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Business growth strategy for startups: Use your first profit

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This concise guide outlines how small businesses and startups can use their first profits to drive their business growth strategy.

For small business and startup owners, few milestones will be as exciting – or as important – as the time you report your first profit. It’s a reward for all the work you’ve put into making a success of your enterprise – taking an idea to market and getting people to buy into it. But what comes next? How can you build on that first profit and put in place a platform for future growth?

Using your first profit for your business growth strategy

The decision to invest that surplus cash should be an integral part of any business growth strategy. A profit is money earned – not loaned or owed. As such, you’re free to use that sum to build a framework where the money you’ve made is being put to use to the long-term benefit of the business. It’s a sustainable approach – but it’s just a question of knowing where to invest.

Get seen by more people

Using your first profits, investing in marketing – not least in digital channels – can be a wise business growth strategy. After all, what better way to strengthen your chances of returning another profit than reaching (and selling to) more potential clients? Ofcom research reveals that almost 90% of adults used the internet this year. But are you currently reaching to them?

Of course, digital marketing is not a single discipline. So, there are many ways in which your business can reach people. From SEO to social media, clever investment can have big results.

Diversify your investment

If you’re willing to take a greater risk with your investment, you can look to diversify and put that profit into other ventures. Stocks, bonds, pensions and foreign exchange can deliver fast, attractive returns. It’s not an activity that you need to go into blind, either. You can sign up to a stock or forex demo account to test the water first – without taking undue risk on that profit.

Take on fresh new talent

It’s understandable that you might not want to risk your first business profits and diversify too soon. For the time being, you may well prefer to invest in the business itself. As the owner of a small business, it’s likely that you’ve been doing the jobs of many people. So, now could be the time to invest in talent with skills in relevant areas as a business growth strategy that can add huge value to your business.

Outsource and consolidate

If a full-time hire isn’t quite right for your business growth strategy at the moment, there is a more short-term solution you can take. Enlist a third party and outsource specific functions you might not enjoy or be as confident with – such as accounting or book-keeping. If nothing else, it’ll give you the freedom to pursue other growth-generating activities within the business – like a new product.

Expand as a business growth strategy

The most effective business growth strategy is business expansion. There are several main types of business expansion, after which you will get an increase in the money invested in development. At the same time, of course, the responsibility for the development of any type of business rests solely with you, and it is necessary to accurately calculate all possible risks before moving in one direction or another as part of your business growth strategy.

Expansion business growth strategy 1: new markets

Expand your product range and discover new markets. In this case, it is worth opening the production of goods from related areas only if you are firmly on your feet in the main area. Conduct market research on consumer expectations for your company and your brand’s key associations. Try to let them guide you in choosing the areas where you want to expand.

Expansion business growth strategy 2: open an additional office

Open new sales offices in the city. In large cities, it is important to consider the decision of opening an additional office in a location a long way from the first when the distance and time it takes to overcome it is critical. In this case, you will receive additional customers who will give them more convenient access to your goods.

Expansion business growth strategy 3: open new branches

Open branches in other regions of the country. Remember that your reputation, which has been successfully declared in one city, serves as a reputation support in another. At the same time, the opening of the branch should be preceded by a thorough analysis of the market – a failure in selling the branch can adversely affect the customers of the main point of sale.

Conclusion

There are many different business growth strategy opportunities that are available to you after your business reports its first profits. The bottom line is choosing the business growth strategy that makes most sense to you. With a well-executed investment, that initial profit can be turned into something a whole lot bigger – and that can only bode well for the future growth and success of your business brainchild.

About Business Woman Media

Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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