One of the best ways to turn your small business into a big business is by carefully crafting growth strategies. Working with a business coach, like Julie Keyes, can help you make the right decisions about the right moves for your business. In this week’s blog post, we want to explore some of those growth strategies using an imaginary company called Mikey’s Marshmallows. Using this “company,” we’ll introduce 3 business growth strategy examples that can help guide your decision about where you should take your small business in the future.
Mikey’s Marshmallows is a small business that offers custom-made, gourmet marshmallows in a variety of colors, shapes, sizes, and colors. Mikey Smith, the owner, has been in business for two years and employs a handful of helpers. He sells exclusively at his brick and mortar store, located on Main Street in the small town of Cityburg. Mikey is thinking about growing his shop. Here are three possible scenarios he might find himself in:
Market development means that Mikey is taking the marshmallow show on the road. In the first of our business growth strategy examples, the goal is sell more products by honing in on an adjacent market. Mikey would find towns near Cityburg that would also be interested in purchasing gourmet sweets and opening new locations. Depending on the interest in surrounding towns, he could either commute and run both shops, or create franchise opportunities for others interested in becoming small business owners.
This is the lowest risk way of growing your business, and it simply means selling more of your product to customers that you already have. A great way for Mikey to do this would be to advertise that his marshmallows now come in sugar-free options for those who are watching what they eat or by running a promotion that awards punch-card users with a free confection for every 8th marshmallow purchased. Market penetration requires business owners to think strategically about doing the most with the people that they are already selling to.
New Products, New Customers
If Mikey decided that neither of the above options were appropriate, he might opt to expand his line. Perhaps marshmallows just weren’t bringing in the customers who were craving something a little more rich. Adding a new line of gourmet chocolate bars, with exotic ingredients like mascarpone or chili flakes, might shake up his marshmallow shop. If he notices that tons of kids take Main Street home after school, promoting his new sour gummies could increase sales for a whole new demographic that just wasn’t interested in marshmallows ever since they tried the newest big-brand sour candy. By getting creative what he sells and who he’s selling it to, Mikey could grow his business without leaving his counter.
No matter which of these business growth strategy examples you like the most, Julie Keyes can help you implement it for your business. With the knowledge of someone who’s worked in business and the empathy of someone who understands how difficult it can be to confront personal growth, she has become one of Minneapolis’ esteemed business coaches. She can help you reach your goals for your business and for yourself.