5 Big-Business Growth Strategies Small Business Can Use

5-Big-Business-Growth-Strategies-Small-Business-Can-Use

More than 50% of companies fail during their first five years of doing business. That’s why applying proven and efficient strategies that enable business to grow is one of the most important things during early stages of company development. Here are 5 big-business growth strategies that small business can use.


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1. Increasing Market Penetration

This is the strategy for businesses that are entering a market and trying to take away the share of their competitors. It’s important to take market penetration very seriously, since it will lead to increase of company’s products or services, market growth and higher revenue. These are some of the ways to increase market penetration:

  • Offering better quality product
  • Selling products through more distribution channels
  • Increasing product or service promotion
  • Lowering the product or service price

2. Implementing Market Segmentation

Market segmentation is a very useful strategy that involves precise targeting and singling out one part of the market that would be interested in products or service that company’s offering. Although some entrepreneurs think that with this kind of precise targeting they will lose one part of the market, this practice actually increases conversion and the overall number of interested customers. This strategy also gives small businesses a chance to develop several different products for each segmented part of the market.

Market segmentation is incredibly useful for online promotion and it is also easy to implement due to very helpful tools that come with Facebook, Google and Instagram ad managers.

Here are a couple of very notable examples of market segmentation:

  • Fiat and Chrysler’s Jeep Renegade Although Jeep vehicles were mostly associated with more conservative crowd in the US, new model produced in Italy, targeted young and adventurous people, with its look, features and commercials.
  • Pepsi Co. When they saw they can’t compete with Coca Cola for the title of most popular soda, they targeted younger and more fun loving crowd, by hiring sport and show biz stars for promotion.

Recommended reading: Choosing the Right Growth Strategy


3. Making Partnerships

It’s sometimes hard to compete with big corporations, but small business can become much more competitive with one or a few smart and useful partnerships. Production businesses are advised to partner with companies that provide distribution channels for their products, while retail and other companies in the sales niche, should partner with product manufacturers in order to get bargain wholesale deals.

A couple of high profile partnerships from the corporate world are:

  • NASA and Lego partnership made for improving children’s education and spurring their interest in NASA’s space exploration with space themed LEGO sets.
  • American Express and Foursquare for making special deals for Amex card holders.

4. Acquisitions and Takeovers

When you think acquisitions, what probably comes to mind are big corporate deals. But the truth is, however small a business is, there is always the one that’s even smaller and less developed, especially in digital age, where almost every business idea turns into a startup.

That said, small companies need to be very careful with acquisitions due to very limited funds. They need to choose smaller companies with potential to bring great profits with smart ideas and talented workforce. Entrepreneurs also need to have an elaborate development and improvement plan for their newly acquired business.

In the corporate arena, acquisitions are an everyday thing, but there's no reason small businesses can't follow suit and grow this way.


Recommended reading: Growth Is Good: 5 Growth Strategies That Small Businesses Can Leverage Today


5. Thought Leadership

Big companies often make a name for themselves by being the thought-leader in their industry. Use this strategy for your small business. Become a thought leader in your niche. It's a strong strategy for attracting prospective clients to your business to help it grow. 

By making smart business moves and implementing these business strategies, even small companies can stay competitive and increase their customer base and revenue.

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