Are you one of the over 500,000 entrepreneurs who have started a business in the U.S. this year?
Thumbs up for taking a bold step. Although America is a nation of small business owners, it doesn’t have a great record of small business success. About 20 percent of new businesses collapse in the first year and over 50 percent will close shop within 10 years.
The numbers don’t lie. It’s clear the odds are stacked against small entrepreneurs. This is probably why you’re here, wondering how to grow your small businesses and be successful.
The simple truth is it’s possible to build a wildly successful business. But you need the know-how. Read on for a handful of tips that, if implemented correctly, can help you transform your business.
1. Build a Team
About 80 percent of all U.S. small businesses are non-employers, which means they don’t have any employees. If you’ve recently started your business, it’s likely that it’s a one-man band. This is understandable since most entrepreneurs don’t have the budget to hire employees.
However, it’s impossible to grow a business without building a team of workers. As your business gets more customers, it’s prudent to set aside some of the revenues for hiring workers, instead of plowing it all back into inventory or marketing.
And, it’s not just about building a team. It’s also about starting that building process in good time.
Some business owners wait until the workload is evidently straining the business before recruiting someone to help out. If you let that happen, you could lose customers to your competitors because of inadequate customer service.
That being said, keep in mind that recruitment isn’t a walk in the park. Finding an employee who’s a good fit for your business requires you to know what to look for. Do you really have the time to juggle recruitment with running the business?
Smart business owners outsource recruitment to staffing agencies. When you do that, you’ll not only free up your time but also give your business the best chance of getting the best employees.
2. Increase Your Sales Channels
Every business owner has one primary goal: to make more sales.
There are several ways to pursue this goal, but one of the most effective is to increase your sales channels. This is to say, if your business is currently a physical store, it’s high time you started selling your product or service online.
And if you have an eCommerce-only business, perhaps you can supplement it with a brick-and-mortar store or start selling on multiple eCommerce platforms besides your website.
Though, as the world becomes a digital village, the vast majority of people are shopping online. Most of your sales focus should be on eCommerce.
Start by hiring professionals like those at Avenue 25 to develop a business or eCommerce website for you. This way, prospective customers will easily find your business when searching for products to buy on Google and other search engines.
3. Diversify Your Offerings
Selling your product on multiple channels will certainly have a positive impact on your sales, but it will reach a point where the growth will taper off. This is where diversifying your offerings comes in handy.
Think of it this way. You have 10 customers, and each one of them buys 1 item every month. Although you’re assured of the 10 sales, what can you do two make them buy two items? Offer them a new product!
However, don’t just introduce new products and services randomly expecting that your existing customers will buy them. Unless your goal is to attract a new customer base, your new offerings should complement your existing product.
For instance, if you’re selling eco-straws, there’s a great chance most of your customers are eco-conscious, so adding compostable party cups to your product line can be a smart move.
As always, be sure to do plenty of market research before bringing a new product to market. Understand the needs of your target customers and offer solutions that meet those needs.
4. Find Effective Ways to Retain Your Customers
Did you know it costs five times more to acquire a new customer than retain an existing customer?
Yet, some business owners are more willing to go all out and pursue new customers, often at the expense of the existing customers. Yes, customer acquisition is crucial to the success of any business, but if it’s at the cost of current customers, you’re not doing it right.
A bird in the hand is worth two in the bush, so it pays to focus on customer retention first. Happy and satisfied customers won’t just come back for repeat purchases. They’re also likely to recommend your business to their friends, earning you a new sale.
So, what can you do to retain customers? There are many strategies, including offering high-quality products and great customer service, but top on your list should be to implement a customer loyalty program.
Look, everyone loves a discount or promo. Buy two for the price of one? Even better!
A loyalty program that enables your customers to qualify for specific rewards for shopping with you is bound to be a hit, and they’ll love your business for that.
5. Go Social
Even at a time when seven in 10 people in America use social media, about 20 percent of small businesses still have no social media presence at all!
You might have valid reasons for keeping your brand off social media. Perhaps your business targets seniors, most of whom aren’t active social media users. Or you’re still reaching your sales target without social media.
However, remember growing your company is your main goal here. There’s no doubt social media can help you with that.
Start by picking the social media sites that are most relevant to your business. If you’re a clothing store, for example, Instagram is your home. If you’re targeting Gen Zers, you won’t need to look beyond TikTok and Snapchat.
Then, design and implement a content strategy. It’s of little value-creating to social media pages if you won’t be actively posting content and engaging with your followers.
In addition to growing your business’s reach on social media, some platforms will enable you to set up a store and sell your products.
6. Build Your Network as an Entrepreneur
You want to build a business that can exist on its own; something that can outlive you. For now, though, you and your business are inseparable. As such, don’t just focus on growing the business as an entity; focus on growing yourself as well.
One way to do that is to build your network. Attend industry conferences, trade shows, and others events to get an opportunity to hang out with other entrepreneurs and professionals. The networks you build can help you grow your business.
For example, imagine a situation where your business wants to expand into other markets but the capital required is so high. Instead of going it alone and risking your business finances, you can strike partnership deals with entrepreneurs in your network.
As you network, also remember to invest in your knowledge and skills. Take entrepreneurship courses whenever you can as they’ll make you a better business manager and leader.
7. Get Involved in the Community
A business cannot thrive in a community that’s not thriving. It’s for this reason organizations have a responsibility to support the communities in which they operate. And for that, they reap big.
Getting involved in the community will help your branding efforts. The locals will become more aware of your business and its operations. This can help you acquire new customers.
For many small business owners, though, the challenge is finding meaningful ways to get involved and impact the community. Operating on shoestring budgets, they end up shelving their community involvement plans altogether, consequently missing out on the benefits.
You don’t have to invest in grand community projects. The secret is doing what you can and getting good publicity.
For example, you can donate a few cents off every sale to a local charity that’s tackling the community’s most pressing issues. Honor this commitment and ensure it’s published on your social media pages and website. Soon enough, local newspapers will come calling.
How to Grow Your Small Business Simplified!
Business growth doesn’t come on a silver platter — at least not for many small business owners. You have to pursue it, and pour your blood and sweat.
Thankfully, it’s not always in vain. You can grow a business from nothing into a gigantic corporation. People have done it.
You can, too, but a lot will depend on your willingness to learn how to grow your small business and implement proven ideas.
