New business owners have numerous
goals when they're starting out, including rapid growth and recognition for
their fledgling venture. But overnight success isn't often the standard:
There's no specific "special sauce" to add to the recipe for instant
results, and nothing is guaranteed.
However, there are ways to reach
growth milestones that can catapult a business to success. We asked small
business leaders to share their tips for accelerating growth.
Hire the right people
Before you can even think about your
company's growth trajectory, you need to ensure that you have a solid staff
that can help you achieve it.
"With a small business looking
to grow, it's important to have the right players at the table," said
April Davis, founder of online dating service Cupid's Cronies. "They
need to be people who aren't afraid to roll up their sleeves. The words 'That's
not my job,' do not exist in their vocabulary. They have to be dedicated to the
mission."
"Hiring the absolute best people
you can is a surefire way to ensure fast growth," added Christian Lanng,
CEO and chairman of business software provider Tradeshift. "It's all
about having the right team."
Focus on established revenue sources
Rather than trying to acquire new
customers, direct your attention to the core customers you already have, said
Bill Reilly, a Wisconsin-based auto repair entrepreneur. You can do this by
implementing a referral or customer loyalty program, or trying out
marketing strategies based on previous purchase behaviors to encourage repeat
business, he said.
This focus on your established market
is especially important if you're trying to get funding.
"In the past, we would highlight
our business goal to become a franchise, which didn't resonate with
banks," Reilly said. "We learned to emphasize that there is a large
market for what we do. This would pique a banker's interest because he or she
cares about the return on investment more than your business aspirations."
Reduce your risks
Risk is an inevitable part of
starting and growing a business. It's impossible to control everything, but
there are plenty of ways to limit internal and external threats to your company
and its growth. One important resource to help you accomplish this is your
business insurance provider.
"Small businesses need to manage
their growth to avert disruptions that can bring business to a grinding
halt," said Mike DeHetre, vice president of product development at Travelers.
For example, "the theft of employee data, customer records and product
designs can destroy a small business, generating significant costs and eroding
customer confidence and loyalty," he said. "Not every business
owner's policy covers data breaches or other cyber losses. Small businesses
should be prepared by seeking insurance products that help them recover,
including those that cover the cost of remediation and lawsuits."
As small businesses grow, they may
add space or equipment, create new products or services, or increase their
operating and distribution footprint, so DeHetre advised periodically reviewing
your policy to ensure you have the right coverage.
"It's easy to forget this step
amid rapid expansion, but you don't want to find out that you've outgrown your
coverage just when you need it the most," DeHetre said.
Be adaptable
One trait that successful startups
often have in common is the ability to switch directions quickly in response to
changes in the market. Lanng noted that an agile approach to development, both
in terms of your product and your company, will help you grow more quickly.
"By allowing yourself to adapt
and change quickly, you're able to test different approaches to business and
find out what works best," Lanng told Business News Daily. "It allows
you to fail, pick yourself back up and keep going."
Chris Cornell, founder and CEO
of Manhead Merchandise, said his company has found adaptability to be key
in expanding its client base beyond the music industry.
"Look to current pop culture
trends for an opportunity to become part of the movement, when it makes
sense," Cornell said. "In an era of internet-fame, we looked to
expand our horizons beyond the music industry. We partnered with 'The King of
Pop Culture' and insta-famous pup, Doug the Pug to release his new
gear. Recognizing the reach and popularity of Doug, we were able to take his
merchandise to the next level, extending our business model beyond
bands."
Focus on your customer experience
Customers' perceptions of your
business can really make or break a business. Deliver quality experiences and
products, and they'll quickly sing your praises on social media; mess it up,
and they'll tell the world even faster. Fast growth depends on making your
current and potential customers happy with their experience, DeHetre said.
"Compared with large companies,
small businesses are nimble, and often better able to see, anticipate and
respond to their customers' needs," DeHetre said. "The most
successful small businesses exploit this advantage, by bringing new and
innovative products and services to market more quickly and developing and
nurturing long-term customer relationships."
Dennis Tanjeloff, president and CEO
of Astro Gallery of Gems, agreed. He said listening to your customers and
giving them what they want is of utmost importance.
"Diversify your offerings so you
can best cater to the customers' changing tastes," Tanjeloff said.
"Remember, you are here to serve the customer — it's why you are open for
business." Cornell noted that engaging with your
audience is crucial, but personalizing the experience can boost and strengthen
that relationship. "At Manhead, we come up with
unique creative designs, customized storefronts and pop-up shops personalized
for each band [we work with] to help them engage with fans in a new way,"
Cornell said.
Invest in yourself
In the early stages of your
business, you'll likely see a very lean profit margin (or no profit at all), so
any money you do make should go directly toward helping you grow.
"A startup's ability to invest
in itself [helps] accelerate growth," Lanng said. "In those early
years, it's critical to make sure that you're redirecting any revenues back
into the company. It's vital to invest early and heavily in order to grow
quickly."
Always think ahead
While agility is an important quality
for a startup, you can't fly by the seat of your pants when you're running a
business. Planning your next step, even if that means anticipating all possible
scenarios, is the best way to stay grounded and secure as your business
evolves.
"Set the foundation in place,
water it and watch it grow," Davis said. "If you do the foundational
work, when you experience growth, it won't be that difficult to adjust, since
the hard part is already done."
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