How Does a Corporation Grow: Everything You Need to Know
Growing your business isn't just an obvious and worthwhile goal; it can also secure your business's survival and your own financial future.3 min read updated on January 01, 2024
How does a corporation grow? Growing your business isn't just an obvious and worthwhile goal; it can also secure your business's survival and your own financial future.
How to Grow Your Corporation
- Maximize your existing market
Your first thought when it comes to growing your business might be to attract new customers, but the truth is that your existing customers are your best bet for growing your sales. It's simpler and more cost-effective to persuade current customers to buy more from you, than to find new customers and persuade them to buy for the first time. In fact, it costs three times as much money to obtain new customers as it does to sell to an existing customer. Other sources mark this number as four to ten times more!
Creating a customer loyalty program can be a great way to keep your customers coming back. In addition, it may help you acquire new customers as well. Providing an attractive incentive for your customers to spend more money with you has long-term benefits.
Another technique to maximize your current market is to build an email list. Here you can offer customers exclusive deals and perks while simultaneously keeping your company in their minds. Email lists offer a personal touch and can strengthen your company's image.
- Request referrals
Although growing your business through existing customers is your best bet, that doesn't that attracting new customers isn't a valid approach of its own right. Keep in mind, though, that customers aren't likely to simply spread the word about your business on their own. Kindly and actively seek referrals by asking your customers after every sale or service rendered if they know anyone who might be interested in your business's products or services.
- Develop new uses for your product or service
Innovation is a fantastic way to get both new and existing customers interested in your offerings.
- Expand your market reach
To reach more potential customers, expand your market to new locations or demographics. The most obvious ways to do this are to open additional stores in new locations and to increase your advertising range. Try marketing to different demographics. If you want to reach young people, social media may be your best venue.
- Participate in conventions and trade shows
Conventions and trade shows have the unique advantage of attracting people who are already interested in the kind of service or product your offer, which can naturally impact your bottom line. Keep in mind that finding the right convention or trade show for your business is the key to success in this arena.
- Take over a niche market
This strategy relies on the concept of “a big fish in a small pond.” Narrow your group of customers to those who desire a particular product or service that is currently unavailable, and then meet that need through specialization.
- Lower your costs
Don't forget that increasing your bottom line can be achieved by lowering your overall expenses. The difference between pre-and post-tax money proves this strategy to be a very effective one for business growth. The most impactful ways to lower your costs are liquidating your weak products and improving the turnover of your inventory.
Take a look at your operations and identify where you can lessen expenses by automating back-of-house activities like ordering supplies or sending invoices. Be careful not to automate customer interfaces too much, as you'll lose the personal touch that many customers appreciate.
- Diversify your offerings
To maximize growth through diversification, focus on similarity. Your market will typically want a particular kind of product or service. For example, if your market is the adventurous, outdoor-loving type, you might sell mountain bikes during the summer and skis and snowboard during the winter. Perhaps you could even partner with a white water rafting company and give referrals that return a commission to you.
If your business is successful and its operations can be duplicated, franchising is a worthwhile option. Many small-business entrepreneurs have become well-known and wealthy through franchising their company.
- Export your products
Like franchising, exporting requires a significant commitment of time and resources, but can be a highly rewarding way to grow your business. Reaching international markets can significantly boost your company's bottom line.
If you need help understanding how a corporation grows, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.