Women In Business

Business growth: how to make it happen

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All business needs to grow. It’s what adds cash to the topline.  But many of the millions of small businesses sometimes struggle with growth often due to a lack of understanding, time and comfort-zone. In fact, half of small businesses are in the red (negative cashflow). To grow your business, you need to consider the 4 Growth Drivers and choose which one your business needs.

The Growth Drivers in business are:

1. More Customers

To grow your business you need more customers which sounds easy enough.  This is where many businesses wrongly believe they need to FOCUS so their businesses can GROW. The sad reality is that targeting more customers may not give you the particular business Growth you need.

Let’s look at Coles, Woolworths and IGA… They are the 3 big supermarket chains and we all shop there. Some of us will shop between all 3 and some will have an allegiance usually based on the proximity to where we live. With all Australians shopping at one of the big 3 it is safe to say the likelihood of these stores attracting more customers is fairly limited so instead of trying to get more customers they need focus on other Growth Drivers for their growth opportunities.

2. More often

This Growth Driver is all about getting your existing customers to come into your store more often. If we look again to Coles, Woolworths and IGA we can see a huge potential for growth here for them.  This is why they put out catalogues with sales campaigns of ½ price specials, feed a family of 4 for under $10 and the list goes on. All in an attempt to get the buyer to come in to their store more often.  If they can get you through the door then you are probably going to buy and the more times you go there the more likely you will spend more.  

3. More items

Wouldn’t it be great if your customers purchased more when they came to your business?  This is another sure way to grow your business but, once again is it right for you?  Let’s look at Petrol Stations. Driveway service is something from the past, now we have to pump our own fuel and head into the cashier to pay for our purchase.  We are instantly bombarded with Sweet sugary drink specials, snacks and sweet treats right there close to the pay point, how easy is it for a customer to add a few impulse buys to the total bill. It is very hard for many of us to resist but the Service Station owner has just added more items to your purchase total and hence has grown their business.

4. More money

This is often considered the hardest of Growth Drivers to implement.  Many businesses say that no one wants to pay more money, or do they?  More Money doesn’t mean charging your customers more than the worth of the item they are purchasing.  If a customer sees value for money in a purchase then they will definitely spend more.  A simple example of more money is McDonalds and their upsizing with their meal deals.

So there it is –  4 very simple Growth Drivers that will Grow your Business.  The challenge to all business owners and managers who want to grow their business is to determine which of the 4 Growth Drivers will work best for them, and that will give them the greatest opportunities for growth.

About Annette Stafford

Annette Stafford has extensive experience in helping small to medium sized businesses to grow at www.6seed.com.au

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