2. The key takeaway here is to provide a solution that solves a real problem, be visible to your user base through sponsoring events they attend, and incentivizing sellers to register on your app! A business development strategy is a document that describes the strategy you will use to accomplish that goal. You could also differentiate your company through the exact way you do your marketing — by making your value proposition more attractive and consistently appealing to potential customers. Learn how to perform a SWOT analysis. Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. HubSpot uses the information you provide to us to contact you about our relevant content, products, and services. After you’ve chosen what you want to grow, you’ll need to justify why you want to grow in this area (and if growth is even possible). The $1B price tag may have seemed exorbitant in 2012, but looks almost cheap today. Examples of successful growth strategies The second approach is to penetrate a market with something unique. From just 8,000 users at launch in 2013, Slack hit one million daily active users in late 2015. Here are five growth strategies that small businesses should consider. Again – we suggest writing out a detailed growth strategy plan to gain the understanding and buy-in of your team. And most importantly, it’s critical to your company’s overall direction and success. Today, the service boasts over 10 million DAUs. In this case, the "milestones" were X number of referred friends. Growth Strategies Sumit Kumar Rai Balbodh Chauhan A. Koti Reddy 2. Business growth is an increase in the gross revenue of a business. A concrete growth strategy is more than a marketing strategy, it's a crucial cog in your business machine. Uber also sponsored several tech events and provided free rides to their users in their early days. They also handed out fliers, discussed the app with prospects in coffee shops, and stopped people on the street to demonstrate the application’s value. An additional 500MB for every friend they successfully refer, allowing users to get up to 16GB for free. Eventually you want your small business to grow into a big business, right? Market penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. They also received a referral link to share via email, Facebook, and Twitter. You might remember when Dollar Shave Club burst on the scene in 2012 with the promise of high quality, affordable blades delivered right to your door. Market penetration is probably the first – almost default – option of small businesses hoping to grow and expand their operations. There are 4 main growth strategies that a business can use which include. Business growth can result from the marketing, innovation and operations of an organization. Free and premium plans, Content management system software. But how did Slack do it? Both retailers complement each other simply by virtue of having the same target market. Dropbox works on a freemium to premium model, offering all users 2GB of storage with a free account. That marked an impressive uplift from the 2017 figures of 46% and 9%, respectively. Marketing automation software. Diversification strategy, as we already know, is a business growth strategy identified by a company developing new products in new markets. Written by Sujan Patel When looking to generate a business growth strategy, the following roadmap can get you started. Strategy is focus. Let’s dig a little deeper into the types of business growth strategies out there. The number of listings on their platform grew from 50,000 to 550,000 in just 3 years! It is today the most fully integrated company in the world (from petroleum exploration to textiles retailing). Currently, Dropbox boasts over 500 million users worldwide. An organic-growth program also requires a clear understanding of how each strategy (investing, creating, and performing) can change a business’s growth trajectory. From legacy Fortune 100 institutions to inventive start-ups, Ryan brings extensive experience with a wide range of B2B clients. He skillfully architects and manages the delivery of integrated marketing programs, and believes strongly in strategy, not just tactics, that effectively align sales and marketing teams within organizations. Business growth plans provide a timeline for the next one to two years on how revenue can increase. This works best in a scenario where there are no new products, and there are no new markets to enter. Even Slack's leadership team was blown away by the success of its word-of-mouth approach. At the top of pyramid one, imagine a … Scenario. Data strategy roadmap There are four basic growth strategies you can employ to expand your business: market penetration, product development, market expansion and diversification. See all integrations. Growth strategy 1. They’ll release a new iPhone every year, with the new model being a whole lot more powerful than the last one, which keeps Apple customers coming back to buy the newest release. The merger or acquisition of new business operations. For example, growing your unit sales will result in a growth in revenue, and possibly additional locations and headcount to support the increased sales. In this scenario, you grow by serving underserved or unserved customers. Growth strategy is a strategy to win increasing market shares so that the business is always on a growing trajectory. Business Strategy. But business growth does not happen accidentally; it's the result of strategic initiatives. Vertical diversification The company enters the sector of its suppliers or of its customers.For example, if you have a company that does reconstruction of houses and offices and you start selling paints and other construction materials for use in this business. There are several types of business growth strategies. Try learning from the most successful companies. Financial Growth: To exceed $10 million in the next 10 years. In the most simple light, a growth strategy is a few tactics or a plan of action you use to grow your company revenue and market share. New product development, product line extension, or a product reformulation/retooling are a few ways you can look to expand your offerings and thus grow your sales. Another growth strategy you can utilize is to capture an entirely new market share. Key components of the business plan for strategic growth: Strategy; Execution; Milestones and metrics; Essential business numbers; Let’s look at each of these. Expanding purchase locations (i.e. Introduce a Double-Edged Referral Hack. They work for it. Without one, you're at the mercy of a fickle consumer base and market fluctuations. But it’s important you’re not just solely growing the number of customers or revenue, but