Growing your business can be a challenging experience and can be a period of great uncertainty. You may have just survived your first year and are looking to take your business to the next level. Maybe you have been trading for many years and feel that now is the right time to expand your business. Whatever your situation is, growing your business can certainly be risky if done incorrectly. In some cases it could spell disaster for your business, maybe even the end of it. When done correctly it can be incredibly rewarding, both financially and personally and take your company to the next level.
In order to successfully grow as a business, you need a clear strategy in mind, but you might be unsure as to what this actually involves. You may have thought getting to the milestone £1 Million turnover was difficult, now you face the more difficult task of reaching £5 Million. Don’t panic though, below are 5 tips you need to include in your strategy when looking to hit that all important £5 million turnover mark.
Unless you happen to be selling golden goose eggs and in fact have your own golden goose that lays said eggs, it is likely you face tough competition in the market. Particularly for eCommerce businesses, competition is fierce and potential customers are only one Google search away from going to a competitor. That is why it is crucial for you to differentiate yourself from your competitors. Whether this is offering a unique product, or top-notch customer service you need to offer people a reason to choose you over other businesses and to stay loyal with you in the long term. These days delivery is becoming a crucial factor in a buyer’s decision and offering competitive delivery is a great way to stand out from the crowd.
Cultivate your customer base
If you are considering growing your business, it is likely that you already have healthy sales figures. It is important, however, to ensure that you capture customer data appropriately and use this to build strong relationships and enhance your company’s reputation. Businesses cannot grow off the back of one off sales so it is important to grow and nurture your customer base. Offering reward points or a loyalty scheme is a great way of guaranteeing repeat business. Any complaints need to be dealt with accordingly and in a satisfactory manner so that your customers feel valued and to prevent them from telling others about a negative experience with your brand. There is a prevailing rule in business that 80 percent of your sales will come from 20 percent of your customers, so it is important to nurture these customers to guarantee repeat business.
Spend on Marketing
There is an old saying that Sales makes a company money and Marketing spends a company’s money. When looking to grow a business one of the first and most obvious areas to look at is the marketing. In order to create an effective marketing campaign, one must first understand the target audience. A great way of doing this is to create buyer personas that breakdown the characteristics of the kind of people that are buying your product. Once you have your buyer personas you can tailor your marketing in order to maximise how effective your campaigns are.
Reinvest in the business
When sales are high and cash flow is positive, you may start to reap the rewards of your business. When profits are good it can be difficult to give yourself a pay cut after all your hard work, however this may just be the ticket if you want to grow your business. Rather than seeking initial short-term financial gains think about the longevity of your company. Reducing your salary in the short term could ultimately mean a higher salary in the long term once you have successfully grown your business. It is important to constantly review and assess your business to see which areas could do with a well needed injection of cash.
Invest in good systems
Growing a business requires certain key factors, such as high sales and a strong base of customers that really buy in to your brand. In order to achieve both of these you need to invest in systems that allow you to capture relevant data and then analyse this and respond to it accordingly. Having a CRM in place will allow you to track what your customers are spending on and tailor marketing based on this.
In order to maintain high sales, you have to be consistently providing a quality product to consumers and make sure you always have accurate stock levels so customers aren’t left disappointed. Having stock control software will prevent such disappointment and will allow you to manage stock in accordance with your customers’ buying preferences. Buying in the correct amount of stock, that which sells, reduces wasted spend on unpopular item.
Seek out external investors
Sometimes you have done all you possibly can. From a business point of view you may be pouring your blood sweat and tears in to the company, but still aren’t seeing the returns you would expect. It may be time to consider seeking external investment. Angel investors can provide your business with a much-needed injection of capital that give you the resources to expand. Naturally, taking someone else’s money carries with it certain expectations and it may also mean giving up some of the ownership in your business so always be clear when seeking out investment from outside your company.
These 5 tips will get you off to a great start when planning your growth strategy. Proper planning is the key to an effective growth strategy and it is important to consider as many aspects as you can to guard you against any potential pitfalls of growing your business. Don’t let this discourage you though as no business was built without risk, taking a calculated risk to grow your company could be one of the most rewarding decisions you ever make as a business.
Remember, no matter how big your aspirations, Khaos Control Cloud has the functionality and capability to grow with your business. For more information or to book a free demo, click here.