Once a start-up has reached a stage in which its revenue earning capacity has become stable, its products’ marketability is feasible.
The next round of questions would be how you raise your venture to the next level, the Growth Stage.
It’s not easy to raise the business bar from the initial stages to the growth level. It takes reasonable effort, direction, meticulous planning, and careful charting of resources not to commit any mistake.
Any business mistakes in this stage will only lead to the company’s downfall to the starting up mode, which you should avoid.
5 BASIC-CUM-BEST BUSINESS GROWTH STRATEGIES
Listed below are some growth strategies for giving direction to the venture regarding its future operations:
1. ORGANIC GROWTH
The primary adage that one step at a time emphasises that automatic growth will indeed happen with time resounds here.
The question about elaborate planning and charting of resources is unneeded in this stage. The notion is that once goods and services start to sell, the scope for more substantial sales automatically chips in for better revenues.
Organic growth is the fundamental premise. You cannot avoid the time element on this front.
With time, the conversion from the start-up stage to the growth stage will add to all resources and the right direction.
Another straightforward and convenient option for start-ups is to earn quick market standing and reputation. You should analyse similar companies in the same industry verticals.
Cash-rich companies generally prefer this. They are resorting to this type of strategic move leads to normal expansion and geographic capturing of markets.
Worldwide, not only start-ups but top multinationals also specialise in taking over a company’s operations. They do so after careful studying of its future valuation and marketing capabilities.
Through this move, a company can reap the goodwill, brand image and reputation of an already established market player.
Moreover, through this market capture, the company’s sales will reach high rocket levels and reap good revenue quickly.
3. PUBLIC OFFERINGS
Companies that have already expanded but are also in a mode to take in fresh investors primarily undertake them.
Going public means that the market standing of the start-up has increased. It has enough backing to float its shares in the market and gain investors. It would also mean that concerning the percentage of holding, the company’s workings are under the strict scrutiny of third party investors.
In turn, this would lead to proper management of the company’s resources accompanied by no scope for any fraud and financial irregularities.
The primary way to expand the start-up besides the means, as mentioned above, is to open new branches and offices in places.
Geographical expansion of the venture by opening various factories, office, branches in outside cities and countries will ensure that world over the:-
- presence of the company is unquestionable;
- The saleability of its products is guaranteed;
- Standardization of the products is maintained;
- Greater brand image and recognition;
- Better customer engagement, customer retention; and
- Greater sales and revenue
There is a significant disadvantage of this type of growth strategy. It takes a lot of time to open a branch office and capture market, considering the cut-throat competition.
You will require new licenses and sanctions to operate legally in other locations without any trouble.
Another straightforward way of gaining foreign exchange is to export the goods and services of the start-up to other countries outside this location.
This move will ensure the inflow of foreign exchange. When converted into home currency, it will be a wholesome amount. It also provides extensive customer coverage and visibility of the brand.
The start-up can gain recognition and customer engagement. The quality of goods and services so delivered is standardised. It has with it the required legal sanctions for exporting.
Implementation of Strategies Should Have Financial Support Too
However, the Traditional lenders in the United Kingdom do not cater to those already paying off and bad credit scores.
Marginalised people are unable to give any guarantee or collaterals. They can avail of these loans through online lenders in the UK. They even fund your self-employed dreams by making the way through loans for the unemployed. Easy and quick, once the application and other documentation formalities comply, the company sanctions the loan amount the very same day, even within a few hours.