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Best way to grow a business?
#business
Give me some advice please
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Matthew’s Answer
Mayatchen - there are targeted ways to grow a business. I will assume that you are asking about growing profit first. The easiest thing to do is to raise prices. If you can maintain the same amount of business at a higher price all of the increase in price goes directly to profit. However, be careful not to raise prices too high or too quickly.
The second thing to do is to get current customers to buy more each time they buy, increase the amount, or to buy more frequently, increase the frequency of the sale.
The third thing is if you have enough product or service to deliver and that your business' growth, like most businesses growth, is limited because you don't have enough customers, you have to go through a process to find out why? Your solution to attracting more customers is usually some combination of improving your business process to provide your product or service "better, faster, or cheaper" than your competitors.
What you want to do is "look through the eyes" of your customers to see how they use your product or service. Find those things that they don't like about it or make it hard to use and eliminate them.
These steps are field tested in businesses around the world. Hopefully you will find them helpful to you.
The second thing to do is to get current customers to buy more each time they buy, increase the amount, or to buy more frequently, increase the frequency of the sale.
The third thing is if you have enough product or service to deliver and that your business' growth, like most businesses growth, is limited because you don't have enough customers, you have to go through a process to find out why? Your solution to attracting more customers is usually some combination of improving your business process to provide your product or service "better, faster, or cheaper" than your competitors.
What you want to do is "look through the eyes" of your customers to see how they use your product or service. Find those things that they don't like about it or make it hard to use and eliminate them.
These steps are field tested in businesses around the world. Hopefully you will find them helpful to you.
Great answer Mathew!
Vinit Ghia
Updated
Hammad’s Answer
Hi Mayatchen
I would suggest viewing:
THE ANSOFF MODEL
This is a strategic tool used during the development of a growth strategy. It is a good basis for considering the strategic development of your company.
The Ansoff growth matrix is comprised of two axes
Products:
Which products do you currently offer, and which new products would you like to offer in the future?
The market:
Which markets do you currently serve, and which markets would you like to serve in the future?
THE FOUR GROWTH STRATEGIES
Four types of growth strategies are proposed on this basis. The four main growth strategies are as follows:
MARKET PENETRATION
The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share. To do this, you can attract customers away from your competitors and/or make sure that your own customers buy your existing products or services more often. This can be accomplished by a price decrease, an increase in promotion and distribution support; the acquisition of a rival in the same market or modest product refinements.
MARKET DEVELOPMENT
This means increasing sales of existing products or services on previously unexplored markets. Market expansion involves an analysis of the way in which a company's existing offer can be sold on new markets, or how to grow the existing market. This can be accomplished by different customer segments ; industrial buyers for a good that was previously sold only to the households; New areas or regions about of the country ; Foreign markets
PRODUCT DEVELOPMENT
The objective is to launch new products or services on existing markets. Product development may be used to extend the offer proposed to current customers with the aim of increasing their turnover. These products may be obtained by: Investment in research and development of additional products; Acquisition of rights to produce someone else's product; Buying in the product and "branding" it; Joint development with ownership of another company who need access to the firm's distribution channels or brands.
DIVERSIFICATION
This means launching new products or services on previously unexplored markets. Diversification is the riskiest strategy. It involves the marketing, by the company, of completely new products and services on a completely unknown market.
Hope this helps.
Hammad Saeed
I would suggest viewing:
THE ANSOFF MODEL
This is a strategic tool used during the development of a growth strategy. It is a good basis for considering the strategic development of your company.
The Ansoff growth matrix is comprised of two axes
Products:
Which products do you currently offer, and which new products would you like to offer in the future?
The market:
Which markets do you currently serve, and which markets would you like to serve in the future?
THE FOUR GROWTH STRATEGIES
Four types of growth strategies are proposed on this basis. The four main growth strategies are as follows:
MARKET PENETRATION
The aim of this strategy is to increase sales of existing products or services on existing markets, and thus to increase your market share. To do this, you can attract customers away from your competitors and/or make sure that your own customers buy your existing products or services more often. This can be accomplished by a price decrease, an increase in promotion and distribution support; the acquisition of a rival in the same market or modest product refinements.
MARKET DEVELOPMENT
This means increasing sales of existing products or services on previously unexplored markets. Market expansion involves an analysis of the way in which a company's existing offer can be sold on new markets, or how to grow the existing market. This can be accomplished by different customer segments ; industrial buyers for a good that was previously sold only to the households; New areas or regions about of the country ; Foreign markets
PRODUCT DEVELOPMENT
The objective is to launch new products or services on existing markets. Product development may be used to extend the offer proposed to current customers with the aim of increasing their turnover. These products may be obtained by: Investment in research and development of additional products; Acquisition of rights to produce someone else's product; Buying in the product and "branding" it; Joint development with ownership of another company who need access to the firm's distribution channels or brands.
DIVERSIFICATION
This means launching new products or services on previously unexplored markets. Diversification is the riskiest strategy. It involves the marketing, by the company, of completely new products and services on a completely unknown market.
Hope this helps.
Hammad Saeed
Updated
Rahila’s Answer
One way to grow your business is to increase your customer base. You may want to consider doing more marketing or increasing your marketing. Without knowing your business, it's hard to give specifics. Social media and advertising are ways to get the word out about your business. Matthew mentioned getting repeat business from existing clients; you might consider a subscription model if that's appropriate for your business. You might build loyalty and repeat business through email marketing.