5 Business Growth Principles Every Entrepreneur Should Know

1. Plan For Success

Nearly everyone I speak to has a plan, but there are still too many businesses out there that lack a formal business plan, one that is written down and has had input from someone outside the business.

Why is this important for business growth? Well, as your business grows, so will your knowledge and experience. You will face many challenges and be presented with many opportunities, and it’s common to second guess yourself, become distracted and even demotivated.

As I explained in this recent blog, a good plan provides the foundation for operational management and the criteria for making important decisions. Any opportunities can be considered with reference to your Vision for the company and the Values you have signed up to.

At the same time, you measure your progress against a series of SMART goals, giving you confidence that you are on the right track, or allowing you to correct mistakes before they become problems.

2. Find Your Niche

It’s a common saying that you can’t be all things to all men. The simple fact is that your total market is made up of many types of customers, with different needs, perspectives and lifestyles. You must focus your attention and resources on one (or a few) specific groups of customers, or “niches”, for two reasons.

Firstly, you cannot market to all of these different niches in the same way, otherwise, your message will be too general and you won’t connect with anyone. Instead, research and learn as much as you can about your chosen niches, and tailor your marketing message – and your products or services – to their specific needs and wants.

In this way, your marketing will be more effective, and you should see improved customer satisfaction as you solve the specific problems that your customers have.

Secondly, not all of your niches are created equal. Some may be more profitable than others, or more easy to reach, or have a greater need for your services. Furthermore, researching the market may show you that the competition in a particular niche is fierce, while another is under-served. Which one do you want to target?

3. Craft Your Own Unique Message

One of the biggest mistakes made by business owners is that they do nothing to differentiate themselves from the competition. Your customers and potential customers have so much choice, from your competitors and alternative products and services.

In today’s market, it’s not enough just to be good (if it ever was). You must be able to quickly and clearly communicate what it is you do that is so unique and beneficial to your prospects.

Your Unique Selling Proposition (USP) is the one thing that differentiates your business from the competitors, in the minds of your clients and prospects. It’s what makes you stand out from the rest. Often your USP can be found in your business – you just need to articulate it in a way that makes you stand out from the crowd.

Your USP will be totally focused on your chosen niche, and if you have more than one niche, that USP will most likely need to be varied for each.

4. Sell To Your Existing Customer Base

If you have been in business for a few years or more, you probably have a valuable asset in your business. It does not appear on any balance sheet, but it can be the driving force behind any business growth strategy.

What am I talking about? Your database of present and past customers. After all, it is far cheaper to sell to existing customers than to win new ones. Yet so many businesses are completely focused on getting new business and have no strategies for selling to their existing customer base. You spend so much time and effort (and money) winning them over in the first place – don’t you think it’s mad just to let them ride off into the sunset and into the arms of a competitor?!

Your past customers have already done business with you, which means (hopefully) that they are satisfied with your products and services. You have jumped over all of the hurdles that exist in the selling process, won their trust and developed a potentially long-term relationship. Now you need to nurture that relationship with excellent customer service and regular follow-ups.

5. Develop Multiple Marketing Strategies

A stool needs three legs to stand on its own. Four would be better, but two won’t work at all. Your advertising system is the same – if you only have one or two methods of generating sales, what happens if one of these stops working?

Let’s use the Parthenon in Athens as an analogy. Think of the roof as revenue and the pillars as marketing channels. If you only have one or two channels, the roof is likely to fall over, and with it your business – or, at least, your business growth goals for the year.

Many business owners I speak to get business through referrals. That’s excellent, and suggests high levels of customer satisfaction and loyalty, but do you want to be dependent on that alone?

Even if your business is doing well now with just one single marketing channel, it makes sense to establish more avenues for sales revenue. You’re simply not unleashing the true potential of your business with just one or two methods of bringing in revenue.