A strategic planning meeting that generally begins with the conference room, the SWOT analysis, a session of brainstorming, the flipchart, and ends with a negotiated growth strategy is a scenario that most business leaders have been a part of. But this type of strategy is more of a feel-good one rather than an effective one.
Luckily, there is a more effective way to plan for the future growth of an organization and it is called growth strategy. For a global business strategy leader, building a potential growth strategy is the primary and most significant task as a part of their role. Managing an organization in a way so that it operates efficiently and grows exponentially is a daunting task for the leaders and executives.
Here, we will walk you through the basic concepts of producing a viable growth strategy
So first let’s get to the basics and understand what exactly is a business growth strategy.
Business Growth Strategy Defined
A business growth strategy is more of a growth-defining roadmap of an organization. It describes the industry where the organization serves, the types of clients it targets, the services offered, and how the leader and employees will work to position and develop the brand.
An impactful growth strategy can replace random functional issues and opportunistic business development methods with a valuable and systematic approach to growth. That means once the global business strategy leader of an organization gets the growth strategy right, the rest of the business operations get easier.
Proven Growth Strategies
Improve Market Penetration
This strategy works best in the product-based ecosystem as it involves selling more products to the same group of customers. An example of such a type of strategy is super-sizing from the retail food industry. It involves a fairly simple way to get more business from an already captive target market.
Now getting back to the business landscape, this strategy provides an effective approach where your business offers more services to the same client. This low-risk strategy doesn’t demand introducing anything new in the business plan. But that does not mean that it comes without risk at all. Because if you serve a small number of clients, losing just one of them could put your firm in a challenging state. Generally, most of the clients are not aware of the full range of products or services offered by your business which means cross-selling your other services may not be an easy task. On one hand, it offers plenty of room for service providers to increase their business.
Develop New Markets
In this strategy, the business offers its existing services to a whole new market. It is one of the most common growth strategies used by many professional firms. Many organizations take it to the extreme and roll out the services to each type of customer because more potential buyers imply more sales.
But this strategy comes with some considerable challenges. First, it cost capital and resources to cultivate and nurture a new range of consumers. Then, there is a very tangible risk of diluting your brand. If you are strongly attributed with a specific market and you further try to expand to include a new market, any advantage you may have as a market leader could be eliminated.
How can you lead your organization effectively?
To develop the right growth strategy for your business, it is important to hone the necessary hard and soft skills and develop the optimal leadership qualities to lead effectively. We have figured out some of the best business certifications that can provide you the required leadership training and strengthen your industry knowledge to stay on top of the latest leadership trends and teach you how to teach the next generation of leaders in your organization. Some of the best business certifications of all time include Senior Business Professional Executive by that TSI.