Business Growth Strategies To Increase Revenues
After a difficult two years, and maybe another challenging year coming up, it may be time to update your current strategy
or create a new strategy to help deliver revenues and profits.
These 7 effective business growth strategies to increase revenues can help you do that.
Your business strategy covers much more than revenues; no one would read a blog that long.
So the focus here is on business growth strategies that create revenues.
Before we get started, a word of caution, because of the current economic situation and rising inflation, you have to put all of these strategies in perspective.
You may have to cut some expenses to raise money to implement new strategies, these strategies,
Also, it’s essential to focus on your long-term goals. All right, let’s get started.
1. Increase Market Share Or Market Penetration
Of course, the way to do this is to keep trying to sell more products or services to your existing market.
Go back to your basic strategy model and reevaluate the initial assumptions you used to create your strategy.
But, do it for a positive analysis (how may I increase sales to our market?),
and Don’t use a negative statement (why can’t I increase sales to our market?). You are looking for new answers, not excuses.
For example, you might consider adding additional products or services.
Focus on a few products and increase the promotional budget on other products.
You can lower your costs on some products and use the savings to invest in other products.
You can also resegment your markets with a special offer, maybe find different suppliers, can you improve any of your current products, and more.
2. Develop New Markets
Developing new markets is an excellent way to expand your revenues.
Not easy, but worth the time it takes to analyze the opportunities.
Looking for new markets should be something constantly on your radar.
Anticipating future events and changes is a powerful way to leverage your growth strategy.
For example, Chan Kim and Renee Mauborgne’s book, “Blue Ocean Strategy,”
an analysis where you make a graph isolating each prominent feature of your company and your major competitors and the value customers put on each element.
This analysis quickly visualizes the differences between you and your competitors and should give you some food for thought.
You should get ideas on where to be more competitive and areas that may be open to new product entrants into the market.
3. Alternative Channels
You may already use different channels like LinkedIn, Facebook, Instagram, Twitter, and others.
Many other channels are now available, and the list is growing, including Parlor, Substack, and individual platforms.
Also, there are podcasts on every topic you can think of, and most are looking for people to talk to be on the show.
Remember, however, that each of these additional channels will take a considerable time for you to use,
respond to and create material for use on the channel.
So, keep the number of channels in line with your available time.
4. Product expansion
Product expansion is a great way to get additional penetration into existing and new markets.
Maybe it’s time to explore some of the product or service ideas you have thought about for some time.
Also, you can use “creative design” to develop many new products or services.
You may not be able to think about new products and instantly come up with some ideas,
but you can use creative thinking tools.
For example, anyone can use the “random word” tool and generate many ideas in minutes.
You pose a positive question and then use a random word (a noun) and apply the characteristics of that word to your positive question.
More information on this tool is available on our website and blog.
If you want to explore new products or services with a group of employees, you could use the “six hats” creative tool,
which is designed for groups and is much more effective than the old “brainstorming” technique.
You can also find more information about this innovative tool on our website and blog.
These creative tools are from Edward de Bono’s many books on creative thinking.
5. Market Segmentation
There is more to market segmentation than demographics.
Market segmentation is another practical possibility to achieve your business growth strategy.
If your market is large, you can use a different lens to look for new areas within that market,
like product purchases that go together, levels of usage, or psychographics or mindsets.
If your market is small, you may be able to divide it into even smaller markets
or “splinter” markets by the customers’ own perceived product value.
For example, the auto industry is large but divided into many niche markets.
But, within these niche markets (e.g.luxury cars), there are splinter markets (they still have to be large enough to be profitable).
Think BMW, a luxury car for special people that want the “ultimate driving machine.”
Of course, you have to deliver that promise.
So, the entire company must sync with the strategy to deliver the promise.
And with a strategy, everyone should be in sync with the strategy.
Remember, your business growth strategy is your story, and marketing is how you tell your story.
Strategic Partnerships
Joining forces with other companies is one way to expand your reach and product capabilities.
Theis relationship should benefit both companies.
It could also be for reasons other than sales. You could get skills and resources that you don’t have and could use.
You could also go to act.com for additional information on the administration of working with many people.
This partnership could also be for sales. For example, you could exchange client lists or referrals to companies
with complementary products or services.
You are not in competition with each other; you complement each other.
Market Disruption
Market disruption means introducing a new product into a new market.
This idea started with Clayton Christensen and the concept of entering a new market with an inexpensive product and limited functionality.
The large companies would ignore this new company because of its limited functions and low price, meaning no margin.
Then, the new company starts adding additional functions and value and, at the same time,
keeps getting more and more of the market.
Done right, in time, the company will become a significant player in the market.
Other business growth strategies
There are some other strategies out there that are more limited to specific kinds of businesses.
In other blog posts, we will write about these (like franchising and licensing deals).
Conclusion
The 7 effective growth strategies to increase revenues listed above are some of the ways you can become a more robust and profitable company
— especially in the challenging years ahead.
To stay on top of your market, it would be best if you continued updating your strategy
and anticipating new trends and opportunities to improve your business growth strategies.
Jim Zitek
PS. You might also be interested in our blog: Why your business growth strategy is your story
PPS. Also, check out: How To Turn Negative Problems Into Positive Results.
If you want to update your current strategy and need to create a new strategy, go to our website.
You can get started today for only $39 per month for three team members and no contract.
