Small Business Growth Strategies for Dummies
All businesses have aspirations of being sustainable and successful however the road to success, particularly for small and medium businesses, can be extremely tricky.
While many small businesses may have an enthusiastic and hardworking team required to start a company, strategies are required in order to gain long term success. Without the right strategies’ businesses can cease to grow, fail to reach their full potential or, in extreme cases, dissolve completely.
The following are suggested strategies that can be implemented by small businesses in order to position themselves on the right track toward growth and sustainable success:
While this may not be considered the first strategy by a small business it can often be the most viable strategy. Common weaknesses found in many small businesses can be solved through partnerships or mergers where the company can gain many benefits.
The benefits a company can gain include extra resources. Resources, or a lack thereof, are often a challenge within small companies. Human resources to assets and technology are often in shortage. However, through partnerships or mergers companies can pool their resources to achieve greater results and reap the benefits of a strategic partnership.
Merging companies also means the merging of two customer bases for the company to market their products to, often a new client base is the edge companies need to further their growth.
Implement a CRM system
Implementing smart software solutions can assist small businesses in accomplishing more tasks in an efficient manner, CRM systems are a great example of this. CRM systems are customer relationship management tools for managing current and potential customers and allow businesses to stay on top of their customer relationships.
A CRM system can be used to scale down the management of customer data therefore allowing a small team to manage much larger amounts of customer information. Basic functions such as data input can be streamlined through the platform, this lets small businesses stay organized and aware of their history with the customer. An awareness of past client interactions can be beneficial in building a strong client relationship and effectively ensuring client retention, this is required for all businesses looking to retain their market share.
CRM systems can help small businesses gain a better understanding of their customers, something that was only previously possible through the use of costly data analysts. Analyzing the data collected through a CRM system allows companies to gain insight into their customers and make smarter business decisions such as the optimal length of a sales cycle or refine their product offerings.
Monitoring Sales and Sales Agents
Small companies do not have the benefit of dedicated teams, this means that many employees will be required to carry out multiple tasks or ensure that they are working at their maximum potential. Sales Agent Monitoring software ensures the latter.
Field sales agent monitoring software tracks the sales activities agents conduct during their working hours. The transparency this software provides ensures efficiency and productivity, but how and what exactly are the benefits.
Time management is a crucial part of sales, with sales agents monitoring software agents now gain the ability to prioritize their activities in order to work efficiently and complete their tasks.
Communication is key within smaller companies however this can be difficult for sales agents to maintain as they are often travelling. Therefore, access to information is extremely important. Providing sales agents with a platform where they can access information that is key to decision making such as stock levels or outstanding tasks can mean the difference between closing or losing a potential sale. This means improved conversion rates and increased growth.
Identify and Monitor Competitors
While this may not be considered a strategy or priority in many small businesses, analyzing competitors and monitoring their growth and strategic decisions can help a company who wants to stay ahead of their competitors and possibly become a market leader in the future. Gaining insight and learning from the mistakes made by competitors can save small companies from making costly mistakes and saving money which can be invested in developing new growth strategies.
The strategy is simple, create a new product or service in order to cater to the existing markets. This strategy is particularly useful in sectors with fast moving technological developments such as the software as a service (SaaS) industry. This strategy translates well to smaller companies as they can move swiftly and introduce new products onto the market or include new features to existing products in order to gain an increased market share.
Reduce the Product Line
Increasing a company’s product line in a viable strategy in many situations however so is reducing the product line. Products and services require resources to carry out or produce, in some cases small businesses will not have the resources required to maintain these services or production. Performing an analysis of a company’s product range can provide insight on the most and least profitable offerings, a decision can then be made on whether it is a good idea to continue offering certain products to the market. Reducing the product line allows for more time and effort to be placed on the profitable offerings and ensure they grow and prosper, in turn allowing the company to grow as well.
Refine Recruitment Tactics
Small businesses by nature have smaller teams, this increases the importance of recruitment as the wrong employee can have a disproportionately large impact on the overall operations of a company. Refining recruitment tactics leads to employing the right person who may share in the company’s vision and provide meaningfully to the end product. Recruitment is not about filling a space but rather about employing the right candidate who will assist the company in their plans to grow.
In some cases, it can often be the most obvious or simplest strategy that is the most beneficial towards a company’s growth. The strategies listed cover a wide range of options from innovative software offerings that aid in efficiency and company growth to environmental scanning and the insight gained from this practice.