The sole purpose of running a business is to earn the maximum profit. Once a small business has been established, increasing penetration and growth are the only two ways to maximise the gains. The biggest challenge in this is, of course, competitors. Small businesses need a growth strategy to expand, grow, and penetrate a market with similar businesses. Businesses need to quickly develop and implement a proper growth strategy to avoid changes in growth variables. This article will highlight some small business growth tips that will allow you to grow in a market with similar businesses. These business growth tips will help you penetrate the market and expand your small business.
How to expand the business?
The foremost question of developing a small business growth strategy is How to grow a small business? Following are the essential tips that will help you solve the critical question 'How to increase business growth?':
- Take a calculative risk: The old statement 'higher the risk, higher the return is a fact for small businesses. It is vital to take certain calculative risks if you want to expand your small business and penetrate a market with many similar competitors.
- Brand awareness through community awareness: For any company that wants to grow, serving the community is vital because the community provides the company with resources, customers, and profits. Raising public and brand awareness through charitable activities will help attract new customers and establish a positive image of the company.
- Use social media: A company's social media image is a powerful tool to increase customers and build brand awareness. Various social media tools allow you to identify popular keywords and search queries, analyse the behaviour of your target audience, and solve multiple customer queries.
- Offer the best customer service in the market: Each brand spends a lot of money to provide customers with quality services. When you spend more energy and effort in providing the best customer service, you will be able to retain customers for a long time. These customers can even help the company find new customers and help create a good company image.
These were few steps that must be a part of your small business growth strategy, but the primary question is still unanswered: How to grow your business in a market with similar businesses?
Market penetration strategy is the growth strategy for penetrating an existing market with an already existing product. This strategy helps take away the market share for the product from the other competitors and competing companies. The following are the ways to penetrate and grow in a market with similar businesses. This will also answer the critical questions 'how to increase business growth' and 'how to grow your small business.'
1. Reduce the selling price of similar products and services
In a market where many players are selling similar products and services, reducing the selling price of products is the best way to attract new customers and increase market share. Small businesses who want to expand and compete with large businesses must reduce the price to increase the chances of business growth.
2. Widening distribution channels to attract more customers
Increasing distribution channels helps attract a higher number of customer and increase the customer base. Distribution channels are widened by increasing the number of distributors and retailers of products. Small businesses that might not have enough money to increase the distribution channels should try entering into partnerships with larger businesses to improve their customer base. A wider distribution channel means higher chances of meeting the target audience and enhancing business market share.
3. Targeting competitor's customers
When similar products are available in the market, customers quickly shift from one business to another when they get better customer service and price. Targeting competitor customers is the best way to expand the business and gain a more significant business market share. In this strategy, small businesses should target competitors' customer base by providing them with better products at lower costs. Understanding the needs of the customer is important for the success of this strategy. If customers are price-sensitive, then try providing the same product at a cheaper price. If the customers are service sensitive, then provide them with a better customer experience. This way, you will be able to penetrate and grow in a market with similar businesses.
4. Providing attractive promotional offers
Small businesses should provide customers with attractive and catchy promotional offers to attract them and increase their business market share. Attractive promotional offers like an extra discount on bulk orders, scratch cards, etc., can be useful. This way, you will be able to increase your customer base as well as catch the attention of market customers who were initially unaware of your business and product.
5. Sell on various online platforms
Small businesses who want to grow and penetrate a market with similar businesses should make their own business website or partner with different online websites to improve their customer base and attract new customers. Selling online allows you to attract customers from faraway regions without any time constraints. Online presence is an excellent way to compete with similar businesses and attract new customers. Even the cost of setting an online small business store is relatively less compared to the massive benefits it provides.
6. Provide a better version of the existing product
Customers always want something new and better, so providing improvements on the existing product is an excellent way of attracting many customers. A small survey could be performed to get customer opinions about improvements. In case the possibility of improving the product is low, a change in packaging and labelling is enough to attract both existing and new customers.
We can easily conclude that growth is an important phase of every small business. It is vital to take some calculative risks to grow and penetrate a market with similar businesses. Market penetration strategy is the best way to expand and grow a small business and increase the customer base. Businesses should reduce their product selling price, try selling on online platforms, provide improvements on products, and launch attractive promotional offers and schemes. Widening distribution channels and target competitor's customers are also helpful techniques for growing in a market with similar businesses and attracting new customers.
These are only a few small business growth tips to penetrate the market and compete with large businesses and corporations. Small businesses should form a proper small business development strategy keeping in mind customer expectations and pricing models. Businesses can create their business growth tips, but these small business growth tips are the basic ones that are used by many small businesses to penetrate and grow in a market with similar businesses. Here are a few frequently asked questions to answer the most common doubts related to business growth tips and strategy.
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Q. How to grow business and compete in a market with homogeneous businesses?
Ans. Following are the business growth tips to compete with large businesses and grow in a market with homogeneous businesses:
- Maintain good and cordial relations with customers, and provide them with the best customer service.
- Always look for upcoming opportunities, and try to take the forerunner advantage prior to other businesses and competitors.
- Improve social media presence to resolve customer queries and complaints immediately.
- Try to organise charitable activities to establish a positive image in the customers' minds, which will help attract new customers.
- Provide attractive and catchy promotional offers to attract more customers.
Q. What is the importance of preliminary research in developing a small business's growth development strategies?
Ans. Proper preliminary research helps small business in finding the best development strategies that help reduce the possibility of negative returns. It also helps in the growth of the business by providing advanced insights about threats, opportunities, strengths, and weaknesses of the business. Conducting proper preliminary research helps find upcoming and new development opportunities and allows the business to take the first-mover advantage over competitors and similar businesses.
Q. What is the best employee management system in the market for small business development?
Ans. Okstaff is an employee management system that helps the business track employees' performances, keep a record of staff attendance, allow employees to submit reports, keep a record of staff salaries, etc. It is one of the best applications available in the market to manage employees and helps in the growth of businesses.