Most of the time when people come to us they are looking for help to grow their businesses. And when you think about it, there are actually only five ways to grow a business. Here they are:
Double down on the niche that you already serve. This can be done through better-selling processes, better marketing processes, improved channels, but essentially you are selling the same thing to the same kind of people just more of it.
Grow by expanding your geography. This is when you take the same products/services that you're already selling and go into another state, another province, and another country. An example of this is the many Latin American and European clients we've helped to break into the North American market through our Look North and Look West programs.
Grow by adding products and services related to your existing offering, whether that's embellishments or extension products, or any sort of complimentary product that can be sold to the same kind of customer. You end up generating more revenue for each transaction.
This is the hardest way to grow. Take a new product or service to a new market segment. It's difficult because you have no reference clients and no established sales channels to use in the new arena. It is a brand new story. If you're a well-known company, you can get away with that. But if you're a smaller company without a powerful brand, then that new market and new offering can be extremely difficult.Your Business
A lot of companies don't consider this one. They often feel they're nor big enough or powerful enough. Growing through market acquisition typically outstrips organic growth. Acquiring another company has multiple benefits:
• helps you penetrate deeper into your existing market;
• removes a competitor;
• gives you access to their customer base, distribution network, and systems;
• gives you presence in a new geography;
• increases your market exposure and reputation;
• instantly adds new customers;
• consolidates your operation that can reduce costs;
• gives you access to the increased profits as the businesses roll forward;
• gives you an opportunity to buy a complementary product or service and offer it to your existing customer base.
It is a very quick way to grow - when done properly. If you are thinking of expanding your business through acquisition, give me a shout and I'll share what I know about this. While there are many 'best practices' each situation is unique.
There you have it.