Many small business owners know they want to make a profit and keep growing but they are a bit vague on how to do it. Most will rely on one or two proven methods revolving around buying cheap and selling high. But those are not the only strategies available for a small business. With the aim of growing into big business, it might be worth emulating some of their strategies as well.
Good Market Segmentation
It is always good to profile your customers’ needs. In the days before, this was only possible with the use of expensive customer research. These days it is possible to leverage the power of digital tools to learn of your customers’ needs. Doing segmentation allows you to target your customers better and even carve out a niche for yourself. If you are selling boots you should know those who prefer ankle length boots and those who prefer calf length boots. Then you can have velvet boots for the two kinds to separate your product. Calf boot lovers looking for an alternative will definitely love yours.
Get into partnerships
You can get into a partnership to help you deliver a better product/service. In the boots example, some clients may prefer boots with leather straps but you find that making leather straps is not your strength. You can approach leather boot makers and have them make these leather straps in your design. This way you deliver the customers’ expectations.
Small businesses with low resources in manpower are always at a risk of inefficiency as the owner tries to handle different things simultaneously. You can get over this by implementing a checklist. This will list and prioritize the different tasks and jobs that have to be done. Ticking off this checklist as you go along ensures that everything is covered.
Developing a marketing funnel
A marketing funnel can be defined all the contact points a business has with a customer up to the point of purchase. Developing an efficient funnel that keeps the customers flowing towards the buying point grows your profits by helping improve sales. This is an example of how you would develop a funnel for an online baby cloths shop for example. Advertise on Facebook, lead the customer to a landing site, have the customer click on offers on the leading site to the checkout.
Being innovative keeps you ahead of the competition meaning that you capture the market before they can put their feet in. For example, if there is a rise for a rugged smartphones that can charge others, head to China and ask a cheap innovation to test the market. Always work to stay ahead.