also keeping your costs under control for making your growth sustainable in the long term. In the beginning, Slack made itself available to large, established companies like Rdio and Flickr, generating plenty of early press coverage. In case the business has multiple growth strategies, each strategy must respond to all of the above mentioned dimensions. Grow shareholder value: The top goal of your organization may be to increase the value of your organization for your shareholders, stakeholders, or owners. Examples might include: With all of your planning, resourcing, and goal-setting complete, you’re now ready to execute your company growth plan and deliver results for the business. Think you know customer segmentation? You’ve just got to test different growth strategies to find the one that works best for you. This action plan should contain a list of action items, deadlines, teams or persons responsible, and resources for attaining your growth goal. They gained their initial short-term traction by poaching traffic from Craigslist, through creating listings on their platform that led to their website. That definition tells us what diversification strategy is, but it doesn’t provide any valuable insight into why it’s an ideal business growth strategy for some companies or how it’s implemented. In this strategy, you can grow your market share by collaborating with complementary businesses. Amazon. It takes time, and it involves learning your internal processes even better to find … Which brings us to step four…. You may unsubscribe from these communications at any time. Moving your growth journey forward in a structured way will sidestep a common trap that we have observed: pushing growth and product initiatives almost haphazardly in hopes of jump-starting a strategy. Set … Business strategy defines the approach, ... corner the fledgling mobile image sharing market, and b) hedge its bets for future growth. A growth strategy is a plan to increase revenue. hbspt.cta._relativeUrls=true;hbspt.cta.load(53, '5f39f863-0316-486f-a5f3-849d76490a30', {}); Growth strategy allows companies to expand their business. The unique feature about your company or offering could be accomplished through price differentiation — where you lower your prices more than your competitors to grab their market share or where you raise your prices higher than your competitors to capture a completely new segment of a market. Developing a good growth strategy is not a one-size-fits-all process. That definition tells us what diversification strategy is, but it doesn’t provide any valuable insight into why it’s an ideal business growth strategy for some companies or how it’s implemented. They simply replicated the same strategy for different cities and hacked their way to becoming a huge startup success. The captain of the Peerless II knows a lot about fishing. We're committed to your privacy. A business development strategy plan mainly focuses on the identification of the business development strategy that the company can use. Once you’ve determined what you’re growing and why you’re growing, the next step is to determine how much you’ll be growing. Put your focus on building an email list. Diversification strategy, as we already know, is a business growth strategy identified by a company developing new products in new markets. Those numbers are remarkably consistent across most industries — but they also highlight how important it is to plan for growth from day one. Nu Shu sells handmade sneakers, and its current biggest audience is millennials. Sponsoring events with startup investors, techies and other startup enthusiasts sparked off their growth through positive word of mouth they got from these high-profile folks. The secret of word-of-mouth’s effectiveness lies in a deeply rooted psychological bias all people have — we subconsciously believe the majority knows better. Expansion of current office, retail, and/or warehouse space. Office supply stores, for example, have been very successful at catering to the needs of individuals as well as small-business owners. The company focused on user satisfaction above all, answering thousands of help tickets and tweets each month. Growth platforms are specifically named initiatives selected by a business organization to fuel revenue and earnings growth. Instead, companies need a more deliberate, stepwise approach to building growth initiatives and capabilities. Get creative, but not just for its sake alone; take a look at what your customers really want, need, and are willing to pay for. Internal growth (or organic growth) is when a business expands its own operations by relying on developing its own internal resources and capabilities. A good example of successful growth is Away, a luggage manufacturer and retailer. That's a pretty stellar growth metric. You could also choose to come up with an entirely new product for the exact same target market. These are the core questions, answering which businesses end up in successful Business growth strategies. We recommend downloading this free Growth Strategy Template and working off the included section prompts to outline your intended process for growth in your organization. The whole idea is for you to work out a win-win situation with your complimentary partner, so you can support each other’s growth goals. Quite simply, if you’re looking to ‘hack your growth’, help your sellers do their job well, so you solve their problems and attract users to buy from them. 10 Marketing Strategies to Fuel Your Business Growth You need more than one strategy. Coca-Cola launched Diet Coke Sweetened with Splenda. These goals should be based on your endgame aspirations of where you ideally want your organization to be, but they should also be achievable and realistic – which is why setting a goal based on industry research is so valuable. They spoke about Uber on blogs, social media, and parties, stimulating viral growth! Increased scale of operations Enhanced utilization of resources Ultimately to increase the size. This attention to customer service led directly to positive word-of-mouth amongst its early adopters. This grows your customer base, and market share on an international scale, helping you become a global player in your niche. Unlike a regular business plan, a growth plan focuses specifically on growth opportunities. 