5 Ideas for Growing Your Company
By TLB Contributing Author: Martin
Small business is the backbone of the American economy. Every year thousands of new companies are founded by entrepreneurs with a vision to see their business grow into a sustain=bale business that creates massive profits. However, the sad reality is that over 90% of these entrepreneurs will see their company fail before the end of its first year. For the lucky few that survive, only 10% of them will make it through the next five years in business.
With the statistics against them, some talented entrepreneurs still manage to defy the odds and pull their company through the start-up phase to find some stability. At this stage of the business life-cycle, it is not the time to take your foot off the gas pedal. The growth stage of your business plan has officially begun, let’s take a look at five ideas you can use to grow your company into further financial stability and sustainability.
#1 Increase Your Online Activities
Your business should be leveraging its online presence through your site and your social media accounts. Arrange a strategy session with an online marketing firm that can offer you a comprehensive online strategy that includes a full social media and SEO marketing plan.
#2 Open Another Business Location
Do you have a physical retail store? Loom for other locations around your city where you can open another store and replicate the success you made with the first one. Remember to focus on a prime location and competent staff to manage the new business.
#3 License Agreements for Your Products
License your product and have other people sell it for you. You will receive upfront licensing fees as well as commissions or royalties on all product sales by the licensees.
#4 Take Your Company Global
Speak to international business consultants and arrange to test your product in foreign markets. They will be able to tell you If your brand has the potential of going global and can expose your brand and product to potential partners and investors overseas.
#5 Merge and Acquire Competitors and Partners
The final and most comprehensive strategy would suit start-ups that have seen real success in their formative years. If your company has a large pile of cash to burn form its earnings, then use it to acquire competitors of partners in your market. Incorporate their best people and systems into your own company and strengthen your weak points using established business systems that produce results.
Adding Your Growth Strategy to Your Business Plan
Once you have decided on the most effective growth strategy for your business, it’s time to update your business plan. Most entrepreneurs create business plans in the initial phase of the company to seek finance and create a vision and mission for the firm followed with a comprehensive start-up plan. After the company’s launch, most entrepreneurs put the plan on the shelf and never look at it again. Your business plan should act as a steering wheel for your business. Steering you through the business landscape and staying true to your planned route.
Finding the Money for Your Growth Strategy
As a start-up, you probably do not have much of a credit score. Unfortunately, this means that big banks and financial institutions will want nothing to do with loaning your business the funds it needs to execute the growth strategy. Instead, you will need to find microlenders that can provide you with instant business loans bad credit aside.
Always make sure that you have run the terms of the loan agreement past your accountant to ensure that your company will be able to handle the financial pressure of the loan repayment. Never sign a loan agreement that you do not intend to repay. If you fail to meet your repayment obligations, you may damage the credit rating of your company.
The Final Word
Using these five strategies along with a prudent approach to acquiring your funding will help you achieve the results that you expect. Remember that this stage of the business life cycle is not going to be any easier than starting your company and it is wise to continue to seek the advice of your business mentors with your plans for growth.
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