One of the objectives of a business is to grow its profit. The problem is, many people who have started a business do not know how to do it. It is the intention of this article to show 4 different ways of growing the business.
The four strategies that will be presented are time tested and still applicable in todays business environment. The strategies are the following:
Strategy #1 Open another location
When you open a new location, you increase your market base. You increase your number of customer and your profit goes up as well. In choosing a location, it helps to know the market and their number in the area. This data will help you analyse if there is enough customers for you in the area.
Strategy #2 Come up with a new product
If you wish to stay where you are, you may find out what others items or services your customers are willing to avail from from. The best way to know is to ask what else they want with the products they buy from you. This strategy is more cost effective than the first strategy because you will be using the same resources.
Strategy #3 Sell your business as a franchise
Some businesses that have been running for years and have professionalized their operations can think of offering their business as a franchise. This means that they will be shifting the market from buyers to people who will become their franchisee. This model is a good way to generate cash from royalties and other fees.
Strategy #4 Target a New Market
Another way to increase your profit base is to target new customers. Of course this is in consideration of you business identity. If you are selling diapers for infants, you will not offer massage services, it does not sync. When you are offering something like diapers for infants, it is but logical to offer diapers for adults. This makes you more consistent to the nature of your business.
Having a good strategy to use for growth is not enough. Remember, for the strategies to be effective, you have to have financial and manpower resource too to support your plans, but while waiting for it, there is no harm in starting a plan.