83% of Americans say a recommendation from a friend or family member makes them more likely to purchase or try a product, and 50% would go with word-of-mouth if they could only choose one source of information. Your business growth plan should hone in on specific areas of growth. In this article, we will define strategic goals, give examples of different types of strategic goals and explore how you can implement strategic goals in … Creating a Strategic Growth Plan. Examples might include: Funding: Organizations may need a capital investment or an internal budget allocation to see this project through. Want to Achieve?? You’ll learn a ton, build better relationships with your customers, possibly setting your growth trajectory on fire. But business growth does not happen accidentally; it's the result of strategic initiatives. A business strategy, in most cases, doesn't follow a linear path, and execution will help shape it along the way. In other cases, it might involve reaching into new markets or developing new products. ... Let’s look at a couple of examples of this business strategy. And it’s for good reason – conversion rate is everything for a business that operates... Join our newsletter to get our insights before anyone else. Strategy is what you’re not doing. That’s right, they physically went to various university campuses and created a buzz around their app so people would sign up and start using it. AirBnb’s growth strategies included hiring a professional photographer to capture listings. Point of comment: In the fast expanding economies of today, adoption of growth strategies by business enterprises is a must for the survival, in the long-run; lest they should be swept away by environmental influences, especially competition, technology and governmental regulations. The business plan for strategic growth is one of my favorites because it’s about core business decisions, steps, metrics, and making things happen. Build your own business intelligence roadmap with our ready-to-use template (just like above ☝️). Read how top marketers personalize their company's website in 2020. differentiate your company through the exact way you do your marketing. It’s not about explaining or defending a business for outsiders. Sequencing the growth journey. They earn it. Build a personalized website experience for every visitor. China mobiles enter in … 3. The service hit its million users milestone by April 2009, doubled that figure only five months later, and made it to three million just two months after that. Over 1.2 billion monthly active users can vouch for that. Highlight what you find, and get users talking. Repositioning and efficiency—Under this strategy, you target growth in your profit margin by repositioning your products or improving your efficiency. Addition of new locations or branches of your business. Trees Don't Grow To The Sky. This set the course for Tinder to be carried by word of mouth. To assist you to outgrow your potential, leverage the following business growth strategies in order to expand your horizon and increase profits sharply. Dropbox knew it had a premium product that everyone from students to executives would find invaluable. A growth strategy involves more than simply envisioning long-term success. Product development; Market Penetration; Market Development; Diversification; Growth strategy falls under the purview of strategic planning which charts out the roadmap for the future growth of the business. If Tinder is any indication, putting boots on the ground and personally interfacing with potential customers can be a great way to get your business the traction it needs to get going. Viral loops are not guaranteed to go viral, and they’ve become less effective as they’ve become more commonplace. Technology is a powerful tool for deploying business growth strategies. Depending on the kind of company you're building, your growth strategy might include aspects like: Your particular industry and target market will influence your decisions, but it's almost universally true that new customer acquisition will play a sizable role. The best way to start a growth plan is by estimating the growth “gap” that we need to fill in with new businesses. Don’t hit the ground running without planning out and documenting the steps for your growth strategy. Not every strategy will be right for your situation, but some of these might offer an opportunity for your business. But she also knows a lot about business growth strategies. Stay up to date with the latest marketing, sales, and service tips and news. You’d think they would’ve had to spend a fortune trying to drive user adoption in their early days, but that’s far from the truth. And it worked. That's why Slack focused on positive user experience to grow its base of satisfied customers and the wave of loyal feedback that comes with them. 1. tech enthusiasts and Apple loyalists). Your growth strategy entails more than just demonstrating how your revenue will grow. As a SaaS company, growth and profitability go hand in hand for company success. This is a prime example of how these big companies were able to leverage partnerships as a growth strategy. Of course, you’ll need to research your market and the documentation will take some time but the upfront investment will pay off in the long run. Examples of successful growth strategies 1. For more information, check out our privacy policy. To do so, they used a smart growth strategy by incentivizing referrals to grow their customer base, which increased new signups by 60%. Running a small business can be an all-consuming task. Strategy can be as simple as a list of bullet points, or brief descriptions, or even a series of photos. Tinder is the dating app that matches you with people near you to date. Product not modified; expansion to US increased market potential. One way to grow is by developing a current or new product in order to meet or exceed customer expectations. When it comes to key growth hacking strategies, Dropbox’s referral scheme will always come to mind. (Get ideas from these examples, but copying and pasting won’t work!) It’s clear that referrals instill trust in new customers to sign up for a new service. As growth entails risk, especially in a dynamic economy, a growth strategy might be described as a safest policy of growth-maximising gains and minimising risk and untoward consequences. It defines what the business needs to do to reach its goals, which can help guide the decision-making process for hiring and resource allocation. But the potential is still there. Increase credibility and boost conversions with social proof. Tinder is one of the most — if not the most — prominent dating applications available. Growth can be achieved by practices like adding new locations, investing in customer acquisition, or expanding a product line. which nearly tripled their user bookings and doubled Airbnb’s revenue within a month from NYC! Store ) established companies like Rdio and Flickr, generating plenty of early press coverage come! 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