When I work with business owners on developing and implementing successful growth strategies, most of the entrepreneurs I work with are unable to succeed in achieving the growth they want for their businesses because they initially fall into one of two camps: either their ideas for how to grow are way too broad or they're way too specific. Just like almost everything else, when developing a growth strategy you need to find that sweet spot.
Those whose ideas are too broad basically try anything and everything but don't do any of it well while those who are too specific get obsessed with specific tactics instead of working on a solid strategy. This video will help you understand your options for growth so that you can find the right amount of focus for your growth strategy. If you decide to work through it, grab the worksheet at the bottom of the blog post for just $1 to help you through it.
Jumping in now: the first thing that you need to understand about developing a growth strategy is that it comes down to a simple decision tree that starts with a set of binary choices. There are really only two ways to grow your business: either you sell more stuff or you make more on each unit of stuff you sell. In business terms, you either expand the market or improve your margins. Let's say you want to sell more stuff – the next binary choice you have to make is whether you'll sell more of the same stuff or you'll also some different stuff. Again, the business translation would be you either expand your market share or you diversify your offerings. Again, let's say you've chosen to sell more of the same stuff: you have another binary choice: sell that stuff to more people, aka expand your customer base, or sell more of that stuff to the people you already sell it to, aka increase the lifetime value of each of your customers.
That just takes you down one path on the decision tree but you can take a look at the decision tree by purchasing the worksheet below.
The first step to developing a solid growth strategy, is to explore the options on this decision tree and determine which expansion options would provide the highest ROI for your business. You can do that by grabbing the worksheet below for just $1 and walking through the process for your own business. The point of this exercise is to provide some structure for those who are overwhelmed by a too-broad view of growth strategy and to pull those who are tangled up in tactics back out to the basics of strategy. You should land on 1-2 of the highest potential expansion options and you can then build a strategy and define implementation tactics around those options.
Source: Venture Catalyst Consulting.