New Business Growth Strategy – A concrete growth strategy is more than just a marketing strategy, it is an important part of your business machine. Without one, you’re subject to a fickle user base and market volatility. So, how are you going to grow? If you’re unsure about the steps it takes to develop an effective growth strategy, we’ve got you covered. Business Growth Business growth is when a business reaches a point where it expands and needs more ways to generate profits. This happens when a company increases revenue, produces more products or services, or expands its customer base. For most businesses, growth is the main goal. With this in mind, business decisions often depend on contributing to the company’s continued growth and overall success. There are several ways to increase growth, which we will explain in detail below. Types of Business Growth As a business owner, there are many ways you can grow. Business growth can be divided into the following categories: 1. Organic growth Organic growth is when a firm expands through its own operations using its own internal resources. This is in stark contrast to finding external sources of fuel growth. An example of organic growth is increasing production capacity so you can produce more in less time, increasing sales. The advantage of using organic growth is that it relies on self-sufficiency and avoids borrowing. Additionally, increased revenue from organic growth can help fund more strategic growth strategies later on. We explain below. 2. Strategic Growth Developing programs that will help your business grow in the long term. An example of strategic growth is launching a new product or developing a market strategy for a new audience. Apart from organic growth, these initiatives often require significant resources and funding. Businesses often take an organic approach first, hoping that their efforts will generate enough capital to invest in future strategic growth initiatives. 3. Internal Internal growth strategies aim to optimize internal business processes to increase revenue. Similar to organic growth, this strategy relies on the company using its own internal resources. An organic growth strategy is the use of existing resources to the greatest possible advantage. An example of organic growth is cutting wasteful costs and operating leaner by automating some of its functions rather than hiring more employees. Internal growth is more challenging because it forces companies to think about how to improve processes and become more efficient, rather than focusing on external factors such as entering new markets to facilitate growth. 4. Mergers, Partnerships, and Acquisitions While riskier than other forms of growth, mergers, partnerships, and acquisitions are highly profitable. Quantitative strengths and well-executed mergers, partnerships, or acquisitions can help your business penetrate new markets, expand your customer base, or increase the products and services you offer. Business Growth Strategies Growth strategies allow companies to expand their business. Growth can be achieved through methods such as adding new locations, investing in customer acquisition, or expanding product lines. A firm’s industry and target market may influence the choice of growth strategy. Develop a strategy, consider available options and incorporate some into your business plan. Depending on the type of business you’re building, your growth strategy may include: Adding new locations Investing in customer acquisition Franchise opportunities Product line expansion Selling products online across multiple platforms Your specific industry and target market will influence your decision, but it’s almost always new customer acquisition that plays a significant role. It is universally accepted that Not sure how this works for your business? Here are some actionable strategies for growth. How to Successfully Grow a Company Using a Growth Strategy Template Choose your target growth area. Conduct market and industry research. Set growth goals. Plan your activity. Identify your growth tools and needs. Execute your plan. 1. Use a growth strategy template [free tool]. Image Source Don’t start implementing your growth strategy without planning and documenting the steps involved. We recommend downloading this free growth strategy template and following some of the included tips to chart your company’s intended course of growth. 2. Choose your target growth area. It’s great that you want to grow your business, but what exactly do you want to grow? Your business growth plan should focus on specific growth areas. Common priorities for strategic growth planning include: Increase in headcount Expansion of existing office, retail and/or warehouse space Addition of new locations or business branches Expansion into new regions, locations, cities or countries Addition of new products and/or services Expanding. Where to buy (ie selling in new stores or opening an online store) Revenue and/or profit growth Customer base growth and/or customer acquisition rate It makes sense that your growth plan may include more than one of the initiatives described above – great growth doesn’t happen in a vacuum. For example, increasing your unit sales can lead to revenue growth — and an increase in locations and headcount to support increased sales. 3. Conduct market and industry research. Once you have chosen what you want to grow in, you need to justify why you want to grow in this field (if there is an opportunity for growth). Researching the state of your industry is the best way to determine whether your desired growth is necessary and possible. Examples might include conducting surveys and focus groups with existing and potential customers, or conducting research into existing industry research. The knowledge and facts you uncover in this phase will shape the project’s expectations and growth goals, better determining timelines, budgets, and end goals. This brings us to step four… 4. Set growth goals. Once you’ve figured out what you’re growing and why, the next step is to determine how much you’re growing. These goals should be based on your ultimate aspirations for the ideal state of the organization, but they should also be achievable and realistic – which is why setting goals based on industry research is so valuable. Finally, take steps to quantify your goals against metrics and timelines. A goal of “30% consecutive sales growth over the next three years” is much clearer than “increase sales.” 5. Plan your activity. Next, explain how you will achieve your growth goals through a detailed growth strategy. Again – we recommend that you write a detailed growth strategy plan to gain the understanding and support of your team. Download this template An action plan should include action items, deadlines, a responsible team or person, and a list of resources to achieve growth goals. 6. Identify your growth tools and needs. The last step before implementing your plan is to identify any needs your team needs during the process. These specific resources will help you achieve your growth goals faster and more accurately. Examples may include: Funding: An organization may require a capital investment or internal budget allocation to complete a project. Tools and software: Consider what technical resources are needed to accelerate the growth process and/or gain insight. Services: Growth can be enhanced with the help of a consultant, designer or planner in a particular field. 7. Execute your plan. With all the planning, resource allocation and goal setting done, you can now implement your company’s growth plan and deliver business results. During this time, keep stakeholders accountable, keep communication open, and compare your initial results with your projected growth goals to see if your projected results are still achievable or if anything needs to be adjusted. Your growth plan and the strategies you use will ultimately be specific to your business, but there are some general strategies you can implement to get started. Featured Resource Free Growth Strategy Template Fill out this form to access your template Companies can implement various growth strategies to grow their business and its revenue. Examples of growth strategies: Examples of growth strategies Viral loops Milestone referrals Word of mouth “When they zigzag, we zigzag” approach Face-to-face outreach Market penetration Market development Product development Growth alliances Acquisitions Organic growth Social media Superior customer service 1. Viral Loops Some Growth The strategies are designed to be completely self-sustaining. They need an initial push, but in the end, they rely heavily on the enthusiasm of their users to keep them going. One strategy that fits the bill is viral looping. The basic principle of the viral loop is simple: someone tries your product. They get valuable inspiration to share with others. They agree and share with their network. New users sign up, see rewards and share with their network. Repeat. For example, a cloud storage company that is trying to start up might offer users