There are various ways entrepreneurs can grow their businesses, such as introducing new products, upselling to existing customers, entering different markets, and more. Regardless of the option you choose, remember to focus on the long term rather than chasing short-term gains. Additionally, you’ll need to create a comprehensive plan for each step and set time-bound goals. In this article, we’ll explore five of the best growth strategies entrepreneurs can implement for their businesses.
Find Funding for Expansion
Obtaining the necessary resources to expand your business is a goal many entrepreneurs strive for, but it can often be difficult. Securing a loan or credit line from a financial institution is usually the first step to funding expansion projects, but having an excellent credit score is paramount for approval. Business owners should do their best to cultivate strong personal finances and keep their credit score as high as possible, as this is one of the basic criteria lenders look out for. If you fail to meet these requirements, many alternative options like venture capital exist so don’t let it stop you from achieving your business goals!
Start Using a CRM
As the business grows it’ll generate exponentially more customer data than before. Manually tracking this data through excel sheets will prove to be futile as the process will be tedious and riddled with human error. Additionally, your employees will spend most of their time managing data rather than focusing on projects of higher importance.
Implementing a customer relationship management (CRM) tool will streamline the process of data collection, segmentation, and analysis. A CRM can easily be integrated with your website, through which all customer data will consistently be stored in a centralized database. Additionally, the tool will be useful for all departments in the following ways:
- The marketing team can use CRM to create customer segments and design targeted campaigns for each, increasing engagement and conversions.
- Your sales team will utilize the CRM to keep track of leads and identify patterns through which customers with the highest chance of conversion will be contacted first.
- The customer service team can set up a ticket system within the CRM tool to filter customer queries based on urgency and ensure they are responded to promptly.
Create a Sales Funnel
As reported by HubSpot, a minimum of eight touchpoints are needed to make a sale. But, these touch points need to be strategically planned using a sales funnel.
A sales funnel is the journey through which a business convinces customers to make a purchase. The stages of a sales funnel are commonly described as AIDA, which stands for – awareness, interest, decision, and action. Here’s an example of a sales funnel in action:
- Awareness: You run an Instagram marketing campaign to promote a new product. On clicking the advertisement, users are directed to a landing page on your website.
- Interest: The page should include all relevant information regarding the product. Consider using interactive elements such as pictures, videos, etc., to hold customer attention. Additionally, direct them to take an action other than purchasing, such as signing up for your email list or creating an account.
- Decision: Once you have a lead, consistently share additional information related to your product through email newsletters, sales calls, and more. Highlight how your product solves customer pain points that lead them towards making the decision to purchase.
- Action: Convinced by your marketing/sales efforts, the customers will proceed to make a purchase!
Expand Your Team
As the business grows, so will the workload and efficient utilization of manpower will become a key pillar of growth for your business. Overburdening current employees will lead to lower productivity and dissatisfaction in the long run. Conversely, hiring experienced professionals in areas where you lack expertise and manpower will fuel business growth and lead to the timely fulfillment of goals.
As reported by the Chamber of Commerce, if your budget doesn’t allow hiring full-time employees, consider hiring freelancers on a part-time basis. For instance, hire a data analyst to manage your increasing data-based needs, such as managing data sets, conducting analysis, and creating performance reports.
Establish a Limited Liability Company
If your company is considered a sole proprietorship, register it as a Limited Liability Company at the earliest. An LLC establishes the company as a separate legal entity, protecting the owner’s personal assets from all business-related liabilities. Additionally, an LLC will allow you to save thousands of dollars in tax breaks as you’ll be able to write off certain business expenses. Interested in forming an LLC? BestLLCServices.com reviews offer more details on the best formation services.
Growth is always an exciting time for businesses but brings its own set of challenges as well. Leverage technological solutions to overcome these challenges and streamline processes. Additionally, establish an LLC as it is a stable structure with numerous benefits for you and the business.
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