The main reason that some people take opportunities when they arise, and others do not, is that some people are ready.
They have their business plan ready and all they need to do is take advantage of the opportunities.
Where can you find the right business plan?
If your business is based in the United States - click here
If your business is based in the U.K. - click here
Ideas To Action.
Part 48 - Increasing Market Share.
All business owners know they must increase their market share.
But how do you do that, and how do you do that without ruining your business?
Having answers to these questions will help you develop a full picture of your market, and also pinpointing your immediate competitors, placing your business in a stronger position to gain a larger share of the market:
- Who are your present customers? Could there be other groupings that could require your goods and services that you may not have focused on before? Can your goods and services be used for reasons that you had not previously considered, meaning they are more attractive to a larger market?
- What are your competitors strong points? Does your business have these as well? If not then why not - and should your company have them?
- Why do people buy from other organizations? What are the advantages you have that your competition does not, which may bring their current customers to your organization? How can you communicate with your competitions customers to make sure they switch and buy from your business instead?
- What is your organizations USP?
- Aside from obvious rivals, are there any other sellers with customers your products and services may appeal to?
- Are there clients who have stopped buying from your company? Have you found out why? If you have not done so yet, you must ask them.
- Are you looking to adjust your prices, marketing, delivery and service levels? If you are, could those changes trouble your present clients? Will your employees remain motivated?
Most small-scale organizations grow by taking opportunities to diversify, albeit there are problems because of the inadequate resources that you may have. You need to recognize the uncertainties, and the expense of opting for expansion, as opposed to the benefits.
Diversifying your company might take quite a few forms, including:
- new, related products promoted to the current clients of your business,
- fresh markets for your current goods and services and
- new goods and services for new marketplaces.
Determining how you diversify relies upon you having:
- realistic market and customer research for any new product or service,
- a positive growth strategy - that includes trying a new product line or service for a defined test period with prototypes and exploratory promotional campaigns before wholly committing to the venture and
- sales, promotional and supply chain processes that can handle the new demands for your business.
Profitable businesses are run by smart owners that are looking to increase their market share.
And when they do to turn this into increased profits, within a structured, focused organisation.
Increasing Market Share
You need to be honest about the costs of your organizations expansion and what your options are if any setbacks arise. Whenever viable, try to limit any headaches by acquiring sales or pledges in advance.
While diversification can put forward some problems, such as high-priced hold-ups and misunderstandings owing to a lack of knowledge or savvy in the newer area that you are looking to target, it also restricts the repercussion of variations in your new marketplace. In straightforward terms, if you provide a single product or service and consumers stop buying it, then your business is exposed. If you have assorted items and the demand for one of these declines; at least there is money coming into your organization from the others.
In saying that, should you expand too fast, then you might lose track or dilute the primary product or service of your business.
Ordinarily speaking, branching out with similar products or services and offering them to your present clientele is not nearly as risky than developing items for an absolutely new market for your business.
You can also grow your organization by collaborating with another business. While this will produce slower decision-taking, concessions, and possible management and employee issues to deal with, there are specific benefits.
Rewarding partnerships will deliver:
- extra resources,
- sharing of the managerial load,
- a larger skills and talent base,
- a bigger pool of contacts for your business,
- a boost in market sectors,
- more variety with natural development utilizing increased resources and
- less commercial risk for your business.
Ideas To Action - next
A Great Business did not just happen - It was planned that way.