Step 11: Building and Expanding Your Business
Congratulations on completing all the necessary steps to establish your business! Now, it’s time to focus on growing and scaling up your enterprise. The following are crucial areas to consider:
Identifying Growth Opportunities
Acclaimed business manager Igor Ansoff created four recognized methods for improving business strategy, product, or service offering. These include:
1. Market Penetration- Improving sales figures by digging into your existing customer base
For example, a restaurant introduces special discount offers for local customers.
2. Market Development- Improving sales figures by advertising to a new customer market
For example, a small clothing store opens a location in another region targeting young audiences.
3. Product Development- Developing a new product or enhancing an existing design to bring to the market
A software brand can upgrade its app to be compatible with Android phones.
4. Diversification- Expanding into a new market by offering an alternative revenue stream
A local cake shop decides to sell branded aprons.
Building Your Network
Partnerships play a vital role in the success of every new business. They can help find like-minded businesses and referrals that accelerate growth, providing opportunities in areas like:
1. Knowledge-sharing- Established companies can advise or give feedback on your ideas
2. Logistics- Company partners might be able to give you access to professional equipment and tools.
3. Hiring- You’ll meet other qualified professionals in your industry who may be right for a future role.
Networking with others in your industry will help build brand awareness, which could also grab the attention of potential investors.
Managing Customer Relationships
Strong client or customer relationships are the lifeblood of any business. Startups need to stay on top of changing customer demands to ensure they feel engaged and looked after by the company and its employees. Investing in customer relationship management (CRM) tools and tricks is the straightest path to developing an effective customer service strategy. Small business CRM software assists with email marketing and outreach, storing customer information, coordinating campaigns, complaints and enquiries, customer data and insight, and lead conversion into sales.
Streamlining Your Operations
To minimize costs and maximize profits, identify areas where you can save resources. Look for processes that a business can automate, like completing payroll, which helps to free up management time. Simplify low-level skills that are taking up management time, keeping them in line with the employees’ skills to increase efficiency. Fix or eradicate inefficient processes. For example, poor file storage might leave staff members unaware that their work was already done recently or in the past.
Tips for Scaling Your Business Operations:
1. Develop an action plan as the first step
2. Keep goals SMART- Specific, Measurable, Achievable, Realistic, and Time-bound
3. Stay on top of market trends
4. Be slow to hire and don’t rush into big decisions
5. Know when to delegate
6. Build a strong management team
7. Connect with customers
8. Don’t forget profitability
