5 Strategies Small Businesses Can Use to Grow Faster
From hiring talented employees to planning your business finances well in advance, here are smart business growth strategies to fuel expansion.
Growth is the goal of every business owner and this is when timeline matters a great deal. A business that grows fast is better able to harness market opportunities and create revenue. On the other hand, a business that takes time to evolve loses out on income. However, fast growth requires a defined strategy and a timely infusion of funds.
Here are 5 smart strategies that can help your small business grow faster:
Understand Your USP and Make the most of it
- Now that your business is at its growth stage, you have a better idea of what your unique selling point is as compared to when you were launching your business.
- Ensure that you capitalise on this, since goods with a USP not only have a higher demand, but can also be retailed at higher profits.
- Think of ways to ramp up production as well as the marketing of your USP to facilitate faster growth.
Learn From Your Competition
- Competition is what keeps you on your feet, so learn from your competitors’ success and failures.
- Modify your offerings and your pricing based on what your competition is doing and what is garnering good results in the market.
- Keep an eye on the new consumer segments or selling ideas of your competitors and emulate their best practices for faster growth.
- Whether it is improving your packaging, offering seasonal discounts, selling online or targeting millennials, the most cost-effective and market-tested way to know if an idea works is by studying your competition and learning from their example.
Hire Talented Employees
- Employees are integral to any organisation. The smaller your business, the more importance you should give your staff, as they directly affect overall productivity.
- When it comes to driving growth, you cannot do it alone. Thus, hire skilled employees and motivate them to work hard.
- Offer incentives based on achieving sales targets, converting new customers or getting to a certain production number, and you’ll see your business grow faster and more efficiently.
- Ensure that your employment process is flawless. Hire based on past experience, recommendations and a positive attitude towards growth.
Plan Your Financing
- Your growth plan may include the acquisition of new machinery, hiring a new team or shifting to a bigger commercial complex. All of this requires financing.
- Identify the best source of finance for various needs and be informed about Small Business Loans, their eligibility criteria, interest rates, application process, etc.
- There are various customised loans for the needs of small businesses, so choose your external finance with care. For example, if you seek to raise funds for purchase of equipment, a machinery loan may be the right choice. Alternatively, if you aim to raise finance for working capital, you can opt for a working capital loan.
- Ensure that you don’t overestimate or underestimate your financial needs, and have a repayment plan in place. If you are unsure of your growth needs, consider taking a business line of credit instead of a term loan.
Choose Between Diversification and Market Penetration
- You may have a lot of good ideas to achieve business growth, but doing too many things at once may lead to more confusion than concrete results.
- If you are choosing to diversify, focus on market research and get that absolutely right. If you are looking to penetrate the market, ensure that it has the demand for the product you plan to sell.
- Since both these moves require a lot of planning, strategy and focus, it is not advisable to do both. Instead, choose one major growth strategy at a time and strive to achieve success.
Account for financial outlays right when you are devising your growth strategy so that all your plans can be carried out effectively. Use a Business Loan from Bajaj Finserv to fuel your business’ growth. This loan goes up to Rs. 30 lakh, and features simple eligibility criteria, flexible tenor options, easy online application, plus a competitive rate of interest. With options like Machinery Loans, Working Capital Loans and Line of Credit, Bajaj Finserv gives small businesses like yours a chance to pursue growth without compromising on funds.