A country’s economy is the lifeline that sustains its population. And, small businesses are one of the most vital cogs in the economic machine. Various small companies operate across different economic sectors. Whether it’s a budding online writing service offering business ethics & international economics assignment help or a brand-new retail store with a niche customer base, small businesses are spread across all sectors. 99.9 % of the 28.7 million firms in the USA belong to the MSME category.
Despite all the potential risks, such high numbers show that a small-scale start-up is the choice commercial venture for budding entrepreneurs with limited resources.
The Traits of An Ideal Small Business
The key defining features of an ideal small business can be listed as follows.
- Financially independent;
- Less conformation to fleeting market trends;
- More responsive to significant market changes;
- Ability to avail various microfinancing schemes;
- Lower development costs and higher profit margins;
- Ability to pivot with relative ease;
- Sufficient financial resiliency;
- Opportunity for quick profitability and
- Self-paced growth;
The probability of a small-scale business achieving all of the above in practicality depends primarily on the business owner’s vision.
Intelligent management and the right mindset are essential to reduce potential risks, achieve continual growth & profitability and become financially secure. And, this article shows seven effective ways small business owners can grow their businesses into self-sustaining, profit-making ventures.
7 Tactics For Successful Small Business Growth
Concerted & Consistent Market Research
For a business to make a profit, it needs to have a clear idea about its catering market. Small business owners must understand the needs of the audience they are targeting and any major market trends that might affect their operations.
Small businesses need to be aware of every potential influencing factor from changing customer preferences to supply chain disruptions, economic policies & disruptive entities.
Growing a loyal customer base can be a massive advantage for any business, and the benefits are much more extensive for small business with limited exposure. Similarly, identifying market challenges & opportunities can offer a significant edge over the competition.
Value and profit are two factors driving all major economies. Small or large, the consumer base of any business will look for something of value in return for the time & money invested. Businesses, whether MSME or large, need to deliver that value if they intend to achieve success & grow big.
From the primary product or service to aftersales service & customer support, small businesses need to provide value that customers will appreciate.
For example, a small-scale home-cooked food delivery service HAS to provide quality food and attain on-time delivery if they intend to build a brand image & earn customer appreciation & subsequent loyalty. Top-notch quality food, perfect delivery and commendable customer service will improve reputation, increase customer retention rate, enhance customer loyalty and drive growth & profitability up.
Nurturing & Growing The Customer Base
Caring about your customers is as important as caring about your business endeavor. Treating every customer with value at every juncture is the way to grow.
There are numerous ways to care for your consumer base, such as:
- Nurturing prospective leads,
- Listening to customer feedback,
- Introducing enticing periodic discounts,
- Loyalty schemes,
- Following up on sales activities,
Small business owners must realize that nurturing prospective leads and existing buyers is a highly effective marketing strategy. A satisfied customer is the best promoter of a business. Attracting new customers and attending to the existing ones with intelligent marketing strategies & value-added services should be the company’s top priorities out there.
Careful Financial Management
Financial monitoring and management are essential for every small business. Limited capital & exposure makes small businesses especially prone to market instability and volatility. Growing the profit margin and revenue requires effective, meticulous financial management.
Small business owners tend to have limited capital and calculated revenue sources. Making a profit out of little revenue is a challenge for most small-scale start-ups and requires careful financial management. Boost the financial security of small business by implementing the following tactics.
- Efficient book-keeping (income statement, balance sheet, cash flow statement, tax statements,
- Sound knowledge of Generally Accepted Accounting Principles,
- Monitoring supply price hikes,
- Reducing unnecessary costs,
- Implementing risk-mitigation measures,
- Adopting a lean business model (lean inventory management, elimination of wasteful & low-producing activities, measuring & improving productivity),
- Careful tracking of financial performance,
- Cost-effective marketing techniques
Proper understanding, maintenance & utilization of financial statements is vital for all scales of enterprises.
Engage in Digital Marketing
In today’s digital age, the benefits offered by online connectivity are undeniable. Online or digital marketing is one of the most cost-effective forms of marketing today. As the online population experiences a significant boom due to the ongoing Covid-19 pandemic, the Internet has become an excellent avenue of reaching the masses. A necessity for online small businesses, digital marketing can be highly beneficial to even brick & mortar establishments.
Several digital marketing strategies exist, each requiring minimal capital investment. Here are some of the most effective ones of them all.
- Invest in a well-designed website that’s mobile responsive & offers great UX for direct traffic,
- PPC Advertising,
- Search Engine Optimization For organic traffic,
- Social Media Marketing to connect, engage and convert potential leads,
- Content Publishing such as blogs, videos, etc. for referral traffic,
- Engaging with customers for online promotion,
Carry out effective financial management and invest in digital marketing. High ROI and expansive reach make digital marketing the perfect promotional medium for MSMEs across all sectors.
Implementing Automation & Analytics
Business automation and analytics are the latest innovative practices taking the global economy by storm. From marketing to inventory management & financial performance monitoring, automation & analytics applications & platforms can do them all.
Tangible benefits and insightful assistance offered by these platforms, coupled with drastic developments in recent times, have increased demand across different sectors. Numerous data analytics and business process automation are now available online at economical prices. Comprehensive guidance and lucid interfaces make integration seamless & straightforward. Business automation and analytics tools & services are highly scalable and flexible, makes them ideal for small businesses looking to grow & expand further.
Availing The Right Support
Growing any business requires concerted effort, intelligent managerial practices and access to vital resources. The same goes for small businesses across all sectors. Availing the proper support & resources at the right time can be crucial during uncertain times. Professional & knowledgeable employees, helpful collaborations and appropriate financial support are vital for a small business to grow & prospers.
- Recruit the right people after proper scrutiny,
- Collaborate with people who understand your vision & bring something significant to the game,
- Make use of government grants, loans & other microfinancing schemes for small businesses
Nurturing & growing a small business is a significant effort. Your vision defines your will & impetus to make your business grow & shine. And, your strategies & tactics will determine the rate & level of success in achieving that growth. Align your visions with your plan and manage with intuition, intelligence & flexibility for sure-fire success.
Whether a small business owner or a student, here’s hoping this article acts as a good information reference for every one of its readers. If you are a student looking for university paper help in business management, economics or marketing, always choose genuine academic writing services for assistance.
Author-Bio: Alley John is a senior professor of business studies from a reputed university in New York. A teacher with more than ten years of experience, He is also a visiting professor across significant universities across the states. He is also a part-time academic tutor at MyAssignmenthelp.com, USA’s largest university assignment help provider.