Building a growth strategy that works immediately is a tough task, as you can’t copy and paste what seems to be working for another business. Instead, you need to customize your strategy for your business.
Photo credit: Master1305
Did you know that only half of businesses make it past 5 years and only one-third survive more than 10 years? These stats mean that most businesses don’t have the one thing that could help them maintain sustainability. And that thing is a growth strategy that works immediately.
A growth strategy is completely different from your yearly business plan. It can be tough to develop it if you don’t know what it is, its importance, and the key steps to developing it. Luckily, this article will highlight 7 key steps to an effective, result-oriented growth strategy.
Growth strategy: what is it & why is it important?
A growth strategy focuses on how your business will evolve to address the challenges of not just today but also the future. It offers your company a clear purpose and direction. It also addresses issues regarding your long-term plans. It begins by discovering and evaluating opportunities in your market.
A growth strategy is crucial because it allows your business to keep working towards its goals. It keeps both you and your employees focused and working in line with the goals. It also pushes you to move from thinking short-term to thinking long-term.
How to create an effective growth strategy
1. Determine a value proposition
One surefire way to help your business maintain long-term growth is by determining what differentiates it from the crowd. Find out why customers love your offerings. Identify what makes you differentiated and trustworthy. Then use your findings to convince other potential customers to do business with you. If you want to set a print-on-demand business, for example, you can choose quality or competitive pricing as your value proposition.
2. Find out who your ideal customer is
Why did you get into the business? The answer is simple: to address a problem for a specific audience. Find out who that audience is and whether it’s your ideal customer. If not, you need to do thorough research on your target audience, so you can discover your ideal customer and go back to solving their problems as you reorganize the business to foster growth.
3. Identify your key indicators
You must be in a position to measure change. Otherwise, how will you know whether your growth strategy is delivering the desired results? Find out which key indicators impact your business growth. Then, put time, effort, and money into those areas.
4. Evaluate your revenue streams
How do you currently make money? Are there other ways of making money you can add to your business to make it more profitable? Are these potential revenue streams sustainable in the long-term? Keep in mind that an idea or product might be great but might not have the potential to generate revenue in the long run. Depending on the type of your business and market, you can make money by selling a subscription, billing on a per-use basis, relying on advertising only, and providing different pricing levels to meet the needs of different customers.
5. Measure yourself against the competition
Your business doesn’t exist in the market alone. Some competitors might have better growth strategies than you. So, it’s important to constantly check how your strategy measures up to those of your competition. You also need to benchmark your offerings against similar products and/or services at peer companies. Pay attention to your competitors’ growth strategies. Highlight the movies they’re making in the market and weigh them against your own. How are they marketing their products differently? What unique variables are they seeing? Be sure to ask tough questions and actively look for unique ways to sharpen your strategy.
If you’re starting a podcast, for instance, you should listen to several leading shows in your niche and identify what they are doing differently. Familiarize yourself with their mode of operation and think about ways to give your podcast an edge over the competition.
6. Pay more attention to your strengths
Paying more attention to your strong points rather than finding ways to improve your weak points may sometimes be all you need to do to develop growth strategies that deliver remarkable results immediately. Adjust the playing ground to align with your areas of strength and invest more time and effort in them to help your business sustain steady growth.
As Ben Richardson of Development Academy said “Customers are looking for real, differentiated expertise so focus on that. Being good at across the board doesn’t make you stand out from the crowd. Focusing on your strengths does.’
7. Hire the right people
Human capital is an important part of an effective growth strategy. You need the right team to successfully develop and implement strategies. So, it’s crucial to invest in hiring and retaining the best talent that can surpass your expectations when it comes to performance. They must have the necessary qualifications, substantial industry experience, and have previously held strategy positions or served in a strategy team. They must also have the right characters and values that align with your business’s culture. If your team does not have the capacity to invest time in this task, you can outsource your HR services to a Professional Employer Organization (PEO). PEOs are especially useful if your growth strategy has global expansion on its agenda. If you’re expanding in Germany, for instance, you can partner with a German PEO, to recruit, hire, and manage your talented German workforce without having to set up a legal entity.
Final thoughts
Building a growth strategy that works immediately is a tough task, as you can’t copy and paste what seems to be working for another business. Instead, you need to customize your strategy for your business. Be sure to cover possible contingencies and develop a flexible strategy. The above 7 steps are great starting points.
