7 Simple Strategies to Grow Any Business

Introduction

Every worker is in some form of business. You are either an individual business person, leading a group to drive a business idea or working as part of an organization that is doing business. We say this in the sense that every organization (company) is meant to be adding value (solving problems) to a set of people (customers) and getting rewarded (payments) by those being served. Now, the value being added and the reward being received may differ from one individual / organization to another, but the model is the same, and it’s important to think in terms of the model instead of the specific context. You need to first know the value that you are giving out, who your customers are and the reward you are expecting.

Whatever business you may be in, whether for monetary reward or otherwise, here are a few simple but impactful strategies that you can use to grow that business. These strategies were very handy for me in growing a business from a monthly turnover of N250,000 to N60,000,000 within five years.

1.      Appeal to more customers in your territory

You will be amazed what people will do simply because someone tells them why they should do it. Newton’s law of motion says that every object remains in a state of rest or uniform motion unless impressed forces act on it. Keep talking to everyone that has the problem that you have the solution for, even if it appears that they already have an alternative to your solution.

2.      Expand into other territories

You need to reach out beyond your immediate catchment area. There are several people outside your current coverage that also need the solution that you have. Consider the town, state, or country next to you. Today, the internet has made the whole world a potential market for any product or service.

3.      Offer more products in your category

Have you asked yourself what else your customers are looking for which you can also produce with virtually the same raw materials that you are currently using? If you are producing cakes, for example, you can consider introducing meat pies or bread. The same customers who buy cakes also buy meat pies and bread; and these products have common raw materials.

4.      Expand into allied categories

You need to ask yourself what other things your customers need to get in order to fully utilize what you are offering. Where else do they have to go after leaving your premises, in order to be completely satisfied? For example, if you are a retailer selling children school bags, you may as well consider introducing school shoes. This is because when they buy your bags, they will still need to go somewhere else to buy the shoes.

5.      Increase your share of customer transactions

Know your customers. Find out how many times each customer consumes that product or service within a month or year and what percentage of that sale comes from you. What is it that is making them patronize others? Dissatisfaction with some aspect of your offering? Distance? Price? Set a customer loyalty / retention rate target and work it out.

6.      Go closer to customers

You have to constantly think of ways to take your offering to your customers instead of them coming to your premises to get it. Try and create an extension of your business premises as close as possible to your customers. You can appoint resellers and affiliates, open strategic branches, establish online presence etc.  This will make it easier for customers who desire your product or service to actually get it with less stress.

7.      Reduce your unit costs

Your unit costs can be reduced by bulk buying, seasonal purchases, combined purchases etc. This will give you a cost leadership advantage versus competition. You can also reduce costs by identifying and eliminating non-value-added activities in your operations.