CEO & Founder of National Business Capital, the leading fintech marketplace offering streamlined small business loans.
Small businesses account for a significant portion of the economy, creating two-thirds of new jobs and accounting for 43.5% of the US GDP. From state to state, small businesses provide goods, services and tax dollars that benefit their local communities.
Most small-business owners want to grow their income, and many want to earn that first million dollars in their business. But, unfortunately, over half of small businesses don’t survive longer than five years.
This doesn’t have to be the case. It’s entirely possible to grow your business to its first million and beyond. With the right strategies, you can transform your small business and reach your goals, but don’t expect the change to happen overnight. Here are a few methods successful entrepreneurs adopt to take their businesses to the next level.
Reverse Engineer Your Goal
Most businesses start out with a major goal they want to reach, whether that’s selling a certain number of products or adding a certain number of repeat customers. While it might be difficult at first, a great way to meet a big goal is by reverse engineering it.
When you reverse engineer a goal, you start with the end in mind and work backwards to figure out how you’ll make it happen. This allows you to figure out the actions you need to take, and it keeps you from getting overwhelmed and giving up.
For instance, let’s say your first goal is to sell 1,000 products in your business. Here are some questions you can ask yourself to reverse engineer your goal:
How long will it take to accomplish this goal? What resources do I need to make it happen? How will this help my business in the long run?
Understand Your Customers
When you started your business, you probably did target research to understand who could benefit most from your products or services. After all, you have to know your audience to effectively market to them.
You should continue to try to understand your customers, even after you’ve acquired them. Now that you have more data, you may realize that your customer base is slightly different than you originally thought.
You may also see an opportunity to serve a new, untapped customer base. If it’s something you find is worth pursuing, you can use this information to ensure your products and services are designed to meet the needs of your customers.
Hire The Right Team
No business owner can succeed without the right team to support them. So, if you continue to grow and scale your business, you’ll need to hire more employees.
Expanding your team involves:
Holding out for the right people: As your business grows, you want employees who are in it for the long haul. It’s better to opt for fewer, higher-quality hires instead of hiring a bunch of employees who will jump ship at the first sign of trouble. Improving your onboarding process: An efficient onboarding process will improve your workplace culture and make joining your business much easier. Growing your HR department: Building on your HR department and adding more training will make it easier to handle an influx of new employees.
Take your time growing your team. The employees you hire will directly impact the success of your business.
Invest In Thought Leadership
Another way to transform and scale your business is to become an expert in your industry. Look for opportunities to demonstrate to your target audience that you’re an authority in your field.
Let’s say your company produces business-to-business marketing software. By establishing yourself as a thought leader, you’ll naturally become more trustworthy and credible with your target audience.
You can do this by creating content that shares your knowledge and expertise in a way that’s easy for others to understand. For instance, you can do this on your company blog or by posting on LinkedIn.
Conduct A Competitive Analysis
One of the best ways to transform your small business is to outperform your competitors. But, of course, that’s only possible if you do a competitive analysis.
Take a long, hard look at your top competitors and analyze their prices, product lines and customer service. Through this research, you may come up with some ideas for how your business can stand out in the market.
Find Ways To Upsell Current Customers
If you already have a healthy number of customers, you may be able to upsell to them by offering products like:
Upgraded versions of existing products, such as software solutions with more features. Free shipping to customers who make regular purchases. Loyalty program discounts or special offers, which can drive repeat purchases and customer loyalty.
Upselling your current customers is one of the best ways to maximize your revenue streams. It’s cheaper to keep an existing customer happy than it is to acquire a new customer.
Look For Ways To Scale
Finally, try to look for ways to scale your business. That could mean hiring more employees, opening a new retail storefront or launching an online store alongside your existing retail storefront. Scaling is the best way to grow your business and increase its market share in a competitive industry.
But be careful not to scale too quickly: Always expand your business within your financial means. For instance, don’t open a new store if you are barely breaking even with your current location.
As you can see, there are lots of ways to successfully transform your small business and scale to your first million and beyond. Hopefully, the tips outlined in this article gave you some ideas on how you can build momentum in your own business.
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