- Posted by: Jon Smart
- Categories: business development, sales, tips
How to drive organic growth.
While your business may have several corporate objectives, driving growth should be your number one priority.
After all, without growth, you won’t be able to keep your people in secure jobs, introduce new products or services, take risks and innovate and, ultimately, increase your turnover and profit.
Growth is the key to pushing your business forward. Without it, you’re standing still, or worse, moving backwards. Once this starts to happen, it doesn’t take too long for an enterprise to stop being commercially viable or sustainable.
Lack of growth can hamper your ability to invest or provide a full service and can ultimately lead to job cuts, asset sales and business closures.
So, ensuring your business objectives support your growth is essential.
There are two ways to grow a business, either organic – growing naturally using your own resources – or inorganic, by acquiring business assets from external sources.
Organic growth is often the holy grail for SMEs, especially those who don’t have the finance to acquire other businesses.
The challenge, though, is how to drive organic growth within your small business. That’s what this blog is focused on.
What is organic growth?
Organic growth occurs when a business increases its output and enhances sales through its own activities. It’s important because it can help a business to increase market share, boost revenue and profits, invest in more equipment, staff or premises, research and develop new products and diversify into new markets.
It allows business owners to maintain control of their company when compared with growing through merger or acquisition, which can mean they lose some or all of their control of the business. Organic growth usually takes longer to achieve than inorganic growth, because the process of acquiring new customers and expanding the business is slower than growing by taking on the concerns of another company.
But strong organic growth will help put the foundations in place to ensure your business remains stable and sustainable over the long-term.
If your business is pursuing an organic growth strategy, here are some things you should focus on to drive the organic growth of your business.
Research your audience
Knowing your ideal customers and understanding what they need and what motivates their decision-making is a crucial element of achieving organic growth.
Studies have found that businesses which regularly research their target audience and tweak their product or offering grow up to two times faster than firms that don’t.
Research enables you to focus your efforts your customers’ needs and preferences. It helps you to tailor your marketing approach and develop a competitive advantage.
Develop your niche
Businesses which try to be all things to everybody usually end up offering no real value to anyone. So, developing a niche and being known as a specialist in what you do is vital.
Narrowing your focus enables you to reduce marketing costs and competition while increasing your market share, customer base and revenue. A small pond can be highly profitable if you’re the biggest fish in it.
Shout about your differentiator
You’ve understood your target audience and have developed your niche. Now it’s time to take a stand and show the market why you’re different from your competitors.
A unique differentiator will make it much easier for your business to communicate your value to potential customers. It will set you apart from the competition and, ultimately, win more business.
Nail down your marketing
You’ve done all the work to understand your audience, develop your niche and define your differentiator.
Now it’s time to take what you’ve found and use it to develop a killer marketing strategy.
Focus your efforts on what you know about your ideal customers. What marketing channels do they use, what sort of messages do they respond to, how do they like to be sold to?
Once you’ve got your channels nailed down, don’t forget to track, tweak and improve.
The world of business moves fast, whatever industry you are in.
Trends come and go as tastes change, and new solutions come onto the market.
It’s crucial to stay ahead of the curve.
No-one will know your market and industry better than you.
So, ask yourself, what are the latest products and innovations?
What are your customers looking for? Is there anything they want that you don’t currently provide?
It’s essential to understand your market and where it’s headed and know where the demand lies.
Then, you can work out what you need to do to respond to your customers and prospects, to give them what they need.
Koa Consulting can show you how to drive organic growth
Growing the size of your customer base, and getting more value from these relationships, is the key to sustainable growth. Is your business ready to change?
We offer a full suite of solutions and services to help your business generate more leads, close more sales, maximise your customer relationships and achieve your goals.
We offer everything, from simple advice and support to give you a fresh perspective on your business, to a more in-depth and bespoke service tailored to your exact requirements.