How Can I Achieve Steady Business Growth?
Sustaining business growth in a down economy is not a simple feat to achieve. But believe it or not, that is exactly what some businessmen in Nigeria are doing. While some Nigerian businessmen are busy lamenting the poor manner the government is handling the current economic crisis (they do have a valid point though), some wise entrepreneurs are making steady business progress and getting fantastic returns on their various investment in the different sector sof the economy.
Truly, one man’s misfortune can be another’s fortune. If you doubt ask the undertaker, the more people die as a result of epidemic or natural disaster, the more his business booms. So, it is actually possible to be celebrating while others are lamenting, it simply depends on where you position yourself.
Every entrepreneur desire that his or her business should grow. Nobody wants to have the same turnover at the end of each financial year. However, just like most things in life, it is not about wishing for result, it is about taking the right steps to achieve the desired result. So how can an entrepreneur sustain business growth during an economic crisis? I’ll share with you five proven tips for steady business growth.
5 Proven Tips For Business Growth
1. Keep Your Current Customers Happy – A bird in hand is worth more than 1million that you are dreaming of getting with your marketing gimmicks. Keep your current customers. Do everything feasible to keep them happy and loyal to you. Don’t neglect complains or ignore their suggestion. If you’ve not been doing that, it is time to overhaul your customer care service such that it truly portray that you believe that the customer is king.
Get creative and devise ways to make it seem difficult and uneconomical for your customers to switch to your competitors. Add value to your products and services at no extra cost to your customers. Some of those addons can actually be done without you eating into your profit. It just require a little brainstorming with your team to bring out ideas you never thought possible.
Give personalized services to each customer making him or her feel that he or she is the most important client you’ve got. Everyone appreciate being treated as a VIP. Give your customers that special touch of royalty. It won’t cost a dime to insist that your staff should treat each customer like a king. Just remind your team that it is the customer that pays the bills.
2. Increase Your Market Share – There is an adage that the best form of defense is attack. Go after the customers of your competitors. Woo them with better offers and customized packages. Give them sufficient reason to consider ditching your rival and pitching their tent with you.
It is business war out there, so map out strategies on how you will gain more market share at the expense of your competitors. Go brainstorming with your team on how to provide higher quality product/service at the same price or lower than your competitors.
Don’t say it can’t be done. Keep working at it and soon, you and your team will figure a way out. Then you can go full swing into raiding your competitors of their loyal customers. Be tactical though, especially when dealing with competitors that have financial muscle. If they get wind of your strategy, they may launch a counter-attack that you are not prepared for.
3. Be Proactive, Keep Current on Market Events – Knowledge is power. It is your business to know what is happening and what is likely to happen soon in the market you belong. You need to keep tap on developments in the market that can affect your position.
Your ability to spot opportunities before competitors will give you an added advantage. Don’t wait until the news is spread on the print or electronic media before taking action. Successful businessmen sniff out information before it is made public. You need to watch industry shifts, changes in buying trends, seasonal changes, technological changes etc. The world is dynamic, what worked yesterday, may be obsolete today, so keep yourself up to date on market trends.
4. Strive to Enter New Markets – Don’t be a local champion in your present market. Look for opportunity to make profitable entry into other markets. Study markets that have potential for your business and plan how you will enter without loosing money to fierce competition in such market. Identify areas where you have an advantage over an existing competitor and ensure you can match the standards of quality and value being provided.
5. Diversify Your Business – Never put all your egg in one basket. Study businesses that are related to yours. Plan on diversifying into some of the simple ones such that you are not tied to a particular channel of income. Dangote Group is a good example of a Nigerian Business that has diversified successfully.
Business Growth don’t just happen. Successful Businessmen set goals, plan and work towards realizing their dream of steady business growth. If you don’t work it out, it won’t happen by accident. So, quit complaining and whining about the poor state of the nation’s economy. It is time to take advantage of the opportunities that have been made available by the economic crises. If you’re determined to experience Business Growth, nobody can stop you, because nobody have a blueprint for stopping you. Cheers 😉
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Tags: Business, Competition, Customer service, Entrepreneur, Market share, Marketing, Nigeria, small business
Insightful article. However let me add my point to your 5 listed. You should also remember to plough back a significant amount of your profit for your business to grow especially when borrowing from banks is expensive and cumbersome.
You’re right Paul. I should have added that especially for our Naija brothers and sisters. I forgot that bad reputation we have of eating up all the business profit as if there is no tomorrow. Some foolish businessmen even go as far as eating into their capital just because they want to satisfy relatives or impress friends.
That is why it is rare to see businesses that are transferred from one generation to another.
For a business to enjoy steady growth, the entrepreneur must be willing to delay gratification. He must consciously plug back a significant percentage of the PROFIT into the business. This is so much necessary especially in an economy like ours where the cost of borrowing is pretty high.
You will be better off as an entrepreneur if you use your RETAINED EARNINGS to expand your business instead of using borrowed funds or bank loans.
Thanks Paul for pointing this important fact out. I appreciate your continuous contribution to discussions on this blog. Cheers
I totally disagree with you on some points.
When there is economic down turn, it is not advisable to woo your customers with price bcos when a better offer comes he will run away like a prostitute.
Don’t enter into a new market that you will be #2… Being a local champion occupying your number one position is better than struggling to find a place in a new market.
Diversification doesnt mean business growth. What matters is your profit margin. Keep enlarging your sales force. This is how you grow. If you become Dangote, you will be in a corporate battle with Otedola for intruding into other peoples’ territory rudely. Don’t dilute your brand!
I think the war here is Management Vs Marketing! Who will win?
@Adama
The essence of providing opportunity to comment is that readers of this blog can add their own opinion to whatever is been discussed. So, your comment is welcome even though I’ve not been convinced by you that I was wrong in what I wrote. Thanks for visiting. Cheers. 😉
I am new in the business of bulk SMS, I need assistance in respect
of a standard sales or business proposal format on Bulk SMS which can be presented or submitted to companies or organisations.
l am about to start the business,l need you to assist me how to write business proposal. thanks.
I’m sorry I can’t do that because I have a lot of things on my hand. Perhaps someone will come across your request and get in touch with you. Thanks for visiting.
i am a new business minded person, and i love reading business book. but at present, i am workng with WEMA BANK PLC, my business has a working capital of N 200,000. but i need a business mentor. thanks
you guys are doing great work here. i love every bit of it..pls keep it up thats the spirit we need in naija.
Thanks for ur comments,i think it is a good business sugestion on diversification cos when u are not rely on one source of income we make u scape through when there is economy crunch.Then,regarding entry of new market is like u go into (untaped market) which allow u to have maximise ur profit before competitors come into the market serving.As a result of this u can become a market leader in such a market niche.
i am working with chisco transport as an inventory officer and i want to start my business but i dont hv capital. i hv prepared my business description and all that for start up includin registerin my company, how do i convince my company to partner with me since they have d capital to import spare parts wich is d same biz am lookin up to. is it unlawful to use their whare house as my contact since i work there? what do i do from here?