If you’re the owner of a small business, then you know how important it is to make sure that your business is growing. For many owners, this can be a challenge because there are so many different responsibilities to take care of and tasks to complete in order for their business to run smoothly.
However, accommodating growth with stability is not difficult. What you need to do is know where to focus your attention. With some careful planning and strategic thinking on your part, steady growth for your small business will become much more attainable than ever before.
Prioritize Customer Retention
Retention is a key part of any business, but it’s especially important to small business owners. When you lose customers, they don’t just disappear. They go somewhere else. Therefore to retain your existing customer, you need to ensure that they have a pleasurable experience doing business with you. Make sure their concerns are heard and their needs are tended to.
An obvious part of this strategy is offering good quality products and services. Other than that, you need to streamline your sales process so that they can buy from you effortlessly. Offer discounts, guarantees, and warranties. Also, employ customer service reps who will be able to deal with any concerns or complaints your customers will have.
But why should you spend so much time and money to please a few dissatisfied customers when you can just get new ones? Well, according to HubSpot, it is 6-7 times more costly to acquire new customers than to retain old ones.
And a 5% increase in customer retention rate can increase your sales by 25-95%. Therefore, by spending a few extra bucks to retain customers, you’ll be saving money in the long run.
Increase Your Brand Visibility
Brand visibility is an important part of any small business. You can increase your brand visibility by making your marketing campaign more efficient. If you own a start-up, chances are your funds are limited.
In that case, determine your target audience first and then decide how you can reach them. Don’t put money into every advertisement platform you can find, prioritize platforms that guarantee higher returns.
The more consistent your brand is across all forms of advertising (including social media), the more customers will be able to identify with it and relate their experiences with what they see online. You also need to be generally active on social media. Zippia notes that 77% of Twitter users appreciate a brand more if their tweet is responded to. Therefore, make sure that you interact with your potential customers online.
Use Forecast Models To Plan Ahead
A forecast model is a computer program that helps you predict the future. It takes into account various available data like market trends, your previous sales records, economic climate, etc., to predict what situations your business might go through in the coming times. What data is taken into account will depend on the nature of the prediction.
There are different types of forecasting models available. What style suits you will depend on exactly what you’re trying to figure out and what your goal is. But regardless of the type, forecasting demand can help you plan your next move wisely. The last thing you want to do is double down on production at a time when the market demand is starting to dip.
See What Works And Prioritize It
One of the best ways to get new customers is by having a great product or service. But even then, you can’t be sure how well it will do until you start offering it to people. After seeing some success with your marketing campaign, take that data and look for trends. You should be able to spot some patterns regarding what is driving people your way. Make sure you double down on what is working and discard what is not.
This goes beyond marketing. Even in terms of the goods and services you offer, not every one of them will do well. You need to increase production for the items that do well and cut down on what is losing you money. Even with a solid plan, you won’t catch a fish with every hook you cast. Therefore, if you don’t periodically review the feedback from your efforts, at one point, you will simply be wasting hooks.
CBInsights notes that the most significant reason start-ups fail is that they run out of cash. Now, this doesn’t indicate anything by itself, as it can occur for various reasons. But by eliminating your fruitless expenditures and doubling down on your successful ones, you reduce the risk of the same happening to you.
Enter Into Strategic Partnerships
Strategic partnerships are very important for your business to grow. They occur when two or more companies come together and work towards a shared goal or objective. You can think of it as ‘cooperation,’ where both parties benefit from the relationship.
If Baskin Robins and Cadbury join hands and create an ice cream that is made of dairy milk chocolate, that can be an example of a strategic partnership. If Bose declares that anyone buying their speakers on Amazon will get exclusive discounts, that can also be an example of a strategic partnership.
According to the BPI network, 85% of companies say strategic business partnerships are vital to growth. However, keep in mind that they need careful planning because the wrong partner could end up being detrimental to your small business. Before entering into any kind of strategic partnership agreement with someone else, make sure that both sides are aware of each other’s strengths, weaknesses, and goals.
You always need a bit of luck to be successful in a business venture. But still, it is mostly about smart planning. Make sure you plan out your moves before engaging in them. By prioritizing customer retention and increasing brand visibility, you can increase your chances of success in a competitive market.