According to statistics, many small businesses collapse during the first five years, and just one out of every three survives for ten years. While these figures are distressing, they are not hopeless.
There is always a risk when establishing a business, but there are steps you can take to improve your chances of success.
Knowing what stage of growth your company is in and having the correct business growth tactics will help it survive and thrive. The followings are growth strategies for small business owners;
1) Expand Your Market Capacity
Market penetration is undoubtedly the most critical for the long-term success of small businesses.
It's a strategy for expanding your business by increasing sales among existing customers.
This method will assist you in increasing sales in your present market.
2) Explore alternative channels
Finding new ways to sell your items can be great for your small business to expand, especially if your existing market is crowded.
You can use internet platforms to market and sell your products depending on the type of product/service you have.
Look for ways to upsell and cross-sell to customers so they can buy more each time they buy.
3) Focus on Market Segmentation
Small businesses generally suffer in huge markets since competing with larger, more prominent ones is practically impossible.
As a result, you may need to reconsider your brand's position in your market and narrow your focus.
4) Build The Right Business Partnership
You can gain access to the audience of another small business in your niche by partnering with them.
To ensure that their consumer base is interested in your product or service, the company should complement yours.
5) Keep Your Existing Customers Too
Keeping an established customer is far easier than convincing a new customer to buy from you.
It can considerably enhance your income if you can keep your current customers while strategizing on obtaining new ones.
One way to retain your customers is to launch a customer loyalty program that rewards committed and loyal customers to your business.
In addition to all of the above, small businesses require funds in their highly competitive sectors.
Microfinance banks in Nigeria are designed to provide a broad range of financial services including business loans to poor and low-income household and their micro-enterprises at affordable cost.