When a new businesses begin to grow, product or service quality can suffer amidst that new growth. To successfully adapt, a business owner needs to consider how to scale their company effectively and efficiently to remain profitable—an indispensable response for any growth strategy for new business.
Business growth strategies help business owners create a clear vision that ensures sufficient capital and incites a business to assess their available resources.
To find your way to a clear vision, we discuss what a business growth strategy is, outline the framework for growth versus quality, and how you can get started on planning a better future for your business year-over-year.
What Is a Business Growth Strategy?
The first step you can take as a new or existing business at the beginning of the fourth quarter every year is to identify critical business growth strategies.
To identify those strategies, let's talk about what is a business growth strategy? The plan itself is an aggregate of creative tactics designed to maximize a company's value within a specified timeline.
Growth vs. Quality [Framework]
The two approaches highlight something specific in a business growth strategy, and well-established business owners generally use quality planning.
A successful framework for drawing up an annual business strategy identifies what you want to achieve and what resources you need from Small Business Loans to accomplish those small or family business growth strategies. Both growth and quality frameworks are always short-term yearly goals.
Before you begin drawing up your growth strategy, consider one of the three frameworks.
- An intensive growth strategy can include market penetration, mergers, market development, alternative channels, or new product development.
- Integrative growth is an aspect of a company's growth and acquisitions.
- Diversified growth expands a company's products or services in an unrelated industry.
Of the two growth frameworks, quality strategies specifically focus on quality assurance. The goal is more closely related to a systematic plan that links back to strategic business plans.
Each of the following business growth strategy examples focuses on frameworks mentioned above from different angles to explain when to focus on a growth strategy framework or quality.
When to Focus on Growth
As an online collaboration and communication app, Slack launched in 2013 with humble beginnings of only 8,000 registered users on their launch day.
By late 2015, they had grown to over one million users. Today, Slack has over 10 million daily active users.
Slack grew organically, which many business owners and marketers know as "word-of-mouth," the most effective marketing tool of all time. Slack contributed that early success to their exceptional customer service.
When to Focus on Quality
Companies like Amazon develop quality strategy plans that work best when offering a service they are already experts in. When Amazon.com began offering Amazon Web Services (AWS), focusing on key strategies for business growth, it made good business sense.
AWS significantly impacted the cloud computing industry by outsourcing their web technology as a third-party service provider.
Setting Yourself Up for Success
Your business structure can dictate how to develop a successful business owner strategy. It’s best to keep your leadership team involved throughout the entire development process.
Smaller businesses can draw on several sources like their accountant or hiring a marketing agency.
How to Plan Your Growth Strategy
When you first begin working on how to plan business growth, take time to identify and outline the information needed to develop a proper business growth strategy.
Developing a business growth strategy can be stressful. Just make sure to have a stress management process in place for yourself and your leadership team.
Plan For Success
By design, a business growth strategy helps your company succeed well into the future.
Spend time with your leadership team or marketing agency to ensure a well-defined business growth strategy that will launch successfully in the first quarter of each new year.
About the Author, James Webster
James Webster, founder and CEO of ROK Financial has almost two decades of experience within the financial services industry. His passion for helping small business owners and his innovative way of thinking, has allowed him to run multiple successful businesses including National Business Capital & Services. Under the National name, the team was able to help secure over $1 Billion in financing for small businesses nationwide.