I work with small businesses. They face a lot of challenges in growing. If I had to select the top 5 growth factors, they would be:
Create a niche: Small businesses should focus on small customer segments. Small businesses have limited capital. By focusing on a smaller market segment, they can conserve it. Also, this creates loyalty. As the business grows, the company can diversify and add other products.
Use the internet: While I am totally against using mass marketing channels, having a website and an online presence is essential. However, in their initial phase, small businesses should use it exclusively to build the brand instead of selling stuff. Blogs are a vital tool to engage the customers.
Do not forget the old ways: Business is all about building relationships. People forget this basic. A small business can use the old ways of meeting people, gifting them, sending letters instead of emails, etc. Instead of spending on online advertisements, the focus should be on building long-term relations.
Keep the price competitive: It may seem paradoxical to say that we should create a niche and keep the price competitive. But it is not. I have seen small businesses driving their customers away by pricing their products at a premium. The small business should strive to keep its overheads low. In the initial phase, the effort should be on validating the business idea. Thereafter, it should be on securing a customer-base. And finally, it should be to become profitable.
Enjoy the journey: All small businesses start because the founder is passionate about something. In the daily rigor of business, the passion gets lost. That makes the company transactional. People who loved your belief get disillusioned, and you feel drained. Therefore, do not let that fire fade away.
Metrics:
How many of these five factors are you getting a tick?
If you are not, make urgent course-correction.
Subodh
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