We’ve gathered ten expert-recommended tips for growing a small business that any company can benefit from at any stage. Whether you’re just getting your idea off the ground or working hard to scale, this advice can serve you and your team well.
1. Hire the Right Team
Want to know how to grow your small business? The first step is working with the right people.
Building a talented and dedicated team is the foundation of your company’s growth. Look for people with a passion for your industry and skills that complement your own. In addition, put together a diverse team to bring fresh perspectives to the table. Look for partners with experience in other fields, as well as team members with different backgrounds.
How to grow your small business by choosing the right team:
- Clearly defining job roles and expectations
- Conducting thorough interviews to assess both skills and cultural fit
- Offering competitive salaries and benefits
- Encouraging professional development opportunities
Examples: Take advantage of platforms like LinkedIn and Indeed for recruitment, implement team-building activities into your week-to-week routine, and provide ongoing training to help your employees grow.
2. Diversify Your Revenue Sources
Relying on a single income stream can be risky for a business owner. Explore different revenue channels, such as new products, services, or markets. This move not only helps you build financial stability but also positions your business for long-term success.
How to approach:
- Conducting market research to identify untapped opportunities
- Introducing new products or services
- Expanding into new geographical markets
- Partnering with other businesses for joint ventures
Examples: Think of a fitness app offering branded T-shirts, a local bakery catering to nearby offices on meeting days, or a tech support service expanding its reach to neighboring towns and cities.
3. Reduce Risk Through Financial Planning
Your company needs a robust financial plan that identifies potential risks and outlines strategies for handling obstacles. This plan can include steps toward establishing an emergency fund, diversifying investments, and maintaining a conservative approach to debt.
How to approach:
- Creating a detailed budget with contingencies
- Building an emergency fund for unforeseen expenses
- Regularly reviewing and adjusting financial goals
- Taking a conservative approach to debt
Examples: Routing a percentage of profits to the emergency fund, negotiating favorable terms with suppliers, and diversifying investments for stability are all ways your company can plan ahead for financial success.
4. Stay Active on Social Media
Leverage the power of social media to enhance your online presence! Use this powerful tool to tell a compelling brand story, engage with your audience, and use targeted marketing campaigns to reach potential customers.
How to approach:
- Create engaging content that aligns with your brand
- Use a consistent posting schedule on relevant platforms like Facebook, Instagram, and Linkedin
- Run targeted advertising campaigns based on audience insights
- Actively respond to customer feedback and inquiries through comments and messages
Examples: Instagram stories showcasing behind-the-scenes footage of your team, Facebook ads targeting specific demographics, and timely responses to customer reviews on Google My Business can all help you use social media to your advantage.
5. Aim for Exceptional Customer Service
Taking care of your customers leads to repeat business. Satisfied customers not only come back but also become advocates for your brand! Consistently seek feedback and make improvements based on what you hear from the people who support you.
How to approach:
- Prompt and personalized communication
- Implementing a customer loyalty program
- Looking for feedback and making improvements based on criticism
- Resolving customers’ issues with empathy and efficiency
Examples: Offering exclusive discounts to repeat customers, sending personalized thank-you notes, and using feedback to enhance product/service features are all ways to strengthen your rapport with customers.
6. Build an Effective Sales Funnel
Understanding your customer's journey from interest to making a purchase is one of the keys to growth. From awareness of your company to conversion, map out each stage and tailor your approach based on what you learn.
How to approach:
- Understanding customer pain points and needs
- Crafting compelling marketing messages for each stage
- Making the purchasing process simple and straightforward
- Paying attention to data analytics
Examples: Targeting specific demographics with tailored content, simplifying the online checkout process, and knowing your conversion and churn rates can help you build a better sales funnel.
7. Expanding Your Network
Networking is a powerful tool for growth, no matter what stage your company is in.
Build your network by attending industry events, joining online communities, and building relationships with other small business owners. These connections can lead to valuable partnerships and opportunities down the road.
How to approach:
- Attending industry conferences and events.
- Joining online forums and social media groups.
- Actively participating in discussions and sharing insights
- Looking for mentorship from experienced entrepreneurs
Example: Consider joining Reddit's small business subreddit for tips, community, and more.
8. Forming Strategic Partnerships
Look for businesses with complementary offerings to yours and see if you could collaborate with them! Strategic partnerships can expand your reach, enhance your offerings, and open new doors for growth.
How to approach:
- Assessing mutual benefits and goals with other companies
- Drafting clear partnership agreements
- Coordinating joint marketing efforts
- Regularly evaluating a partnership's success
Examples: A clothing store partnering with a local jewelry brand for cross-promotions, or a web development agency collaborating with a graphic design firm for comprehensive client solutions.
9. Diversify What You Offer
Depending on the market, you might see major growth if you broaden what your company offers. Diversification not only attracts a wider customer base but also helps you navigate changing market trends.
How to approach:
Adapt to market demands by:
- Monitoring industry trends and customer feedback
- Conducting surveys to identify potential new offerings
- Introducing limited-time promotions or bundles
- Getting input from your team on innovative ideas
Examples: A software company adding a mobile app to its suite, a catering service introducing themed menus, or a consulting firm expanding its services to include online courses are all examples of strategically adapting and diversifying.
10. Refine Your Small Business Growth Plan When Necessary
Regularly evaluate the effectiveness of your strategies using key performance indicators (KPIs). Use these insights to refine your approach, adapt to market changes, and set your company on the path of continued growth.
How to approach:
- Establishing key performance indicators (KPIs)
- Regularly analyzing data and feedback
- Adjusting strategies based on insights
- Staying informed about industry trends
Examples: Monitoring your website traffic and conversion rates, surveying customers for satisfaction feedback, and adjusting marketing strategies based on social media analytics are all simple ways to adjust your overall business strategy for growth.
Find the Financing You Need To Grow Your Small Business
How do you plan to grow your small business in the next five years? The best way to lock in growth might be acquiring funds. Take the next step in your growth journey by contacting us today! comparing which lender is the best fit for your small business funding needs.