How to Grow a Business – Market Share
Not surprisingly, a quick look at business literature from the late 90s reveals dozens of pieces dealing with how to deal with problems of growth and how to overcome them. In both those years, though, an occasional article was notable by an absence of practical advice on how to expand a business. Instead, here and occasionally there, an article would suggest how a business could plan to stimulate its growth.
a look at business plans from the 1990s would show that many entrepreneurs were not yet comfortable with their expansion plans. The main reason for this was a lack of expertise and ideas about expansion. Unfortunately, very few business owners had access to a professional business plan consultant or business development team. Even fewer were aware that some of the most successful companies in the world did not have official expansion teams. Yet, those companies routinely enjoyed stellar profits and grew for decades.
The key to business growth lies in planning,
especially if the entrepreneur is new to the industry at large. A good business development strategy for expansion should be considered even for existing small businesses. If the company has a good knowledge of the product, service, and marketplace, it can easily predict where it will be in a few years. Then, the entrepreneur can devote resources to services that will further improve its position and attractiveness to potential customers. Some companies may even be able to do what they need to do to achieve short and long-term growth goals, like increasing gross revenues for a specific product line.
even if the business has growth ideas that can grow into expansions, it may not be prudent to ignore some other aspects of the business for expansion. One of the most important aspects of business growth is finding a way to increase profits. By growing the business and investing in services to make the process simpler and faster, profit margins can climb considerably. This is one reason why many small businesses expand by selling their products and services to others.
As management experts often say,
the real test of a business’s performance is not when it does something spectacular, but when it does something mundane. That is why entrepreneurs should consider not just expansion as a goal, but also a method to keep the business profitable. The ability to expand profitably gives small businesses an edge over larger competitors. This aspect of business growth is often the only thing that distinguishes a small business from its larger counterparts.
It is also true
that many entrepreneurial leaders think that it is easier to expand a company than it is to expand its market share. After all, it is much easier to make a profit if you are selling products to customers that already buy the same product or service than it is to try to attract new customers. Yet, there are many business models in existence that suggest that it is possible to grow a business by marketing to existing customers and expanding to new markets. These models show that it is possible to grow a business by adding either new production facilities or even new sales channels. If expansion occurs only once, it makes sense to think of it as a waste of resources, since the resources were wasted.