Business Growth and Expansion - How to Grow Business?

The right business expansion strategy is crucial to sustaining long-term financial well-being and success. Failure to grow the company at the right time leaves your business at risk of being left behind and the competitors cannibalising it. Therefore, putting in extra effort by possibly hiring skilled people, investing in marketing, and expanding the product line, are crucial to ensure corporate growth. However, you would require sufficient funding to cover the costs involved, which is when a Business Expansion Loan from Hero FinCorp provides financial support. Before taking the leap, check if your business is ready for expansion.

Types of Business Growth

Discover different types of business growth strategies to effectively expand and thrive. From organic growth and strategic partnerships to internal improvements, explore how to grow your business and achieve long-term success.

• Organic business growth.

Organic business growth refers to the natural expansion of a company through internal means, such as increased sales, improved customer loyalty, and product/service enhancements, without relying on external factors like acquisitions or investments.

• Strategic business growth.

Strategic business growth involves a deliberate and planned approach to expanding a company's operations and market presence. It includes strategies such as market research, partnerships, acquisitions, and diversification to achieve long-term sustainable growth and competitive advantage.

• Internal business growth.

Internal business growth refers to the expansion of a company's operations and profitability through internal resources and strategies. This can include optimising processes, improving efficiency, enhancing product offerings, and expanding customer base, without relying on external factors or acquisitions.

• Partnership or merge business growth.

Partnership or merge business growth involves collaborating with other companies or merging with them to leverage shared resources, expertise, and market reach. This strategic approach can lead to accelerated growth and increased market presence.

Stages of Business Growth

Understand the stages of online business growth and navigate each phase successfully. From startup and expansion to maturity and diversification, learn how to effectively scale your online business for sustained growth and success.

• Startup stage

The startup stage marks the beginning of a business venture, filled with excitement and potential. It requires forming a workable business model, securing finance, developing products or services, and building a customer network. It's a critical phase where strategic planning and financial support are vital for future growth and sustainability.

• Growth stage

The growth stage signifies a period of rapid expansion and increased market presence. Businesses in this stage experience significant sales growth, expansion into new markets, and the need for scaling operations and resources. Strategic planning, effective marketing, and financial management are crucial for sustaining growth and seizing opportunities.

• Maturity stage

The maturity stage is characterised by stable growth and a well-established market position. Businesses in this stage focus on optimising operations, enhancing customer loyalty, and exploring new revenue streams. It requires continuous innovation, strategic partnerships, and efficient resource allocation to maintain competitiveness and adapt to changing market dynamics.

• Renewal/decline stage.

The renewal/decline stage represents a critical juncture for businesses. It involves evaluating the company's performance and making strategic decisions to either revitalise the business through innovation, restructuring, or entering new markets, or accepting decline and gracefully exiting the market. Adaptability and proactive measures are key to navigating this stage effectively.

Indicators that the Business is Ready for Expansion

Knowing the right time for business strategy and development is crucial. Here are a few indicators that tell you it's time to branch out. If any of them are true to your business, be ready to take the next steps:

• You have been successfully running the business and making profits for the last three years or more
• You have built a loyal customer base, and your customers are demanding a growth
• You have a strong team of workers to support business growth and development
• You have a positive and steady cash flow
• You can handle more business successfully without hassle
• The demand for your products or services has increased among customers
• Your current workplace or storefront can no longer handle your growing customer footfall
• You have the latest business software and operational systems in place
• You are part of the fastest-growing industry in India

Best Strategies for Organic Growth Business

Once you are determined for business growth and ready to make a move, consider these strategies to take your company to the next level:

1. Add to Your Product Offerings

As a savvy entrepreneur, you should continually evaluate the market and explore opportunities to add new offerings to your product or service line. Begin with market research, get feedback from your current customer base, and enquire if they are willing to pay for the product or service you plan to launch. The idea is to not move too far away from your primary business type and nature. For instance, if you sell footwear, an expansion would mean offering accessories, socks, scarves, etc. It will become too far-fetched if you start offering baked products. The key is to diversify the offerings with products that complement each other.

