For those of you who have already successfully started a business and are ready to take the next step, you may be wondering what you can do to help your business grow. There are many ways to do this, 10 of which are outlined below. Choosing the proper one (or ones) for your business will depend on the type of business you own, your available resources, and how much money, time and resources you're willing to invest all over again. If you're ready to grow, take a look at these tips.
Open another location. This is often the first way business owners approach growth. If you feel confident that your current business location is under control, consider expanding by opening a new location.
Offer your business as a franchise or business opportunity. Franchising your business will allow for growth without requiring you to manage the new location. This will help to maximize the time you spend improving your business in other ways, too.
License your product. This can be an effective, low-cost growth medium, particularly if you have a service product or branded product. Licensing also minimizes your risk and is low cost in comparison to the price of starting your own company to produce and sell your brand or product. To find a licensing partner, start by researching companies that provide products or services similar to yours.
Form an alliance. Aligning yourself with a similar type of business can be a powerful way to expand quickly.
Diversify. Diversifying is an excellent strategy for growth, because it allows you to have multiple streams of income that can often fill seasonal voids and, of course, increase sales and profit margins. Here are a few of the most common ways to diversify:
Sell complementary products or services
Teach adult education or other types of classes
Import or export yours or others' products
Become a paid speaker or columnist
Target other markets. Your current market is serving you well. Are there others? Probably. Use your imagination to determine what other markets could use your product.
Win a government contract. One of the best ways to grow your business is to win business from the government. Work with your local SBA and Small Business Development Center to help you determine the types of contracts available to you.
Merge with or acquire another business. Two is always bigger than one. Investigate companies that are similar to yours, or that have offerings that are complementary to yours, and consider the benefits of combining forces or acquiring the company.
Expand globally. To do this, you'll need a foreign distributor who can carry your product and resell it in their domestic markets. You can locate foreign distributors by scouring your city or state for a foreign company with a U.S. representative.
Expand to the Internet. Very often, customers discover a business through an online search engine. Be sure that your business has an online presence in order to maximize your exposure.
www.sba.gov.com
Wednesday, 11 February 2015
Monday, 9 February 2015
How to Define Your Target Market
To build a solid foundation for your business, you must first identify your typical customer and tailor your marketing pitch accordingly.
With the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market.
Many businesses say they target "anyone interested in my services." Some may say they target small business owners, homeowners, or stay-at-home moms. All of these targets are too general.
Targeting a specific market does not mean that you have to exclude people that do not fit your criteria from buying from you. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
For example, an interior design company could choose to market to homeowners between the ages of 35-65 with incomes of $150,000+ in the Baton Rouge, Louisiana, market. To define the market even further, the company could choose to target only those interested in kitchen and bath remodeling and traditional styles. This market could be broken down into two niches: parents on the go and retiring baby boomers.
With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market.
How to Define Your Target Market: Look at Your Current Customer Base
Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.
How to Define Your Target Market: Check Out Your Competition
Who are your competitors targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
How to Define Your Target Market: Choose Specific Demographics to Target
Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors:
• Age
• Location
• Gender
• Income level
• Education level
• Marital or family status
• Occupation
• Ethnic background
How to Define You Target Market: Evaluate Your Decision
Once you've decided on a target market, be sure to consider these questions:
• Are there enough people that fit my criteria?
• Will my target really benefit from my product/service? Will they see a need for it?
• Do I understand what drives my target to make decisions?
• Can they afford my product/service?
• Can I reach them with my message? Are they easily accessible?
Don't break your target down too far! Remember, you can have more than one niche market. Consider if your marketing message should be different for each niche market. If you can reach both niches effectively with the same message, then maybe you have broken down your market too far. Also, if you find that there are only 50 people that fit all of your criteria, maybe you should reevaluate your target. The trick is to find that perfect balance.
You may be asking, "How do I find all this information?" Try searching online for research others have done on your target. Search for magazine articles and blogs that talk about your target market or that talk to your target market. Search for blogs and forums where people in your target market communicate their opinions. Look for survey results, or consider conducting a survey of your own. Ask your current customers for feedback.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience.
source: INC.com
With the current state of the economy, having a well-defined target market is more important than ever. No one can afford to target everyone. Small businesses can effectively compete with large companies by targeting a niche market.
Many businesses say they target "anyone interested in my services." Some may say they target small business owners, homeowners, or stay-at-home moms. All of these targets are too general.
Targeting a specific market does not mean that you have to exclude people that do not fit your criteria from buying from you. Rather, target marketing allows you to focus your marketing dollars and brand message on a specific market that is more likely to buy from you than other markets. This is a much more affordable, efficient, and effective way to reach potential clients and generate business.
For example, an interior design company could choose to market to homeowners between the ages of 35-65 with incomes of $150,000+ in the Baton Rouge, Louisiana, market. To define the market even further, the company could choose to target only those interested in kitchen and bath remodeling and traditional styles. This market could be broken down into two niches: parents on the go and retiring baby boomers.
With a clearly defined target audience, it is much easier to determine where and how to market your company. Here are some tips to help you define your target market.
How to Define Your Target Market: Look at Your Current Customer Base
Who are your current customers, and why do they buy from you? Look for common characteristics and interests. Which ones bring in the most business? It is very likely that other people like them could also benefit from your product/service.
How to Define Your Target Market: Check Out Your Competition
Who are your competitors targeting? Who are their current customers? Don't go after the same market. You may find a niche market that they are overlooking.
How to Define Your Target Market: Choose Specific Demographics to Target
Figure out not only who has a need for your product or service, but also who is most likely to buy it. Think about the following factors:
• Age
• Location
• Gender
• Income level
• Education level
• Marital or family status
• Occupation
• Ethnic background
How to Define You Target Market: Evaluate Your Decision
Once you've decided on a target market, be sure to consider these questions:
• Are there enough people that fit my criteria?
• Will my target really benefit from my product/service? Will they see a need for it?
• Do I understand what drives my target to make decisions?
• Can they afford my product/service?
• Can I reach them with my message? Are they easily accessible?
Don't break your target down too far! Remember, you can have more than one niche market. Consider if your marketing message should be different for each niche market. If you can reach both niches effectively with the same message, then maybe you have broken down your market too far. Also, if you find that there are only 50 people that fit all of your criteria, maybe you should reevaluate your target. The trick is to find that perfect balance.
You may be asking, "How do I find all this information?" Try searching online for research others have done on your target. Search for magazine articles and blogs that talk about your target market or that talk to your target market. Search for blogs and forums where people in your target market communicate their opinions. Look for survey results, or consider conducting a survey of your own. Ask your current customers for feedback.
Defining your target market is the hard part. Once you know who you are targeting, it is much easier to figure out which media you can use to reach them and what marketing messages will resonate with them. Instead of sending direct mail to everyone in your zipcode, you can send only to those who fit your criteria. Save money and get a better return on investment by defining your target audience.
source: INC.com
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