5 Tricks to Get to the Next Level By Inside Option Reviews
Focus on Biz Development Most small businesses start out selling directly to clients, but longterm success comes from establishing distribution channels. For example, a small brewery may sell beer out of a single location, but distributing the beer to liquor stores can dramatically accelerate sales. A great way to start down the path of business development is to get in touch with businesses or professionals in related fields. So, a financial advisor may build a relationship with a Certified Public Accountant in order to generate a stream of referrals.
Diversify and Expand Offerings The majority of small businesses start out by selling a single product or service, but up-selling and cross-selling strategies are great ways to expand. For instance, an accounting app may provide basic bookkeeping tools, but expanding into payroll could generate more revenue. The best way to diversify and expand offerings is to find out what other services that you’re well-suited to offer clients that have an unmet need. For example, an accounting firm may hire Certified Financial Planners to expand into asset management to meet client needs.
Consider Potential Acquisitions Many acquisitions don’t pan out quite as the owners expected, but the right purchases can quickly accelerate a company’s growth. For instance, a retail footwear store may acquire a related footwear retailer to instantly double store count and sales. The key to successful acquisitions is to identify related businesses that can be acquired at a discount and are easy to integrate with existing operations. Like, a marketing firm may find a similarly-sized firm where the owner is looking to retire—the first firm would then acquire her clients.
Leverage the Internet Small businesses often focus on selling to a local clientele that they reach through traditional venues, such as word of mouth, referrals, or maybe print or television advertisements. The most scalable way to grow a business, however, often involves online channels. The fastest way to get started using the Internet to grow a business is to use pay-per-click advertising to drive potential leads to a website, but creating compelling content on a blog can be a great way to generate long-term success through organic search traffic. (For more, see: 5 Must-Read Blogs for Financial Advisors.
Give Up Some Control Many small business owners are tempted to do everything on their own, which leaves them with less time to spend on big picture strategies to grow the business. For example, the owner of a mechanic shop may insist on repairing cars and trucks every day. By giving up control and hiring new employees, owners can free up time to focus on higher-value activities in many fields. For instance, the owner of the mechanic shop may find time to focus on marketing efforts to drive more business, while being better able to meet demand.
The Bottom Line
Many small businesses that make it past the start-up phase struggle with finding ways to grow to the next level. The strategies outlined above should help them accelerate revenue through a variety of channels. These expansion techniques may also help diversify revenue in terms of products or service and customer concentration, which helps derisk businesses that are relying too heavily on a single customer demographic or service to drive income.