Once your small business gets past the startup phase, the next logical step is growth. Many people say that it’s harder to grow a business than to start one. It’s important to have a growth strategy that works for your business.
Find an Investor
If your small business has a good track record but its growth is being constrained by a lack of capital, it may be time to find an investor. Sometimes, investors can contribute more than just funding. They can provide an impartial pair of eyes, coupled with experience and expertise that can take your small business to the next level.
Move to a Franchise Model
Moving your small business to a franchise model allows it to grow by having franchisees investing in your brand and operating their own stores. With the franchise model, you dont need to raise capital for the new stores and avoid the additional workload of managing multiple sites. Since franchisees are owners of their own stores, they tend to be more committed to the success of the business than employees.
Diversify Your Products and Services
Diversification allows your business to reach a larger audience, adds more income streams to your business, and protects it against demand fluctuations. For example, a T-shirt business with only one popular T-shirt design may lose a large chunk of its revenue when this design loses its appeal to customers. Consider expanding your product lines by adding new products and services that complement your existing ones. For example, if you own a food truck business, think about expanding your business by providing catering to parties.
Licence Your Products and Services
If your business offers products or services to which you hold the intellectual property rights, then you can grow your business without much additional cost by selling licences to use your products or services.
Acquire an Existing Business
A quick way to grow your small business is to acquire an existing complementary business and merge it with yours. When you acquire a business, you inherit its customer base and expand your target audience. An alternative to acquiring a business is to form an alliance with one. For example, if you own a graphic design business, it may be beneficial for you to team up with a web development business.
Look at Other Markets
The growth of your business may slow down as its targeted market matures. When this happens, it becomes hard for you to further expand your business. Get out of your comfort zone and dip your toes in other markets. For example, to grow your graphic design business, you could start an online retail business that sells stationery or T-shirts with your designs. By implementing the right growth strategy, you can ensure the survival of your small business and increase its revenues over the long term.