Growth opportunities come in various forms. I see seven channels for growing your business.
You will waste much valuable time and energy if you don’t evaluate your growth options and determine which one is right for your organization.
1. Introduce new products to existing customers. This is always a good idea especially if your business has a long marketing cycle and a good reputation. Existing customers will purchase new good more readily than consumers who are unfamiliar with your company.
2. Increase control over the channels of distribution. You may spur growth by entering into a joint venture with a distributor, retailer, or exporter.
3. Acquire a competitor. Be aware that this can be a complex and arduous process. You may not get what you thought you were buying if key people at that company resign or retire.
4. Franchise or license. If your business can easily be replicated, it may be a candidate for these options.
5. Expand geographically. Find other regions that share similar demographic features with your current market. Use flexible office space to test your capacity to attract business in a new location. You will have to learn new laws, absorb costs, and network to make this
6. Diversify/specialize. Success breeds success. However, you could become known as someone who doesn’t excel at any one product or service. So, consider combining diversifications with specialization that will apply your areas of expertise to a similar range of products or markets.
7. Consolidate. Most businesses can’t sustain continuous growth. At some point, you must slow down and focus o core efficiencies. During these periods, you can realize growth from improved profits, reduced waste, controlled inventories, and decreased turnover.