Companies of all sizes still face many challenges because, honestly, developing a successful business is easier said than done. Are you wondering how you can ensure that your business is sustainable? It would help if you created a growth strategy through a business analysis consultant for your company. If you don’t have a solid growth plan, you are increasing the chance of losing your business to your competitors. Remember that an effective growth strategy is more than simply visualizing long-term success. This article will review the different stages of business growth and how you can use business project management consulting to achieve long-term success.
Let’s begin by going through the five stages of business growth:
Every business goes through certain life cycle stages and experience specific problems requiring different solutions during business development. Understanding what stages you currently are in can make a significant difference in your business’s strategic planning.
Stage 1: The development stage
This stage is just the beginning stage whereinyou have a brilliant idea of starting a new business, ready to dive into the realm of newness. You need to test your business idea by
- Performing extensive market research
- Gather feedback from your friends and industry specialists to understand whether your idea is worth pursuing.
Stage 2: Startup stage
The startup stage is where your business is legal, and you have developed products/services your company offers and started marketing and selling them. The significant challenges at this stage are acquiring customers and delivering quality products or services. As most business analysis consultants claim, the strategy remains alive and becomes viable.
Stage 3: Survival stage
The business has enough customers and can add new ones at this stage. The firm may grow in its viability and size, compelling you to change your business model before expanding your business in the market.
Stage 4: Expansion stage
At this stage, the business is thriving, and it’s time to expand and find newer markets and distribution channels. So your business might need to add new products and services to sustain the rapid revenue growth. Businesses face a significant challenge in multiplying and finding the money for that growth.
Stage 5: Maturity stage
This final stage of the business life cycle is wherein the business dominates its market. When the company has adequate resources for detailed and strategic planning, it can be a powerful player if it maintains its entrepreneurial spirit. Business analysis consultant claims that entrepreneurs have two choices either expand further or exit the business.
Below mentioned is detailed information of business strategies followed by Rahy’s leading business analysis consultant to help you grow your business:
1. Market Penetration Strategy
Market penetration is one of the leading digital marketing and growth strategies in business. A small company utilizes a market penetration strategy when it decides to market existing products within the same market it has been using. According to strategic management consulting, the only way to grow is by using existing products and selling them to increase market share. Market share is the proportion of unit and dollar sales an organization holds within a distinctive market compared to all other competitors. One way to boost market share is by reducing prices.
2. Growth through Product development or diversification
There can be several reasons for an organization to consider a market expansion strategy. Growth strategies also include diversification; competition can be intense and overwhelming. It is impossible to grow within the current market, so most small companies sell new products to new markets. This type of strategy can be hazardous, according to Rahy’s business analysis consultant. A small company must carefully plan when using a diversification growth strategy. New applications or elements in a product can also assist in the business growth strategy. When technology changes and evolves, a product’s growth strategy performs well. At the same time, most businesses find taking this route riskier instead of relying heavily on consumer research and the market to ensure the product’s feasibility, desirability, and profitability.
This method is suitable for companies in their maturity stage. Most businesses often try to purchase already substantial companies operating in their target markets to expand operations. However, this effective method hinders upfront costs, but it’s a cost-effective way to seize a new market or even grow market share in the long run. To add value, you can get an established customer base and operation adjusted to your specific needs; this is an excellent strategy to expand your business into a new geographic location.
Do you want to know more about how your company can increase profit with reliable Growth Strategies? Get in touch with Rahy’s business analysis consultants today.