Key Growth Strategies For New Business

Evergreen Business Growth Strategies For Startups

Irrespective of your business size, growth is fundamental to sustain and survive in a competitive market scenario. New businesses often venture into the target market fueled by enthusiasm. Still, the crux of your business success relies on adopting and strategically implementing the tangible long-term growth strategy.

Are you in a stage where your business needs a boost? It would be best if you muscled your market plan as new companies face a death knell due to a lack of a sustainable growth blueprint. But triggering the positivity, with the amalgamation of the winning strategies comprising the market development, disruption, product expansion, channel expansion, strategic partnerships, and acquisitions, you can reach the plateau of success sooner with high revenue generation.

However, suppose you go with the stats, according to the Bureau Of Labor Statistics. In that case, approximately 20% of new businesses face failure in the initial two years of venturing out, while 45% fail in the first five years and 65% during the initial ten years. The numbers themselves show why developing a growth strategy is crucial in your business machines and standing visible in cutting-edge competitions.

This article has discussed vital growth strategies that a new business should adhere, to set up a thriving business. Dive deep into the tactics shared and plan your marketing blueprint to build a resilient company with an impact and a strong future.

8 Significant Growth Strategies For New Business

A well-planned and well-executed expansion and growth strategy can fuel your business to a larger share of the marketing space. Besides, it can assist you in getting the best financial returns in the short term and aiding you to be on the top for a long time. To help you in the entire process, we have classified growth strategies into eight significant types, which you can implant to propel growth for your brand. Let’s have a look:

1. Discernment (Penetration)

Market discernment or market penetration concentrates on enriching your existing product’s market share, or you can also aim at the successful promotion of a new product. In this growth plan, you can adopt and implement strategies like advertising, attractive product packages, discounts, and offers on large orders, or you also can play with lowering prices to out-market your competitors.

However, if increasing or promoting a new product line is challenging for you, you can continue with your exciting product; ensure it with the more attractive offering, compensation packages, or bulk buy bargains.

2. Development

Market development is a common strategy adopted by growth marketers for new business, as this strategy allows you to go beyond your existing customer base. With the adoption of this strategy, you can expand your market base. With audience segmentation, you can enter a new industry or demography or department or a new geographical location. Note that this strategy promotes your existing product or services to new customers.

It is primarily beneficial to businesses where your common market is saturated, and you struggle to track new customers to your existing regions. You can take examples from Adidas and Nikes, expanding their ventures to the global market with attractive and engaging marketing campaigns for segmented audience lines. However, sometimes for SMBs, due to budget constraints, it may not be feasible to go global immediately, but you can branch out into similar regional markets.

3. Disruption

Market disruption involves entering into a well-established industry that a few legacy brands typically dominate and a new business doing things entirely differently from everyone else. As a newbie in the industry, you can adhere to several ways to potentially disrupt a market, such as adopting a different business model utilizing innovation; for example, Salesforce offered a cloud-based CRM to stay visible among the cut edge competition.

Besides, you also can play the price game where you can provide quality products in a cheaper tiered pricing model. Or you can offer the target market a completely new product like Slack did, changing the trend of the corporation communicating process replacing traditional email.

4. Segmentation

Market segmentation is another effective growth strategy; it stands for dividing your current market into diverse groups based on elements such as customer preferences, interests, locations, and other characteristics. Based on the set segments, you can choose specific variables to make your campaigns successful. Usually, businesses scan elements of the movements based on Geographic, Demographic, Behavioural, Psychographic.

If you have multiple product lines or offer various services, you can benefit from market segmentation. But note that to leverage market segmentation to its fullest, you need to do in-depth research to efficiently profile your customers and deliver tailored content accordingly resonating with your customer requirements. As a starting point, you can start with email surveys, purchase history, and can utilize site analytics, or you can adopt a powerful CRM tool to optimize your segmentation effortlessly.

5. Product Diversification or Expansion

It is an impactful growth tactic that can bring boost business growth significantly. Developing a new product or infusing new features can attract new prospects that were otherwise not interested in your product or brand. You can take an example from Semrush, which initially was a rudimentary SEO and paid search platform. And over the years, it has added great functionality to become a comprehensive software suite. Another good example is Sprout Social, a social media management platform; SMM tool Buffer.

6. Acquisition

The acquisition is one of the most viable growth strategies that can work tremendously well if your business has cash flow and or debt capacity available. The acquisition comes with multiple benefits: it helps you attain access to proprietary technology to develop yourself, and you can also gain access to the acquired company’s customer base. The strategy aids you in more significant cost savings and efficiencies through economies of scale.

7. Distribution Channel

Leveraging alternative distribution channels is another best marketing strategy for growth. Often, new businesses have their online presence for marketing, but you can stitch platforms to gain the best result. But here again, you should go with a data-backed decision. You can start marketing channels with your social media, email marketing, and business website. The ongoing trend in the current era has displayed that having both an online and offline presence can deliver you optimum growth. New distribution channels can help you propel revenue growth without any product changes.

8. Strategic Collaboration

Collaboration or partnering with other businesses is another viable method of growing your business to the next level. When you partner with a company with a product or service that complements your services or development, you can access their set of audience and vice versa. Furthermore, partnering with a brand can also bring you referrals, and you can benefit from the goodwill built around, which acts as a significant factor in your business growth.

You can leverage strategic collaboration, and it is a win-win for both parties involved that can propel resources such as skill sets, knowledge, equipment, or technology in an excellent way. For example, in eCommerce for order fulfillment collaboration with a platform such as Alibaba is a good move to lower startup costs and reducing the overhead cost. Note that while you are going down this route, ensure comprehensive legal contracts to protect your business in any unforeseen conflict of interest issues.

Final Thought

To summarize, it is crucial to have a precise idea about your brand’s identity and a clear grasp of your brands’ objectives and goals to make your growth strategies successful. Growth relies on the relentless focus on your core strength and competition. As a business, you need to understand your USP, where you stand in the market, and what makes you different from your competitors. Assessing and understanding all these aspects together can aid you in getting stratospheric growth.

Secondly, evaluating and getting deep insights into your target audience is vital to developing a successful business growth strategy. You require to have brevity on your prospects’ pain points, their requirements, and how you can satisfy their needs. A good understanding of your audience can develop a loyal customer base, impacting brand revenue growth and nurturing referral leads. Growth marketing requires dexterity.

Along with the need to pivot in minor ways, such as adjusting your approach to evolving marketing trends and matching the ongoing customer behavior, you also have to work on large-scale changes to achieve growth objectives and accelerate business growth. To sum up, remember that as a business, it is vital for you to figure out what works for you and tailor the strategies according to your target market and business vision.