Growing your small business

Now that you’ve gotten your small business of the ground and running it’s time to focus on the next step: growth.  But how exactly do you grow your business in difficult financial times without going broke or straying too far from your original idea?

According to the Small Business Administration, almost 70% of businesses survive for the first two years but then only 50%of them survive the next five.  This is proof that many businesses can make it through the first phase but once the “newness” wears off, not as many businesses can stay solvent.  It stands to reason that the businesses that fail after two years didn’t continue to grow.  So how can you avoid such a fate?

A big problem that a lot of new businesses face is: how do you keep customers coming back for more?  Once they purchased what you’ve offered, they may not need you for a few years to come.  One way to avoid this is to continuously update your product so that consumers will want the newest version.  Adding products and services should be a constant theme when you are a small business owner because it will keep your customer interested.  You don’t want them to just purchase and then walk away – you want to cultivate a long-lasting relationship with them.  Of course, by keeping open lines of communication with your initial customer you have the potential to drive in new business by word of mouth, referrals and recommendations.  Additionally, you should be advertising your latest products as they become available.

Remember to identify your customer base repeatedly and keep your finger on the pulse of what they need and want so you can better service them.  Playing to your customer base is essential to getting and keeping customers.  “In many ways, who your customers are should characterize how you run your business in terms of marketing, product design, and even store policies.”

Analyze your successes and failures.  Obviously, failures should be explored as to what went wrong and why an idea didn’t work but don’t forget to look at why something did in fact work.  Remember, what did work is just as important as what didn’t.  This is helpful in putting together future business ideas and identifying things that impressed customers in the first place.  “So long as you try to ascertain the good and bad of your business, you can avoid future missteps and guarantee better success.”

Keep your current customers satisfied.  A good way to do this is by offering something in return for filling out a customer satisfaction survey.  The first step to growing your business is to always exceed the expectations of your current customers.  This reduces customer turnover which means you won’t have to waste as much time looking for new customers to replace the old.  Work with your customers to determine new product and service opportunities.  

Most importantly, know your customer.  Knowing what your customer needs and wants is the best way to keep them happy and interested in the product you are selling.  Why do they in fact need your product and services?  Is it merely a trend?  Are there other competing companies out there doing the same thing?

Lastly, actively pursue new products and market opportunities.  This is the proactive part of growth and business development.  “It includes seeking our growing and profitable markets, solving customer’s problems and finding new market niches where your company can have a sustainable competitive advantage.”

Here are some articles to check out that just might help give you the right tools to grow your brand in this competitive market.

“10 Steps to grow your business”: http://www.startupnation.com/steps/71/grow-your-business.htm

“How to grow your business without going broke”: http://www.openforum.com/articles/how-to-grow-your-business-without-going-broke

“5 ways to grow your business despite the economic crisis”: http://www.openforum.com/articles/5-ways-to-grow-your-business-despite-the-economic-crisis