Growing your business
posted by: Jason Hulott
Many, perhaps most, business leaders like to think that they will be able to grow their business.
Here are a few thoughts about some of the options you might be facing if you’d like to expand your commercial activities.
Growing your share of wallet
One of those places to look is your existing customer base.
It’s perhaps unlikely that you are currently capturing 100% of their expenditure in your business domain. They may be using a number of suppliers and for a number of different reasons.
As a result, one of your potentially most fertile approaches might be to consider options for how you would grow your share of the business they are handing out.
This is sometimes called “expanding your share of their wallet”. There is no one technique available for doing this because a lot will depend upon your individual customer and your industry sector. It is possible to get specialist advice on techniques here from sales and marketing professionals.
Acquiring new customers
This is essentially about sales and marketing.
If you have previously failed to sell to certain customers or customer segments, then the chances are there’s something wrong with your approach in one or more of the following areas:
- your pricing propositions;
- the product or services you are offering;
- your organisation’s service standards;
- errors of approach in your sales and marketing methodologies;
- your failure to sufficiently exploit the various delivery channels appropriately (e.g. internet, social media, etc.)
All of these will need to be thought about long and hard as part of your activities to sell more. It’s necessary to be objective and self-critical because sometimes it can be difficult to “see the wood for the trees” if you are too close to events.
Developing new products and propositions
If you are going to sell more to your existing customers or acquire new ones, you may find that you are going to need to offer a compelling reason for them to start giving you their business.
That can sometimes be a matter of simply adjusting pricing alone but more commonly it is associated with bringing new propositions to the marketplace.
Almost inevitably, it costs money to develop new products and services. Ideally, business expansion through new product development should be rapidly self-funding but the real world doesn’t always work that way.
There is often a gap between needing to start spending money on developing something new and that innovation starting to yield increased income. This is one major area where business expansion finances can be essential. That’s because many innovative propositions simply never get off the drawing board because they are starved of business expansion funding.
If you are trying to grow your business, it is important from day one to understand where the resources are going to come from. As we touched on above, we at Cubefunder may be able to assist with various forms of business expansion finance but you’ll also typically need other support of the type currently provided by personnel and other forms of business facilities.
Resource planning is therefore essential at the very outset of business expansion. Numbers of business expansion plans fail due to being insufficiently resourced in human and equipment terms.
Most businesses hope for natural organic growth. That’s healthy when it happens.
However, organic growth can be relatively sedate and also may have a tendency to stall for want of the injection of new ideas.
If you would like to grow your business robustly and consider business expansion into new directions, some of the above will be required and most notably the appropriate expansion funding assistance.