Starting your own business requires thorough planning, while efficiently scaling your small and medium-sized enterprise can be gradual. Driving it to success requires a strategic approach by developing a proper business plan and whole-hearted commitment from everyone working with you in your company.
There isn’t a one-size-fits-all, straightforward strategy that applies universally to small or medium-sized business owners seeking growth. Nevertheless, one of the most crucial elements in advancing your business is consistently keeping tabs on and assessing your financial well-being. By maintaining robust financial health, you open the door to the rapid implementation of various other growth strategies. To ensure the ongoing monitoring of your financial health, it’s imperative to update your financial records regularly.
With up-to-date financial records at your disposal, you gain access to real-time insights into your financial reporting and cash flows, allowing you to determine the profitability of your business. Well-maintained cash flows enable you to make informed decisions about scaling your business through thorough research and market understanding, allowing you to identify the best growth opportunities. E2E Accounting can help you maintain your books of accounts accurately so that you can have all the real-time insights of your financial reporting.
In addition to monitoring your financial health, E2E Accounting also suggests several essential tactics you can employ to maximize your business’s potential for growth.
Driving your business to growth requires thorough market research. It is necessary to understand not only existing customers but also your potential customers. Having enough insights about your target market and gaining knowledge about their desires and needs is essential. This way, you can check whether you can change to meet those customers’ needs and grow your business.
For example, research your target markets by analyzing customer demographics, conducting surveys, and studying historical sales data about companies performing well. It will help you to understand their position in the market.
Another essential aspect you must remember is researching your competitors. It is necessary to know the strengths and weaknesses of your competitors, which will help you make appropriate decisions.
Case Study on Business plan developed by Canon to generate a 700% ROI.
Canon, one of the biggest electronics companies globally, tasked AWA Digital to gauge and increase its product’s demand in various geographies. AWA conducted thorough customer research through a market survey of their target markets, and they discovered the below attributes of their customer’s behavior and reservations towards purchasing their products.
With the help of these insights, AWA developed a business plan to optimize their advertising campaigns based on the locations through which they can include what the consumers considered essential factors for purchasing.
This feedback from customers helped Canon generate an overall ROI of 700% using personalized campaign methods for its target audience.
A sales funnel can be presumed to be a customer’s journey. It helps you take your business to the next level. Customers visiting your website are at the top of your funnel, and when they purchase something from your website or sign up for your services, they are the ones successfully passing through your sales funnel. Hence, you must develop innovative ideas through discounts or vouchers, which can push your customers through this funnel and make sales.
For example, Twilio offers its developers Communication APIs services through which they can quickly implement embedded voice calling or texting in a software application or their products. Twilio understands the importance of this communication to its audience, and they are experts at it.
Twilio uses the sales funnel strategy for its growth. With the help of this strategy, Twilio’s potential customers can easily consider them as their potential vendors through the keyword search “Communication APIs,” as Twilio ranks high in search.
Its prospective clients can also quickly locate them on social media channels through self-paced games prepared by Twilio for learning or their blogs. The prospective clients can create free accounts or talk to sales representatives through help guides.
The website visitor becomes the sales lead for the company through the information collected via an opt-in form.
Finally, these leads are converted to sales through the solutions provided by Twilio upon satisfactorily addressing all the concerns and questions.
Growing your business is possible only if you can retain your customers. Customer retention only increases when you can build and maintain customer loyalty. Acquiring new customers is five times more than holding on to existing customers; this can be done only,
Case Study – Business Plan of Spotify to Retain Its Customers.
Spotify retains its customers through the beginning of its customer relationship. They provide the lists of their new customers with several reasons to stick around with them. Though Spotify offers free apps, its Premium subscription provides more functionality to its users, such as ad-free music listening, selecting, skipping, and downloading music and playlists. However, it is not necessary that providing these features will encourage their users to upgrade to Premium plans. Spotify developed a business plan where:
Making your brand visible is also one of the best ways to grow your business. It helps in attracting new customers. One of the explicit ways to showcase your brand is by participating in various events. It will increase your networking and gathering information on the preferences of local customers.
Examples of networking:
Corporate social responsibilities help you recognize your business’s impact on the community. Generally, many customers prefer doing business with companies that align with their values. See if your product can go green and does not impact the environment.
Examples in which you can Go Green:
Partnering with another business opens the chances of broadening your network with new customers and aligning growth strategies. However, these partnerships must be exercised strategically and only with the ones where your business goals align. You can also consider partnering with vendors to expand your business. But, no matter how and with whom you partner, maintaining a healthy relationship with your partners is essential.
The best example of a strategic partnership is Starbucks. Starbucks strategized to partner with national stores such as Target and Barnes & Noble and reached nationwide, thereby increasing its revenue.
Franchising is one of the best strategies for growing small and medium-sized businesses. You sell your business rights to an independent owner, and they operate their franchise for your business. However, it is essential to understand whether your business is franchisable before you sell your rights. Franchise often works best for fast-food chains, gyms, restaurants, electronic and automobile products.
McDonald’s, Starbucks, and Marriott hotels adopted the business plan of opening their franchises which helped them increase their numbers at several locations to grow their business and generate revenues.
Once you are successful with your main product or service, you must consider planning to introduce new products or services. The introduction of new products can help you acquire new customers.
One of the best examples of diversification is Coca-Cola. The company diversified its offerings with several bottled water brands, energy drinks, juices, sports drinks, teas, and vitamin water. This diversification allows the company to survive and flourish even if the demand in one central area slows down.
No doubt, franchising can help you extend and increase your customer base. But if you need more than franchising, then to expand your business, you must consider exporting your products or services through e-commerce. Find the right opportunity for online sales and the best means to email@example.com national and global platforms. It will help you to increase your market share on global platforms.
You can apply various strategies to grow your business. But it is equally important to understand and measure which approach works for you and which does not. For example, whether the loyalty program will improve your customer base and help you retain your customers. If this strategy is not working, you need to apply another approach. In such cases, the CRM strategy might work for engaging your customers, or email campaigns and social media platforms can be a better option. Thus, timely measurements and refinements are essential for the growth of business.
Taking calculative risks to grow your small and medium-sized business would be best. You must scrutinize your business plan and create realistic and precise projections regarding how specific strategies could impact your enterprise. Constantly tracking and monitoring your progress and implementing amendments are necessary for a successful business.
We at E2E Accounting can guide you in building strategies to help you grow your business through effective financial decisions & understanding your company’s financial health. By outsourcing your accounting needs to E2E Accounting, you can be assured that all your financial reports are accurate while freeing time for other essential tasks!