World Business Web

Growing a business means increasing the number of customers or the amount of sales.

To do this we can, for example, create new sales promotions, train staff, improve production processes, designing new products or redesign we already have, offer extra services, etc.

But when it comes to growing a business, generally refers to a significant increase in customers or sales.

And the main tools for achieving this are: partnering with other companies, serve new types of consumers, increase sales points, to venture into foreign markets, improve customer service and increase advertising.

See below an explanation of each of these strategies:

Partnering with other companies

Partnering is to make alliances with other companies in order to provide benefits to both which, if not through an association could not be obtained.

These partnerships might include, for example, in agreements to combine resources (e.g. financial, human, technological), combine functions (e.g., production processes, product distribution), information sharing (e.g., market knowledge) share distribution channels or outlets, or customers (for example, if two companies have different kinds of products, but similar types of customers, and this allows us to offer our products to their customers, and her products to ours), etc..

The idea of partnering is finding businesses the same size as us, and with similar aspirations for growth that somehow, through an agreement, is capable of greater profitability for both, or a competitive advantage over other rival firms.

Address new types of consumers

Address new types of consumers means directing our products or services so that they are targeting different types of consumers who are already taking, but without neglecting the latter.

For example, if our products or services are dedicated to people of a certain age range and a certain socioeconomic status, could also choose to target people in other age ranges and other socioeconomic levels.

This may be necessary to create new goods or services, or simply adapt the products we already have, so they too can meet the needs or desires of other consumers.

Increase sales points

Increase sales points are to increase the places where we can offer or sell our products to final consumers.

The idea of increasing sales points is to expand our market and reach consumers of the same type that we are treating, but are in locations that were not distributed our products.

To increase the points of sales, we open new stores, stores, branches or franchises, we can make use of new brokers or dealers, or we can create new sales channels such as the creation of a website where we offer and sell our products.

Seek external markets

Export is a variation of the previous strategy, is to address new markets, but they are abroad.

In order to export must seek to make contact with foreign intermediaries that want to distribute or sell our products, or look for customers who buy from us directly.

The easiest way to achieve this is by creating our website and promoting our products on the Internet, another way to start exporting is participating in international fairs.

But before that we must consider that the first requirement to export is to have a good quality product.

Improve customer service

Provide good customer service is the most efficient way to grow a business. Is to provide a good service, great staff, comply with treatment and promises to provide prompt attention, personalized service, etc.

This involves training all our staff, especially one who has to interact constantly with the customer.

Providing good customer service allows us to grow, because not only we get the client to buy or visit again, but that we also recommend our products or services to other consumers.

Increase advertising

Finally, another way to grow a business is increasing investment in advertising, for which you do not need to spend much money.

To increase the publicity we can, for example, make use of flyers, posters, brochures, business cards, participate in fairs, set up a website and advertising on the Internet, giving gifts to the printed name of our company, etc.

But always bearing in mind that the best advertising is word of mouth, which is to create or provide a product or service of high quality, to the point that allows us to always be recommended by our customers.

Create and get a company is not an easy task. It is alleged that, on average, 70% of them fail before the age of three years, and that only 10% are over 5 years successfully.

Here we present the 5 main reasons why companies often fail, as well as some tips on how we can meet each of these reasons:

1. Lack of experience

Creating and managing a business is not easy, is not something you learn from the overnight, but it is something that is learned over time. Learn how to create and manage a business requires theory, but above all, a lot of practice.

The lack of experience often results in overly optimistic, unrealistic projections in hasty decisions in inefficient management, etc.

The experience acquired over time, simply by creating and managing businesses. If you do not have much experience, it is recommended to start slowly, beginning with a small business, taking some risk, and making decisions without fear of making mistakes or failing, knowing that mistakes and failure is where the more you learn .

2. Lack of capital

Another reason why businesses fail is lack of capital. Problem arises when you have not prepared a good budget expenditures, do not get the expected sales or the company grows too quickly and there is not enough money to be overwhelmed.

To address this problem, before starting a company, the first thing to do is develop a good business plan that allows us to make a good projection of both the expenditure and revenue, which, in turn, allows us to calculate what the capital requirements necessary to implement the business and to operate during the first months of life.

Another way to address this problem of lack of capital, is to seek to minimize investment (for example, by comparing While prices of inputs and equipment, choosing rather to suppliers, etc.), But without sacrificing quality.

3. Low sales

An obvious and common reason why businesses often fail is the low level of sales that come to get.

The reasons for low sales obtained may be several, perhaps they chose a bad location, not segmented the market properly, does not offer a quality product; it provides a good customer service.

The main ways to combat the problem of low sales are to provide a good quality product, provide good customer service, perform sales promotion, and increase advertising.

4. Poor location

A bad choice in the location of a business is another common reason that companies often fail.

The location of a business is an important aspect that we must take into account if we want to avoid premature failure, however, succeed.

When choosing the location of the premises of our company, we take our time, find good alternatives, and choose carefully, taking into account such factors as our target audience, competition, crowd, costs, accessibility, visibility, etc.

5. Excessive competition

And finally, another major reason why businesses often fail is excessive competition.

Often created a company that does not have much competition initially, but soon, especially if the company begins to succeed, new entrants are beginning to emerge that will make every effort to take away their market share.

The main ways to deal with the competition are to provide a good quality product, a unique, original, innovative and different, and on providing excellent customer service or.