Top Company’s Expansion Strategies to Apply to Your Own Business

A business growth strategy is essential to take your business to the next level. Whether you want to improve your customer base or add locations, business growth may require a combination of time, corporate finance, and careful planning.

Before you started your small business, you had already probably accomplished market research to ensure that there was enough sufficient reason to bring your idea to life. As you plan to grow, it’s necessary to continue your research and understand the changes in the market.

Market development is an approach that leverages market segmentation to seek out potential customers within your current market. It’s meant to aid you in evaluating a new segment with your current offers or lead to product development to reach new customer types.

You can reference other companies for ideas if you’re still finding it difficult to develop a plan for business growth. Here are some business growth strategies used by successful companies.

Business growth through franchising. Via franchising, you can create a successful operation and sell it to people who operate their version of your business. It’s an effective way to expand and acquire more revenue streams for your company.

Many fast-food companies leverage franchising to grow their business. The franchising process is a key part of many restaurants’ (McDonald’s, Burger King, KFC, etc.) growth strategy, with locations operating as a franchise. Companies make money from franchises through:

  • Royalties
  • Monthly fees
  • Rent

You need to make sure you have a franchisable business before growing your business this way. Certain businesses are easier to franchise, like restaurants, gyms, and shops. You’ll have to meet the requirements for franchising a business if you fit the criteria. This includes giving information to franchisees so they can create an informed purchase decision.

Don’t panic if you find that it doesn’t make sense to franchise your business. There are alternatives to franchising that will aid your business to grow, such as licensing ownership. This arrangement means selling the rights to use your business’ logo and trademark to others.

Referral-based business growth strategy

Word-of-mouth marketing is a tested strategy to assist businesses’ growth. Referral marketing is also a type of word-of-mouth marketing that rewards present customers for bringing in new customers.

Referral marketing is common among subscription-based businesses. If you’re looking to use referral marketing to aid in your business growth, you’ll need to offer a valuable reward for your customers. Track your referral program’s progress. If you find that your customers aren’t taking advantage of it, you may need to make changes to encourage participation.

Global business growth strategy

Based on Brookings Institution, just over 50% of the world’s population is middle class. That’s about 3.8 billion people with purchasing power. This is a big opportunity to bring your products and services to a new target market.

Your business can reach potential customers around the world through export. One of the biggest benefits of exporting a business is the chance to reach new customers with a product or service.

If you’re ready to begin taking your business global, you’ll want to find export opportunities. It may be wise to visit trade fairs to find potential customers. It’s important to have a trading partner sign an exporting contract to protect your business and assets. You can get a corporate finance loan if you need help financing your exports.

While top companies have found success using the different growth strategies above, finding the right plan that works for you can take time. You may encounter difficulties in your journey to find a successful strategy to grow your business. Stay on the course and regularly review your business plan to help accelerate business growth.

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