A small business is a privately owned corporation, partnership or sole proprietorship. It has fewer employees and less annual income than a regular-sized business or corporation. It doesn’t matter what type of small business you run you are intending to increase your sales and grow your revenue. That’s the reason why so many people are searching for how to grow a small business.
There is no easy strategy which fits all small business owners. But there are key strategies to use to grow your business. Don’t rush to expansion without a plan. Don’t hire too many employees and buy too much equipment before having the startup capital or the revenue.
Have a plan
Life is uncertain. Things done in life, and decisions taken in life can be right or wrong. But the probability to get done something right is easy when having a plan. Because there we can arrange a plan B if we get down from plan A. It is the same in business.
Being a small business owner you must have the plan to develop your business. Running a business with the intention only of earning profit never last long. Society should be benefitted from the item or the service you sell. If you sell a food item the item should not harm the customer’s health. Your plan should not include items that cause environmental pollution.
In my opinion, you should have a deep idea about;
- SWOT Analysis
- STP – Segmentation, Targeting, Positioning
- 4Ps of marketing – product, price, place and promotion
- 3Cs of marketing- Company, Customers and Competitors
Carry out a SWOT analysis
Here we are going to research strengths, weaknesses, opportunities and threats to the company. Every small business has its strengths and weaknesses. They are internal to the company. They are the things that you can change and have some control over. For example, your team members, your intellectual property and patents, and your location.
Opportunities and threats come from events outside of your business, in the wider market. Opportunities and threats can’t be changed. You can take precautions to avoid them. Competitors, raw material costs, and consumer shopping patterns are a few examples.
Consider STP (Segmentation, Targeting, Positioning)
The STP model is important when building marketing communications plans since it helps marketers to prioritize propositions and then develop and deliver customized and relevant messages to engage with diverse audiences. Market segmentation, market targeting, and product positioning make up the three steps of the funnel.
You want to identify a foundation for the segmentation of your target market during the research-based market segmentation phase. You also want to identify key traits that will distinguish each market segment from the others.
You must assess each segment’s potential and commercial attractiveness when developing your targeting and positioning strategy. You must then develop a detailed product positioning strategy for each segment you have chosen, as well as a customized marketing mix based on your understanding of that segment.
4ps of marketing (product, price, place and promotion)
The following points can be considered when paying attention to the product.
- What does the client’s requirements for the good or service? What requirements does it meet?
- What qualities must it have to fulfil these requirements?
- What features have you overlooked? Are you supplying the customer with expensive features they won’t use?
- Where and how will the client use it?
- How does it appear? What will buyers think about it?
- What should the size(s), colour (s), etc. be?
- What name should it have?
- What branding is used?
- How does it vary from goods made by your competitors?
- What is the highest amount that can be provided and yet be sold for enough profit?
These are the facts to pay attention to when considering the place.
- Where can customers find your goods or services?
- What sort of store will they search in? a specialized store, a grocery store, or both? Online? Or straight from a catalogue?
- How do you gain entry to the appropriate distribution channels?
- Do you need to hire salespeople? Or go to trade shows? Or submit content online? Or perhaps distribute samples to catalogue businesses?
- What do your competitors do, and how can you improve upon it or stand out?
These points can be taken into notice when pricing a product.
- How valuable is the good or service to the consumer?
- Exist recognized price points in this area for goods or services?
- Is the consumer price sensitive? Will a slight price cut increase your market share? Or will a slight increase be undetectable, giving you a larger profit margin?
- What discounts should be provided to business clients or other particular market segments?
- How will your price compare favourably against those of your competitors?
When promoting a product following points can be considered.
- Where and when can you reach your target market with marketing messages?
- Will you advertise online, in the media, on TV, radio, or on billboards to reach your audience? Utilizing mailshots for direct marketing? Utilizing PR? In the online world?
- When should promotions be made? Is the market subject to seasonality? Does the timing of your market launch or subsequent promotions depend on any larger environmental issues?
- How do your competitors’ promotions work? And how does that affect the promotional strategy you choose?
3Cs of marketing (Company, Customers and Competitors)
Company, customers and competitors are the 3Cs of marketing.
Your company should have answered the following questions.
- What is your vision?
- What is your strategy?
- What is your reputation?
- What is your culture?
When thinking of customers you can consider about following points.
- Who are your customers?
- Why do they buy from you?
- Any unmet needs of customers?
Competitors are one of the external factors. You have to have a good idea of the competitors to earn a good market share.
Who are your competitors?
Why do your competitors make sales?
How are you differentiated?
Besides the above facts, a small business owner must have a strong determination, and dedication to continue his business. Selling what society needs timely is the other fact to success. Surf the internet to gain knowledge of trending marketing facts. Read at least one page of a book per day. Read newspapers. Work on time. Get up early in the morning. Have healthy foods. Follow your religious teachings. These habits will make you an energetic, knowledgeable, reputed small business owner.
You may earn profits or losses. Sometimes you will get bankrupt. The important thing is patience and retrying to build up your business again. Every business comes out as a result of thoughts in one’s mind. When you are at a loss see the opportunities available there. Though your profit of the business gets down never give up the thought of being a success. Be relaxed, have a deep breath, meditate, purify your mind and generate new ideas to be a success in another way. A creative mind is a blessing. There are years of unsuccessful in every success story. Be a self-motivator. Good thoughts will drive you to success. Wish you good luck!