5 Disciplines Of Sustained Growth
Every business wants growth, and double-digit growth is the dream of every dedicated business owner, even when dull results show up at quarter’s end.
A lot of entrepreneurial business owners need a step by step guide to plan their way into significant, sustainable growth. It can be achieved even in a slow economy as showed by such companies like Starbucks, Harley Davidson and WalMart. Even smaller businesses such as Paychex and Oshkosh Truck have been able to make gains in revenue, gross profits and net profits.
Below are 5 disciplines of sustained growth:
1. Retain Your Customer Base: Keep the growth that you already have by coaxing customers into complex relationships that make it a hassle for them to switch to your competitor. Customize your products/services using data gleaned from your customers allowing you a head start from the competitors. Proactively managing customer defections will help you anticipate and pre-empt them. Bonding with customers wherever emotion is tied to an interaction is another great way to keep them.
2. Win Market Share at the Expense of Your Competitors: Give customers a reason to abandon a competitor’s product/service for yours. Do whatever it takes to lower the switching costs. Pulling customers away from a rival can be hard, so you must give many resources to raiding their customer base. Providing greater value and quality are critical to this end. Buying a rival is another way to do this.
3. Take Advantage Of Market Position: appear where growth is going to happen by seeing it early. This can be accomplished by watching the industry for shifts in buying criteria, product or service innovations, and population trends. You must be able to identify positioning opportunities to make the most of them by continuously using an orderly approach to the process.
4. Invade Adjacent Markets: Before moving into a nearby market, choose whether it presents substantial long-term growth and profitability. Check whether you have an advantage over a competitor, and make sure you can match its standards of quality and value.
5. Invest In New Lines of Business: If you take this approach, never overpay for a new line. You must find simple strategies rather than hard ones, and partner with the new business by analyzing its leadership team and balance sheet.
Although, a successful growth portfolio may not include all five of these disciplines, it must contain more than one. Only a balanced growth portfolio can keep an institution developing when the market shifts dramatically.
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