Your Business is like a plant, where the only healthy way forward is to grow. Entrepreneurial growth focuses on that early seed stage where you’re still always reaching for more sunlight and struggling to break free of the soil and leaf out above the competition. The good news is that while your business is our metaphorical plant, you can be the the gardener who prepares the soil, tends to the leaves, waters, and makes it a secure place to grow. All of those elements are strategies for entrepreneurial growth.
Common Growth strategies Marked in small scale business are:-
- Market Penetration
- Market Expansion
- Product Expansion
(Increase your Market share) – One of the growth strategies reported in business is market penetration. A small company uses a market penetration strategy when it agrees to market existing products within the same market. Increasing market share is the only way of growing through existing products and markets. Building more market share, also known as market penetration, is one of the best business growth strategies for small businesses.
Market share is the share of unit and dollar sales a company acquires within a certain market when compared to all other competitors. The best way to increase the market share is by lowering the prices of the commodities.
(Attract new customers and retain existing ones) – Market expansion is another remarkable growth strategy, which is often referred to as market development that involves selling current products in a new market. You might be a pro at retaining existing customers, but what about winning new ones? If you don’t have a market development strategy designed to reach new customers, you could be missing out on a valuable market. This is especially important if sales of existing products have stagnated or if you’re looking to expand your market reach to a new geography or target demographic.
(Refresh or renew your offerings)- A small scale company can expand its line of products or add new features to increase sales and profits. When small companies use a product expansion technique, it is also referred as product development.
Even if your product line has been circulating in the market for months or even years, you can always benefit from a product review.
Diversification has a role in business growth plans. We refer to a business offering new products in new markets as diversifying. This kind of plan is very vulnerable to risk and failure.
A small business carefully considers the plan while implementing a diversification expansion strategy. To determine whether customers in the new market may possibly enjoy and purchase the new products, marketing research is crucial.
Acquisition of other businesses is a component of growth strategies and other business expansion methods. A company acquires another business to broaden its capabilities. This kind of approach is used by a small business to expand its product line and reach new consumers.
Although a diversification plan is riskier than an acquisition growth strategy because in this scenario the items and market are already authorized, it is still quite dangerous. Because of the large investment needed to carry out an acquisition strategy, a corporation must fully understand exactly what it wants to accomplish.