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It is estimated that just about 50 percent of startups survive more than 5 years while only about 33 percent make it to 10 years. With such worrying statistics, what can you do to ensure that your company is sustainable? The answer is creating a growth strategy for the business.
A growth strategy involves a lot more than just envisioning success in the long-term. If you don’t have a tangible plan in place, you are literally losing business or at the very least increasing your odds of losing business to the competition.
The key with any business growth strategy is being deliberate. Figure out the rate-limiting step in your growth and pour as much fuel as you can on the fire. However, for this to bear any fruits, you must take the following steps:
- Establishing a Value Proposition
Your business can only sustain growth in the long-term if you have a good understanding of what sets it apart from its competitors. Identify why your customers prefer coming to you for a service or product. What makes you credible, differentiated, and relevant? Use your answer to explain to other consumers why they need to do business with you.
For instance, some companies compete on “authority” – If you want to buy healthy, organic foods, Whole Foods Market is the definitive place to do so. Others like Walmart, on the other hand compete on price. Identify what special benefits that only you are able to provide and forget all else. Straying from this proposition means that you risk of devaluing the business.
- Invest in the Right Talent
Your employees interact directly with customers, which is why you should always hire motivated individuals that are inspired by the value proposition of your company. Be cheap with marketing budgets, office furniture, or even holiday parties. Hire just a handful of employees and a great software development company, but pay them a lot. The best ones will usually stick around if you’re ever forced to cut back on their remuneration during slow periods.
- Identify Who Your Ideal Customer Is
You got into business in the first place with the aim to solve a problem a certain audience faces. You need to identify exactly who that audience is and determine whether it is your ideal customer. If not, you should determine who you are serving. Define your ideal customer, and always revert back to this audience while adjusting your business to stimulate growth.
- Verify Your Revenue Streams
Identify what your current revenue streams are. What revenue streams can you add to ensure the profitability of your business? Once you have identified the potential for new streams of revenue, ask yourself whether they are sustainable in the long run. Some cool products and great ideas don’t always have any attached revenue streams. Take care to isolate and understand the difference.
- Look to the Competition
Your competitors are likely excelling at something your company is struggling with no matter your industry. So, look towards businesses similar to yours that are growing in new and unique ways to inform your growth strategy. Never be afraid to ask for advice. Ask yourself why the competition has successfully made alternate choices. Are they wrong or is it that your businesses are positioned differently? The assumption that you are smarter is hardly ever correct.
- Focus on Your Strengths
Focusing on your strengths as opposed to trying to improve your weaknesses can sometimes help you establish strategies for growth. Reorient the playing field to match your strengths, and then build upon them to grow your business.
- Define Your Key Indicators
You should always be able to measure change. If you cannot measure change, you can never truly tell whether it is effective. Identify the key indicators affecting the growth of your business, and then dedicate money and time to research in those areas. You should also not forget to take the A/B test properly since making changes over time and comparing the current and historical results is not a valid approach.
