Entrepreneurs who have survived start-up and built
successful small businesses, need to take further steps to expand their
ventures. If you have survived the hurdles of starting up and building a
thriving business, you may be wondering how to take the next step and
grow your business beyond its current status. Small business consultants
and owners of established ventures, say there are many possibilities or
ways on how to grow your business. According to them, the apt
application of a particular procedure will determine the extent which an
entrepreneur may go. They note that choosing the proper one or ones for
your business will depend on the type of business you own, your
available resources, and how much money, time and sweat you are willing
to invest all over again. The Chief Executive, Solomon Hunt Limited, a
business strategy and consulting firm, Mr. Tobenna Okoli, says an astute
entrepreneur must have clarity of thought when it comes to growing his
business. Some of the tips discussed in our last piece, on how to grow
your small business, require you to open a new location, deal on
licensed products, and establish an alliance. Below are additional ways
through which a small business owner can grow his venture, according to
experts:
Diversify
One major way to grow your venture after its being
built into a successful small business is to diversify. You can
diversify your products or services. In diversifying, you may consider
selling complementary products or services, teach adult education or
other types of classes, import or export yours or others’ products, or
become a paid speaker or columnist. According to professionals,
diversifying is an excellent growth strategy, as it allows you to have
multiple streams of income that can often fill seasonal voids and, of
course, increase sales and profit margins.
Experts say once you’ve been able to establish a
loyal customer base and have achieved some retail brand recognition, you
can broaden your product base with additional line extensions. This can
broaden your target audience and can increase your presence in the
marketplace, giving you the credibility to approach much larger
customers. Meanwhile, you should make necessary research on the product
or service line you wish to diversify into, so as to avoid making severe
losses.
Aim other markets
Since you are in the process of business expansion,
you need to be visionary and aggressive. Target markets that you think
your products can thrive in. Your current market is serving you well.
Are there others? You bet. Other markets may fetch more income for you.
Experts say if your consumer market ranges from teenagers to college
students, you should think about where these people spend most of their
time. Could you introduce your business to schools, clubs or colleges?
You could offer discounts to special-interest clubs or donate part of
your profits to schools and associations. This, in a way, will help woo
some customers to you.
Apply for government contracts
Though this may not be easy, experts say one of the
best ways for a small business to grow is to have the government as a
customer. The government is among the largest buyers of goods and
services. If you can market some of your products to government
agencies, and can complete a deal, this will impact on your turnover
positively. It is therefore important to seek ways on how to work with
your local government agencies as well as state and federal parastatals,
as this will help you determine the types of contracts available to
you. However, you must realise that a fair amount of patience is
required in working to secure most government contracts. Experts say
that requests for proposals usually require a significant amount of
groundwork and research. If you’re not prepared to take the time to
fully comply with their terms and conditions, you’ll only be wasting
your time. This might sound like a lot of work, but it could be worth
it. According to small business consultants, the good part about winning
government contracts is that once you’ve jumped through the hoops and
win a bid, you’re generally not subject to the level of external
competition of the outside marketplaces. Therefore, if you have the
opportunity to go for a government contract, please seize it. Tender
your request and work hard to get it granted.
Merge or acquire smaller businesses
This is another useful means that will help grow an
entrepreneur’s business. Once you’ve successful grown your business to
an enviable height, and you can comfortably acquire smaller ventures
that operate in your sector, do not hesitate to do so if you have the
opportunity. Also, if there are chances to merge with similar
businesses, you can go ahead and strike the deal. Experts say by
successfully acquiring or merging with another company, your customer
and your firm will grow considerably. However, before acquiring or
merging with any firm, make sure you do thorough research and consult
with experts and legal practitioners to guide you on the terms and
conditions that should be established.
Expand to the Internet
Some experts are of the view that very soon, there will be only two
kinds of businesses: those with an Internet presence, and those with no
business at all. Perhaps this is overstating the case, but an effective
website is becoming an integral part of business today. Professionals
say that landing your website in search engine results is vital, as more
than 80 per cent of traffic comes via search engines. Design and
programming are also important, but it’s your content that will draw a
visitor into your site and get them to stay. Your ability to put
together a content strategy based on user behaviour, measuring and
tracking visitor click streams, and writing the content based on
researched keywords will get you excellent search results and meet the
needs of your visitors. As an entrepreneur, it is your duty to seek
avenues that will help grow your business beyond its current status.
