Which of These 4 Types of Business Growth Is Best?

I came across an article that discusses the best types of business growth. Here are a few good points that I wanted to share:

Riddle: Imagine a conversation between four business owners who all want to grow their businesses, but each in a different way. The first has something completely new to sell to a completely new market. The second is going to sell new stuff to the business’s existing customers. The third is going to sell more of what it already sells to its existing customers. And the fourth is going to sell what the business already sells, but to a brand new type of customer. Which growth strategy is easier to execute? Which is most likely to succeed?

Why and How?

Why? Think about your own experience with your business and how to grow it. The big ideas are exciting, but simpler growth usually wins.

Here's a breakdown to help you see the advantages for yourself.

1. List the various ways you’re already considering for growing your business. We all do that when we’re alone, right? And I bet you have options in your head, always. I do. Take a step back from the details, get out of the routine and make a list of the ideas hanging around in the back of your mind. Don’t do details. Don’t think about them more than you already have. Just list them.

2. Divide those options into these four categories: selling something new to a new market; selling something new to your existing market; selling more of what you already sell to your existing market, and selling what you already sell to a new market. It’s not always immediately obvious which is which, but stay loose and flexible. Assume you’ll have to push and pull a bit to make the division clean.

3. Look at what you’ve got. I predict that the big new ideas, the ones you’d put into category 1, are the ones that take most of your thinking time. What I’ve seen in years of running my own company and reading business plans of other companies is that we business owners are naturally more excited about something completely new—the big idea and the big win. Thinking of new things to sell, and new people to sell them to, can be a kick. It’s much more interesting than thinking about how to increase our average sale per customer or client or selling more to the existing base. Is that what you see with your list?

Find the full article here and don’t hesitate to discuss your thoughts with me. Please feel free to contact me on 0467 749 378 or email at [email protected] for any thoughts and perspectives.

Thanks,

Robert