Launching a startup and making it profitable isn’t as easy as it seems. It takes a lot of hard work, patience, and dedication. But with the right strategies, you can take your business through the different growth stages and succeed faster than other startups. There’s no single formula for achieving fast business growth, but you can speed up the process by using tried and tested strategies. Here’s how to go about it.
- Create a Customer Loyalty Program
A customer loyalty program is a tool many companies use to expand quickly. A company with such a program shows appreciation to its loyal customers by rewarding them with freebies and other incentives. Research shows that boosting your customer retention rate by only 5% can increase your profits by up to 95%.
Instead of spending a lot of money trying to acquire new customers, look for ways to retain your existing ones. Apart from helping you retain your current customers, a good customer loyalty program can also help you attract new clients.
Growth requires expansion. You can expand faster by diversifying–adding complementary products to the ones you’re already offering. Besides adding revenue streams, diversification also helps you tap into new markets. Customers love getting multiple products under the same roof, that’s what made malls popular.
For example, if your company offers loans to small businesses, you can start issuing title loans and RV title loans. If done right, diversification can give a tremendous boost to your brand image and company profitability. And by diversifying your products, you can protect yourself from competing companies.
- Be Agile
Digitization is quickly changing how business is done. Old methods of doing things are getting phased out fast. Entrepreneurs who want to future-proof their enterprises must remain agile to keep up with changing market conditions. Here are a few ways startups can become agile and easily adapt to situations.
- Invest in business security solutions
- Use technology to adjust based on changing consumer needs
- Promote a culture of learning and development among employees
- Cultivate partnerships and keep reinventing themselves
- Build a Strong Team
A strong team should comprise loyal people with diversified skill sets who have a good work ethic. When you surround yourself with the right people, you can pick their brains, develop creative ideas, and come up with great solutions to problems, propelling your startup to success. But before acquiring the right talent, create a great product.
- Invest in Your Startup
In the beginning, your profit margins will be very small, and sometimes, there’ll be no profit at all. The only way you can make your business grow during its infancy stages is by finding investors. Businesses that grow quickly are always backed by investors.
If the business is making a significant amount of money, avoid the temptation to set aside the money you make. Instead, identify areas that need improving and fix them early. This would be the time to determine if you require more employees or to make improvements to your marketing strategies.