The Best Kept Secrets of Business Growth

In today's economy, operating a successful business can be a tricky thing to do. In fact, according to the U.S. Bureau of Labor Statistics, 20% of businesses fail within the first two years of being open, 45% during the first five years, and 65% during the first ten years. These statistics may seem intimidating or disheartening to some, but those who have overcome the narrative have learned that their business must possess certain key characteristics. While many successful businesses may share similar characteristics, they often appear quite different. No matter how a business may differentiate from its peers and competitors, there is one thing that every business must maintain to stay afloat: growth.

Businesses use various strategies and business models to achieve growth, but there are crucial elements that nearly every company must master to sustain growth.

1. Have a Plan and Make It Efficient

Establishing a solid plan is a critical first step in starting a business and ensuring its long-term success. Business owners need to have a deep understanding of their goals and how they intend to achieve them. It's essential to create a strategy that identifies both potential challenges and areas of opportunity and outlines how to leverage them effectively. Mastering and implementing a well-thought-out plan is crucial for a successful business launch and setting the stage for future growth.

Once the plan is in place, the business must do its best to make it as efficient as possible. McDonald's, the largest fast-food chain in the world, designed its entire layout around efficiency. They created a model to expedite food delivery, promote their offers, and streamline customer orders. Maximizing efficiently is essential in any business's chance for growth.

Businesses must be able to provide the best service, product, and attention to their customers. This can start by hiring the right people. When employees are happy, they offer better service and work more efficiently, which can help attract new clientele.

2. Build Trust With Customers

Many businesses want to grow immediately, and quite often, growing too quickly can lead to more bad than good. It is better to first establish and build the business's brand. Create a company known for excellent service, great products, and a welcoming environment to keep customers coming back. Returning customers are a valuable asset for marketing as they have the potential to share their positive experiences with their peers. Building a strong customer-to-business relationship is one of the most critical factors in running a business because, ultimately, it is the customers who keep the business running.

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In today's world, social media and the internet play a significant role. Building a business that offers an engaging online experience has the potential to gain considerable traction. Establishing a business's presence on social media and regularly interacting with customers is essential. The marketing team can carry out various tasks, including running promotions, organizing giveaways, sponsoring events, creating engaging videos, and participating in local activities. Engaging positively with the public is essential for attracting new customers and fostering new relationships.

3. Improve Profitability

A business's profitability is a fundamental measure of its success and sustainability. Maintaining a healthy profit margin and striving for continuous year-over-year growth are vital for long-term success and prosperity. This can be accomplished by implementing cost-saving measures, diversifying product offerings, and leveraging the latest digital technologies to streamline operations and reach new customers.

4. Invest in Yourself

When revenue starts to increase, it can be challenging to cover all expenses while still making a profit. This highlights the importance of planning the next steps and anticipating all scenarios. Explore different ways to use revenue to improve the business and promote growth. Identify the financial weaknesses and explore strategies for improvement.

One way to invest in yourself is to research individuals who have navigated similar challenges. Don't limit your research to only those who have succeeded; there are valuable lessons to learn from those who have also encountered failures.

5. Be Adaptable

A trait that many successful startups share is the ability to adapt when the market changes. Businesses can learn valuable lessons from quickly dealing with change, as it enables them to discover alternative approaches to operations. Companies that fail to adapt to market changes often do not survive, but by seeking ways to adapt and thrive, untapped potential within a business may be uncovered.

6. Expand Where It Makes Sense

With time and accrued deep understanding of the business comes the ability to seek new growth opportunities. When such opportunities arise, it is key to expand strategically rather than just sticking to what feels comfortable. There is no one-size-fits-all approach to moving a business forward, but flexibility in the growth strategy can be advantageous. Expanding into new ventures allows the business to gain experience in areas where they may have previously had limited knowledge.

Many businesses have achieved success by following these steps, but the truth is that there are numerous paths to business growth. Each business is unique and requires individuals who understand its dynamics and know how to optimize its customer relations, marketing, and financial operations. Once mastered, the sky is the limit.

Author

Derrion Batieste, Deal Analyst, Benchmark International

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