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4 Growth Strategies Small Businesses Should Consider

Eventually you may determine you want your small business to expand into a big business. If this is true, learn what big-business growth strategies would work for you. Here include 4 big-business growth strategies that small businesses may find useful. Not all strategies will work for your situation, yet some of them may provide an opportunity for your company.

Market segmentation

This just means choosing a sub-set of the whole marketplace which you will organize your sales efforts around. Of all the consumers in the universe, who are you going to attempt to sell to?

Many big businesses are great at carving out their space in the market. They will do whatever it takes to own that corner.

Pepsi was losing its fight with Coke to be the heavyweight cola business. Rather than attempting to beat Coca-Cola at its own game, the company concentrated on a fun-loving, young demographic. Most Pepsi commercials display celebrities, younger music stars, or additional young status symbols.

Pepsi, in other words, stopped targeting the 30+ crowd, and instead, segmented its marketplace. Coca-Cola still remains the top dog, yet thanks mostly to marketplace segmentation, Pepsi built an extremely successful brand, as well.

Many owners of small businesses would be glad with building the next Pepsi, yet most are frightened of eliminating part of a possible marketplace. It may seem scary; however, you must concentrate on the core customer if you have a desire for a clear road to expansion.

Leveraging partnerships

Some owners of small businesses like complaining about how they cannot compete with vendor relationships the big guys appreciate. It may be a fact that you cannot, ‘pay to play,’ with the likes of the Fortune 500s, yet you may still leverage and garner partnerships in a savvy way.

For instance, let us say your company makes tennis balls and you possess a technology which makes them last longer and bounce better. You have an outstanding product; however, you do not have the manufacturing center, distribution network, or any of the additional portions of the tennis ball supply chain. All that you have are fantastic tennis balls.

You might not have the ability to compete with the major industry players such as Prince, Penn, or Wilson for tournament partnerships or sponsorships, yet you may partner with a distribution company and a tennis ball factory. As a matter of fact, you may partner with them without paying any money for your own distribution or factory. Merely pay your partners a part of the profit each time you sell one of the tennis balls.

The result? You’ll negotiate for mainstream distribution and production without having to pay the massive upfront cost of constructing a plant or employing a shipping company. You will then be able to concentrate on selling tennis balls rather than being concerned about making them.

Big business tends to pay for partnerships up front. A small business must negotiate for partnerships which pay per sale.

Make Use of checklists

Large businesses own huge facilities, large equipment, and complex supply chains. Managing the daily operations in those environments is too complicated for a single individual. There can be too many variables for the business to keep track of.

And guess what? Small businesses can have the same potential issues. Owners of small businesses must dress in many hats. If you do not hold yourself accountable, as well as remind yourself to perform something which ‘brings home the bacon,’ it is simple to be caught up performing operations and duties which are not requisite to the operation. In the busy-ness of a normal day, it also is simple to forget to do an essential task.

Acquisitions

First off, acquisitions can be tough. You easily can break the bank with a single bad purchase. This said, acquisitions may be a huge profit source and means to expansion if you make some responsible key moves.

You know what a good buy is within your field. Follow tip number 3, (make use of checklists), and keep to a certain list of characteristics you are looking for. Do not allow ego or emotion to play a part in a major purchase. Stick with your checklist, especially in times of emotional acquisition issues and temptations.

Do you have the money to buy up everybody in your industry? Probably not. However, you can afford some companies, particularly if there is one which you may improve. Do not dismiss acquisitions merely because you are small.