According to Entrepreneur.com, only half of startups survive their first five years while just a third are still around after a decade. Though there are a huge variety of factors that can have an impact on the viability and longevity of a new business, one of the things that can make or break a new venture is strategy.
A good growth strategy not only gives a company a template to work around, it also helps to focus employee energy and ensure everyone in an organisation is on the same page. Creating a workable and relevant growth strategy for your company is therefore an important part of business. So what options are there for your company and what do different strategies tell us about businesses and their goals?
Types of growth strategy
Growth strategies come in many different forms, however in general, they involve either diversification, product development, market penetration, or market development. Businesses can try to grow their customer base by broadening their product line and widening their appeal. Alternatively, they might opt to increase brand awareness by working on market penetration, or a company might invest in development in order to ensure the products they offer are at the cutting edge of what’s available. Each type of growth strategy involves a different approach, however all require a unified effort on the part of business owners and employees if they’re going to be successful.
What growth strategies tell us
The path a company chooses will depend on the type of growth they want to achieve and this can tell us a lot about their long term goals and ambitions. For example, a business that wants to appeal to a broad swathe of customers may opt to diversify its product line, increasing the variety of products and services it offers to ensure it has something for everyone. On the other hand, a company that wants to earn itself a reputation as a specialist within its industry may focus on product development in the hope that they’ll create products that offer the consumer something different.
The growth strategy a company chooses tells both its customers and its rivals the direction in which it intends to go. Analysing the different directions that competitors have taken should give business owners an idea of their long term goals and could also inform a business’ own growth strategy.
How to develop a growth strategy
Almost all growth strategies rely on customer interaction and market research in one form or another. In order to develop new products, move into new areas and boost brand awareness, businesses need to understand their market base, communicate with their customers and listen to feedback.
The most effective way to carry out this research, and keep lines of communication open, is to invest in a telemarketing campaign. A fast and reliable way of gathering important information and boosting brand awareness, telemarketing can help you to achieve your long term growth goals.