8 proven business growth strategies for small businesses
You’ve started your small business, and revenue is coming in. That’s great news! Nothing feels better than seeing your dream become reality. But you probably want your business to do more than just survive—you want it to thrive. So, now that you’ve established your brand, it’s time to use some proven business growth strategies to kick things into overdrive!
If you’re wondering how to grow your business, we can help. Let’s take a look at eight time-tested strategies, including protecting your company’s finances so that things like property damage and lawsuits—risks every small business faces—don’t derail your progress.
1. Make a business growth plan.
Some companies sort of stumble onto success. You might know of companies that took off just because they were in the right place at the right time. But that’s not the story behind most successful ventures. Growth in small businesses tends to be a journey that requires focused effort and a carefully developed roadmap.
You might have created a business plan before starting your company. That’s always a good idea. But now you need to lay out the steps you’ll take to sell more products or services, leveraging some or all of the ideas below. For example, maybe it makes sense to attend a networking event each quarter, send a targeted email to your customer list monthly, and do a little digital advertising all year long. And those would be just a few highlights of your detailed plan.
The right business strategies for growth will vary by company, but the point is to develop your own recipe for success and then follow it, adjusting the plan, if needed, as you go.
2. Continually research your market and competitors.
What products and services are currently in demand? What types of offers and incentives are other businesses like yours using? What recent changes in your market do you need to respond to? These are the types of questions you need to ask yourself continually. Successful companies stay tapped into current conditions and evolving trends to keep their offerings relevant and in the spotlight.
3. Develop a sales funnel.
Your customers or clients probably don’t often make snap decisions. Instead, they go through a process before deciding to purchase specific products or services. When you understand that process, you can create what’s called a sales funnel that guides them to your offerings.
For example, they might want to see pictures of your product first. Then, maybe they want to read about its features. Next, they might prefer to view or participate in product demos. The key is to get inside their heads and provide whatever they need to move further down the funnel. Developing this type of process helps you consistently turn curious people into customers or clients.
4. Pursue strategic partnerships.
People want to have their needs met as efficiently as possible. If you can help make that happen, your customers or clients will appreciate it, and you’ll probably get some good word-of-mouth advertising. Networking is the key.
Let’s say you have a drywalling business. A potential customer comes to you for a quote, but they also need some electrical work, which you don’t do. Your odds of getting the job are much higher if you can say, “We can do the drywall, and we work with an electrician who can handle that part of the project.” Being known as a one-stop shop can elevate your brand and help you grow your business.
5. Diversify your offerings.
Growth in small businesses often comes from expanding your offerings. For example, imagine you operate a bakery focused on different types of breads, muffins, and bagels. Then, you learn that there’s an unmet need for birthday and wedding cakes in your area. You might decide to add those types of products to your list, creating a significant new revenue stream and expanding your customer base.
6. Focus on keeping existing customers or clients.
Customer/client retention is one key to growing a small business. Experienced business owners know that it takes a lot less time, effort, and money to keep existing customers or clients than to attract new ones. Offering high-quality products and services and providing outstanding customer service are the best ways to keep people coming back for more.
7. Consider franchising your business.
Once you’ve developed some brand recognition, one of the most effective business strategies for growth is to pursue franchising. Essentially, you sell the rights to other people to open a business like yours in another location. It can be a win-win situation for you and the other owners. They get instant recognition and trust from customers, and you get regular revenue from the franchise fees.
8. Protect your finances with business insurance.
It makes sense to have business insurance to protect your company from unexpected expenses, but how does that help you grow your business? Well, like they say, it takes money to make money. When you aren’t having to pay for things like property damage or court-awarded damages, you have more money to market your business, expand your product or service portfolio, and boost your business in other ways.
Leverage growth strategies for small businesses to gain a competitive edge.
If your business is like most, you’ve got lots of competition in your market. If you don’t today, you probably will soon! But you can stay ahead of the pack by experimenting with different business growth strategies and leaning into those that deliver the most benefits.
Just remember that you don’t want to surrender any of the ground you’ve gained due to a lawsuit, property damage, or some other incident. Insurance is an affordable way to protect your company financially and ensure you have the capital you need for growing your small business.
It only takes a few minutes to learn what you’ll pay for general liability, professional liability, commercial auto, and other essential policies. Then, you can update your business plan to include carrying insurance and know that unexpected expenses won’t keep you from reaching your business goals.