All businesses have the common goal of succeeding and growing, even when the results aren’t too rosy at the end of the quarter.
It would be very helpful if business owners had a guide which could steer them in the right direction toward growing steadily. Growth can happen even when the financial climate is not optimum, as it has been demonstrated by companies such as Wal-mart, Starbucks and Harley Davidson. Even smaller companies such as Paychex and Oshkosh Truck have been able to make gains in revenue, gross profits and net profits.
Here are 5 disciplines of sustained growth:
Take good care of your customers. Once you have gained a good customer base, engage in a type of relationship with your customers which discourages their going off with your competitors. Tailor your products/services using data gleaned from your customers giving you an advantage. If you can continue being proactive with your customer service, you will be ready to deal with it, should a problem arise. Bonding with customers wherever emotion is tied to an interaction is another great way to retain them.
Increase your market share. Give customers a reason to bring their business from a competitor to you. Do your best to lower switching costs. Taking customers from a competitor can be tricky, so you really need to think of something good you can use as a hook. In the least, you must offer good value and superior quality. Or, you can also buy the competitor and take the customers to your main base.
Use your market position. Do what you can to find out where growth is taking place. You can do this if you keep an eye on industry shifts on buying criteria, population trends, market demand and service innovations. Once you have spotted this positioning opportunities, you can make them work for you if you can fit them into a systematic approach.
Dive into other markets. Before taking the chance of seeping into a nearby market, make sure you determine your chances of long term growth and profits. This is possible if you can match a competitor in value and quality, and you can offer customers more than the competitor offers.
Try new lines of business. No matter what you do, avoid overpaying for a new line. Assess the new business for profitability and leadership team, and work in simple business strategies to create the partnership.
You should not have to worry about basing your business portfolio on all these guidelines, but you should strive to base it on more than just one. Only a balanced growth portfolio can keep an organization growing when the market shifts dramatically.
As I close this article, I would like to take the time to wish everyone a happy and safe Memorial Day; enjoy the time with your families and be safe on the road.
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