Starting a business is a huge deal for anyone. It takes effort, time, and money to create a solution and get it across to those that need it. It’s only fair that as people enjoy your solutions, you also get very handsome monetary compensation.
If this is already happening, great. Keep up the good work. If not, then you need to learn and implement some effective business growth strategies for small businesses to set yourself on that path.
Business growth strategies are plans and methods used to achieve goals and objectives in any professional setting. Several methods are available to make sure that your business keeps growing; exponentially and not just linearly. Do I have your attention?
This article will teach you five effective business growth strategies for small businesses. Don’t let the “small” misdirect you. Your business is only as big as your imagination can fathom. Simply put, these methods will work for you no matter the stage of your business.
Do me a favour? Don’t let the jargon scare you. It’s just English. Let’s get started
Table of Contents
5 Actionable Business Growth Strategies for Nigerian Businesses
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Market Penetration
Market penetration is one of the most common and effective business growth strategies for small businesses. It means increasing the sales of a particular product to the same market (audience). You can achieve market penetration by reducing the prices of your existing products. Other methods include better and targeted promotion and advertising.
Let me explain further.
Whatever you’re selling, you have a competition. Yes or Yes? Now, growing your business is directly proportional to making more sales. You can only make more sales if your prices are lower than your competitors. This doesn’t necessarily mean you have to lower all your prices.
Here’s what you should do. Conduct research to know what product is in highest demand at a particular time. Then, lower your price for that product to draw in more customers and after purchase, introduce them to your numerous other products that complement their recent purchase.
Remember that the more extensive your fan base, the higher your profit and the more apparent your business growth.
Yes. It’s really that easy.
Read also: 11 effective marketing strategies to maintain a successful business
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Product Development
This strategy depends heavily on change and improvement. As the name implies, product development means adding more features to your existing products and ensuring your customers know about the improvement. (Very important).
In this case, development could be an upgrade or an additional service related to the product in question. You just have to make sure that it’s better than what your competitors are doing.
These additional services could be anything from home deliveries to electrical installations or even better customer service, depending on your line of business.
Everyone loves comfort, high status, and power. If you can add something extra to your products that emphasizes satisfying these needs, your business will continue growing.
Reminder: Whatever the upgrade is, let your audience know exactly what’s in it for them. The importance and psychological function of listing the benefits of any product or service can never be overemphasized. You can go as far as creating a press release for it depending on the level of impact it will have on your audience. Feel free to reach out if you need help with a press releases.
Read also: 5 digital marketing mistakes every entrepreneur should avoid and why
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Market Expansion/Development
Another one of the many effective business growth strategies for small businesses in Nigeria is market expansion. This strategy attracts the attention of a new segment of buyers. Whatever segment of buyers you’re focusing on right now, I can tell you that there’s a whole other community that you haven’t discovered yet.
This process differs by the business. Your expansion technique could be to set up another branch in a different location from the main one. It could be to increase or alter the distribution channel of your products. It could also be to search for “pregnant women” on Facebook so you can join their group and market your products.
Whichever one applies to you, market expansion is a surefire way to set your growth curve to meet your mission.
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Diversification
This concept is different from the earlier discussed business growth strategies. It involves making significant changes to the existing products and markets.
It is an undeniably risky move that depends significantly on customers’ needs and market research.
A suitable example of this is a roadside restaurant that decides to expand into a motel (or chains of motels). As the owner, you still make delicious and nutritious meals. The difference is that you now offer a place to sleep for customers that might be traveling at night and need a place to crash.
It is risky. But if it works, you’ll be glad you took the risk.
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Competitor analysis
Also known as competitor monitoring or maybe stalking. Whichever sits well with you.
Stalking might seem creepy to you, but it’s an important way to help your business grow. Competitors, in this case, refer to successful ones. You know… the ones that you secretly wish you could have all their subscribers.
If your competitor is doing it, so can you! All you need to do is figure out what they’re doing that makes their customers keep returning to them. When you have this information, you have two options. Either you follow their method without changing a thing or make some modifications before implementation.
Either way, it’ll give you results.
This research doesn’t have to be so elaborate. You can get the information you need by asking those customers. Don’t be surprised to find out that you share some customers with some of your competitors. You can run a survey that allows them to tell you precisely what makes you different from others.
Another way to get an insight into your competitors’ behavior (if they have a web presence) is to register on similarweb.com and track their every marketing move.
See why I used “stalking”?
Read also: How to beat your competitors as a Nigerian entrepreneur
BONUS TIP: Measure Results and Evaluate
Marketing strategy, social media strategy, content strategy, business growth strategies, etc. They have one thing in common. Under the right monitoring and measurement, they’ll provide clarity and help you make smarter decisions regarding your business. If you don’t measure, you’ll waste a lot of effort on so many things that aren’t working for you.
The amazing thing about measuring and evaluating results? The information you get is golden because it’ll help you know for sure where to direct all or most of your efforts.
Conclusion
To survive the test of time, your business needs to adapt to our constantly changing environment. As in, be super flexible. Flexible enough to keep up with competitors and consumer behaviour.
You just learnt five effective business growth strategies that can help you survive and, most importantly, flourish. Implementing these strategies requires having some essential things at the front of your mind. Your goals, vision, current status, and desired status will help you swiftly navigate this process.
So. How about making the first growth move with market expansion? Does your business target smart, young, and amazing Nigerians and Africans? Create a sponsored post at insight.ng now!
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About Author
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An experienced freelance SEO content writer and editor. She helps individuals and businesses communicate effectively with their audience and also improve their organic reach with relevant content.
She's an author of several short stories and a devoted lover of the paranormal and fantasy world. Asides business and lifestyle, she also writes about life science and technology.
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