding.
The more you sell, the more revenue your business will bring in, and the better position it will be in for growth. You can increase the sales your company makes in several ways. First, you can focus more on selling the products and services you currently offer. Think of ways to make those products or services more attractive to customers or of ways to reach a new market or demographic with the same product or service. If your current client base consists mainly of other businesses, consider if there is a way to sell your services or products to a client base made up of consumers.
Another way to increase sales and to grow your business is to offer more items or services for sale. Think of complementary products that can be packaged together. If one of your bestselling products is a broom, for example, consider also selling a dust pan, as people in the market for a broom are often also in the market for a dust pan. Make sure customers are aware of the benefits offered by the new products or services your business is offering. Highlight how a new service will help them more than simply using the original service offered.
Sometimes, the best way to grow your business is to join forces with a company that offers a similar or complementary product or service. The ports of Tacoma, WA and Seattle, WA provide an illustration of the benefits of teaming up for growth. The two ports had been fierce competitors for decades, fighting over the same market share. At the same time the two ports were competing with each other, they were also competing against a port in neighboring British Columbia.
Joining forces means that both ports benefit, whether a shipping company decides to use Tacoma or Seattle. Tacoma doesn’t have to worry about losing customers to Seattle and Seattle doesn’t have to worry if a company decides to use Tacoma, as the companies are aligned. The partnership has also helped reduce costs for the two ports. Instead of each working individually to make improvements, the two are planning on working together to make improvements that make the most sense from a financial and investment standpoint.
Growth is a must, but too much, too quickly or not enough, too slowly can negatively impact your business. To learn more about your options for growth and whether it’s the right step for your company now, or how you can prepare for it in the near future, contact New Direction Capital today.
What are your thoughts on business growth? Do you have other suggestions? Feel free to comment below!