It’s a tough world out there, and it takes guts and courage to start a small business. Small business owners have taken on a lot of risks to follow their dream of becoming their own boss. It’s been said that a business only truly becomes successful once they’ve hit the ten-year mark. Everything before that is just survival. If you want your business to last, then you need to focus on sustainable growth.
Business success depends on a long list of factors. You have to get everything right, from developing the product, hiring good people, finding the right location, establishing your niche, and so on. You need to do a lot of things correctly, and one wrong decision can derail your business. Working with the right partners such as a financial planner can also give you the support you need.
Growth is something you have to sustain over a long period. Here are a few growth strategies to help you get your business to the next level.
1. Take care of your existing customers
Many advisers and consultants will tell you that you need to attract new customers to grow your business, and they’re not wrong. However, for small businesses, their best bet to sustain growth is to ensure their existing customers remain happy with their products and services. A Columbia Business School study revealed that improving customer retention is one of the best ways to increase sales and enhance market value.
The first sale is always the hardest, and once the customer has made a purchase, you only need to do a little bit of convincing to get them to become to buy from you again. Focus on building a positive customer service exp
2. Seek referrals
One great way to attract new sales is to ask your existing client base for referrals. You already know that your customers like your products, and you can leverage that to access new customers.
They’re also your target audience, and they likely know someone that could be your target audience as well. If you feel iffy asking for referrals from your customers, you can have them do the work for you by giving them incentives such as discounts and freebies.
3. Manage your spending
Growth has to be sustainable. If your business is growing rapidly but overhead costs have exceeded your revenues, you won’t have enough money left for upgrades and improvements. It’s not real growth if you’re losing money every time you make a sale.
You need to pay close attention to your expenses and ensure that you’re making a profit. Check your overhead costs and make cuts where necessary. Maybe you’ve hired too many people, or your processes are too inefficient. If you want your business to get to the 10-year mark, you need to earn money. It’s that simple.
These things will help you sustain your company’s growth. Growth looks different from business to business, and it depends on a wide range of factors, such as the industry you’re in and the resources you have. Always put your customers first and try to keep your costs under control if you want to build a successful business.