The following article is a guest post.
If your business has managed to survive the competitive environment of its start-up phase, then you can reward yourself for being in the ten percent that make it.
Starting a business is a challenge; however, it’s just the beginning. Now that you have managed to achieve some stability in your cash flow and earnings, it’s time to look into ways to grow your business.
Every business model has its unique aspects that make it a valuable part of the local and global economy. But not every company will need to use the same growth strategies to achieve their business goals. Here are three growth strategies that can offer you a good return on your time and your capital, while growing your business into a sustainable, profitable company.
#1 SEO and Social Media Marketing.
Your business probably has a website, but are you using it effectively? Having an online presence does not mean owning a website that does nothing for you and a bunch of social media accounts with no following.
Hiring an SEO specialist will allow your site to feature in the top rankings of search engines and create more visibility for your brand online. Linking your site to authorities, improving the latency and building a reputation online takes a lot of time and effort, so make sure that you choose to work with a professional team.
Social media marketing has given businesses and brands a platform where they can directly access their target market. Facebook, Instagram, Twitter, and Snapchat have changed the way we communicate as a civilization.
Today, linking up with the right influencer on social media and sponsoring them to promote your brand or product can earn your accounts millions of new curious customers that are keen to buy your products because a person they trust on social recommends them.
#2 Open a Second Branch.
If you own a physical business location that trades to the local community, consider expanding your business to another part of town that could benefit from what your business has to offer. Make sure that you do as much research into your new location as you did with your original business.
The best part about this growth model is that it allows you to take what you learned in your first business and use the knowledge to drastically reduce the learning curve of your new location, reaching success faster.
#3 Merge with other Companies.
If your business has snowballed and you are flush with cash and potential investors, then consider buying out other company’s in your industry or related industries with a leveraged buyout (LBO). By acquiring or merging with other businesses, you can strengthen the weak areas of your business by using the resources and strengths of other companies.
Applying for Small Business Finance.
Small businesses tend to avoid credit wherever they can. This principle may seem like a prudent financial strategy when starting up, as debt can choke up your cash flow and ruin your business. However, as the firm has never applied for credit, it will have no credit history that will enable the company to apply for institutional finance. Big banks do not like to loan to small companies with bad credit because they see it as a risky investment. However, there are smaller micro lenders that will gladly take on the risk of your business expansion and give you a small business loan with bad credit.
Never take on debt that you cannot afford to repay, always speak to your accountant or financial advisor before signing any loan agreement as it could cost you your company if you default on the loan agreement.
The Final Word
Take these strategies and identify the one that resonates with your business. Form a plan and start executing on it.
One of the key characteristics of successful entrepreneurs is that they can make fast decisions and execute on them quickly. Time is money, and the sooner you decide on a growth strategy that suits your company, the faster the profits will start rolling in.