Running a business is not easy and takes up a lot of time. Furthermore, getting that business to profit each year is difficult. No matter what business you own, you always want to grow, whether you are small or large.
The issue that many people have is they try the same method as another business however, not every business plan works for another one. There are several different things to consider for your business plan to work. Nonetheless, there is a strategy for a small business which will help you become a successful company.
In the early stages of your business growth, you may find it difficult. Your workload might be too much and you don’t have enough downtime. The sad truth is that is normal and when running a small business, you will have to do a lot of the heavy lifting. Furthermore, there are many things to consider such as marketing, finances, sales and legal documents.
When looking to grow your small business, you are required to do some research. You cannot have a business and assume your way to the top. Market research is essential to understand what your competitors are doing as well as how to understand your audience.
Understanding your audience is one of the most important things you can do for a business. Find out what your customer’s needs/demands are and work on trying to fulfil those needs. Moreover, sometimes those needs can change which is where you will need to change.
Many businesses overlook research on what their competitors are doing as well. They get too caught up in competing with them when in fact, they could be successful at something they are not doing. Don’t get too big for your boots too quickly and take some inspiration from your competitors.
A sales funnel is what can level up your business as this is the customer’s journey. A customer is at the top of the funnel when on your website or coming into contact with your company. Once they have purchased something from you, they have successfully worked through the funnel. To get potential customers to the bottom of your funnel, you need to entice them with something. Maybe use a discount code for those buying a product for the first time.
Keep Your Customers
Getting new customers is great but keeping those customers is even more important. When a customer has bought a product or enquired about a service and used it, you need to think of ways to get them back. Keeping those customers is highly beneficial in the long run.
Different Ways To Improve Customer Retention
Prioritising customer service is a great way to ensure those customers come back. Speak to them in a professional but friendly manner. That way, they will return to your business because they have built a relationship with you.
A CRM system, also known as a customer relations management system, is used to help build relations with old and new customers. This system will store all the crucial details of the last sale or what they have been considering and that way, you know just what that customer wants.
Loyalty programmes are something else to consider for keeping those customers wanting more. Rewarding them when they have recommended your business to someone or they have come back to you for another product/service is something they would appreciate. Additionally, it makes them want to promote your business more.
To improve your brand’s visibility, you need to keep attracting new customers. One way to do this is to attend networking events.
We understand that networking events are not for everybody. You have to socialise with people you don’t know and that might not be for you. Nonetheless, you could build connections with companies which could benefit yours and vice versa.
Some customers will be tempted by a business because it shares the same values. For example, a customer may look for a sustainable and eco-friendly business. It is something many people are looking for now so you must reach out to them through this connection.
Build Partnerships With People Who Will Benefit You
It goes back to one of our earlier points about networking events. Building relationships with other companies can benefit you a lot. For example, if you produce full tracksuits, you should build relationships with people who own factories and own stores that sell this type of clothing. These types of relationships will not only help your business grow but will also be paying less for anything that they can give you.
It is a common strategy for many businesses and what it means is you sell the rights to an independent owner. A good example of this is McDonalds, Starbucks and Hilton hotels. Once a new franchise has opened for your business, it helps generate more revenue.
Don’t Stick To The Same Product Or Service
There are many things to do to continue the growth of your company. One of them is mixing up the products and services you offer. Offering just one product might not help retain those customers as well. Why would they return to you when they already have what you offer?
It is where you will need to conduct your research again. You will need to look into the market to see if there are other products your customers may be interested in. Going back to being a fashion-based company that sells full tracksuits, you could also offer hoodies or men’s t-shirts.
Reach New Markets
Franchising might not be possible for your business. For example, you may be just a company that sells its product/ service through a website. If this is the case for your business, you might want to consider reaching new markets.
If you are an ecommerce website that only sells a product in the United Kingdom. Consider shipping your products to the United States or Europe. It is a great way to reach out to a new market and gain new customers.
Review What Works and What Doesn’t Work
It is pointless repeating the same things if they don’t work. Every 6-12 months, review what has worked for your company and what hasn’t. If something doesn’t work then it is pointless spending more time on it as it is losing you money. For example, if your customer loyalty programme isn’t bringing back new customers, look at another way to bring those customers back. Instead of offering 10% off their next purchase, offer 25% off.