2. Optimise Your Current Market

Business growth does not necessarily mean attracting new customers. It could also mean selling more to the current customers. This strategy involves segmenting the market to reach customers with high chances of buying from your company. It divides customers based on specific criteria, such as their buying history, location, gender, age, etc. After identifying your company's most profitable market segment, direct your marketing efforts towards that segment and plan business expansion accordingly.

3. Be An Industry Leader

While expanding your business may seem counterintuitive, narrowing down the market segment according to the customer base is a good strategy for business growth and development. Focusing on the niche market supports market optimisation to achieve a logical end. It is a highly specific market subset that can make you an industry leader within a particular product or service. The benefit of becoming an industry leader means less competition and fewer resource requirements. Moreover, it results in higher customer loyalty and stronger organic growth business through word of mouth.

4. Explore and Enter New Markets

When you enter new markets, you try selling your current products or services to more customers. They could be in a new location, different market segment, or new selling platform. A Business Capital Loan would be crucial to invest in a new place, employees, setup, furniture, marketing, etc. It could mean opening a new store or branch office or focusing the marketing effort on a different customer segment.

5. Explore e-Commerce Sales Channels

If you have been running your business through a brick-and-mortar location only to date, making it available online would be a revolutionary way of extending your market reach. To begin, create an e-commerce platform using a reliable website builder, focus on digital marketing and SEO efforts, and attract customers to your new location. Creating a store using a major online marketplace like eBay or Amazon is another business expansion strategy that makes your store more discoverable for potential customers. Moreover, don't undermine the significance of social platforms like Instagram, Pinterest, and Facebook to expand your digital footprint.

6. Conduct Competitive Analysis

If you are not sure how to grow your business, discover what your top competitors are doing. Have they launched a new product or service recently? Have they entered a new location? What is their strategy for building short-term working capital? What about their marketing strategy? Analysing your competition helps you understand what you can do for your business next and grow in new ways.

7. Franchising

Franchising is an excellent business strategy to allow more entrepreneurs easily replicate your business and build your brand name. In a franchising model, you license your business procedures to other entrepreneurs who sell your products or services in different locations. Although it is a complex and expensive procedure, it is a common arrangement in most of the fastest-growing industries due to its rapid growth potential.

How Much Does a Business Expansion Cost?

The cost of business expansion largely depends on your business type and strategy. For instance, opening a new business location or expanding the product offerings is costlier than conducting competitive analysis and leveraging e-commerce platforms. Whichever approach you focus on, you might need external financing to cover the costs upfront. A Business Capital Loan is a beneficial financing option that helps cover various growth-related expenses without end-use restrictions. We, Hero FinCorp, are a well-established NBFC offering unsecured Business Loans of up to Rs 40 Lakh at competitive interest rates. The repayment tenure may extend to 60 months to keep EMIs easy on your budget. So, identify your requirements and apply for a Business Loan on our website to get the required funding for your business growth.

Conclusion

Now that you know how to grow your business, it’s time for action. Achieving business growth requires careful planning and strategic decision-making. One effective way to fuel this growth is leveraging a Business Capital Loan from Hero FinCorp. By injecting the necessary funds, entrepreneurs can invest in marketing and technology, expand operations, and ultimately reach new heights of success. But, it is essential to combine financial aid with a robust growth strategy, focusing on market research, innovation and customer satisfaction.

FAQ:

1. Which is the fastest growing industry?

The fintech industry is witnessing immense growth due to digitisation, technological advancements and growing demand for innovative and convenient financial services. The growth is led by new-age NBFCs like Hero FinCorp.

2. What is a business expansion strategy?

A business expansion strategy is an action plan to enhance an organisation’s revenues and gain leadership by entering new markets, diversifying product portfolios, and acquiring complementary businesses.

3. What are the 3 C's of business strategy? 

The 3C's of business strategy are Company, Competitors and Customers. Understanding and analysing these factors helps develop effective strategies to leverage company strengths, stay ahead of competitors, and meet customer needs.