Growth Strategies for 2011

In the most basic of business models, there are just four ways for a business to increase its revenues:

• Sell more product to existing customers: “Do you want fries with that?”
• Sell more frequently to existing customers: i.e. book the next appointment before your customer leaves from the current one
• Increase prices (with much research and caution!)
• Find new customers to sell to: develop new customers

Some growth strategies that your business can consider for 2011 are:

1.Develop new target groups – tap into secondary and tertiary target customers you didn’t approach or focus on before (new messaging, pricing strategies etc. will need to be investigated)

2.Increase and enhance your marketing budget and efforts, keeping in mind these marketing principles:
•Know your target market – don’t try to sell to “everyone”
•7X Rule – you need to get your brand/message out seven times before it’s remembered (because of the overload of messages coming at us every day) therefore marketing efforts must be repetitive
•Marketing Tools: utilize at least 15 tools / year, including a variety of print, in person, electronic and promotions
•Marketing budget benchmark : During start-up year(s), plan to spend a minimum of 9-12% of your annual sales goal on marketing activities. Once established, spend 6-9% of annual sales goal on marketing. This is a very broad “rule” – adjust for your market, sector, customer, competitive situation etc.

3.Focus on high payoff products & services; reduce or eliminate efforts on low-margin items

4.Focus on high payoff customers; reduce or eliminate efforts spent on unreliable customers

5.Expand your geographical market, focusing on your primary customer types and best-sellers

6.Develop new uses for your product so you can sell more ie. bicycles are just for pleasure riding, but for exercise, commuting, courier services etc.

7.Leverage your existing customers by expanding your product/service line with new, related products/services

8.Develop strategic alliances so you don’t have to say “No, sorry, we don’t sell/do that” to potential customers
•Contra-marketing
•Subcontracting
•Paying commission on referrals

9.And finally: hire staff or subcontractors to perform routine tasks so you can focus on sales, marketing and other business development activities best in the hands of the business owner.