Statistics tell us that very few companies can maintain steady business growth from their startup origins all the way through to becoming a big, stable business. This is more a testament to how difficult it is to achieve that kind of business growth, than it is to any lack of effort on the part of small business entrepreneurs. Here are some recommendations on how you can improve your chances of sustaining business growth and transitioning from a small business to a bigger one.
Develop an initial growth strategy
Becoming a big business doesn’t just magically happen, and to help improve your odds, you’ll need to develop a growth strategy which maximizes your results while minimizing risk and effort. For startups, it’s especially important that minimal risk is involved in any business strategy, until the company becomes stable enough that risk-taking will not be catastrophic in the event of failure. Your strategies may involve penetrating your current market more deeply, selling your current product lines to a related market, finding alternative selling channels for your products, and developing entirely new products to sell to your existing customer base.
When you feel like you’ve exhausted all possibilities from the initial growth strategies described above, you might want to consider integrative growth. This strategy is comprised of growing your business through mergers and acquisitions. For instance, you might purchase a competitor, you may want to buy out one or more of your suppliers, or you may want to purchase companies in your distribution chain, for instance retail outlets.
Growth through diversification
This is a less frequently used strategy in today’s business world, but it can still be very effective in some cases. By purchasing a company which is unrelated to your own business, but still appears to be profitable and well-run, you can diversify your overall operation such that you are less prone to economic downturns, and can experience real growth during times of prosperity.
Business growth through IRC Commercial Lending
If you haven’t been able to achieve the kind of business growth you want for your small business, especially because you lack the funding, you should contact IRC Commercial Lending to discuss some options we may be able to provide. We have helped many small businesses grow, and we may be able to provide the funding you need for real business growth as well.