Having a business idea in mind and putting it into fruition are two different things. Searching for business concepts that work takes less groundwork while getting these concepts into reality can be a lot of work. Indeed, it is never easy to get a startup going. While the thought of starting a new business can be exciting, the process of getting it done and keeping it afloat can be extremely overwhelming.
A portion of startups does not make it to a year, while a good number of them also fold after five years. Their failure to grow and expand is due to various factors, including lack of market and lack of capital. In fact, according to studies, at least 42% of these businesses fail to succeed due to a lack of customers. Likewise, around 45% fold because they were not profitable enough and they do not have enough funding to continue with the venture.
How Businesses Can Grow
With statistics showing a staggering number of businesses who fail after only a few months or few years of operations, many entrepreneurs may be put off from starting their own businesses for fear of losing more money in the long run. But expansion and growth are indeed possible for those who persevere.
They only have to find the niche that truly works for them and then focus on growing despite the many challenges along the way. There are several strategies that startup businesses can use to grow and expand despite the obstacles that beset them.
Below are some methods that can be used by struggling startup businesses to expand and grow.
Startup businesses can get financing from banks and other financial institutions so they can fund their startup and growth operations. They may also partner with private equity firms for this purpose. Private equity firms help small businesses fund their future growth, improve their business operations, scale their businesses, and maximize their profitability.
Basically, the private equity firm will inject capital into the startup and provide the needed operational support. Private equity firms use the most feasible private equity marketing strategy to make sure that the business they are injecting funds into will be able to grow exponentially as expected.
Basically, to get a partnership with private equity firms, a startup business will have to sell part of its stake to the private equity firm and let it control some of its important operations. Bringing a private equity firm onboard has several benefits. These firms have experienced management teams who can execute the growth plans of the business.
They can also draft a proper business plan and create a long-term incentive plan to make sure that the managers and employees will have clear goals and that they will strive hard to achieve these goals. Most of all, these firms have the capital needed to run the business and fund its growth.
Employ Competent Employees
Skilled employees are needed for the growth of any business. Without them, it will be impossible to expand and operate in some other locations apart from the main branch. Competent employees can step up and take charge of the operations of the new branches without so much hassle.
They can also take care of the new product line or even new customer accounts without the need for supervision. The presence of skilled and competent employees can greatly enhance the growth and profitability of any business venture.
Take Care of Customers
Businesses are relatively dependent on the purchasing power of customers. Without customers, the business will not thrive. Taking care of customers by giving them exceptional service should be on the priority list of startups who want to succeed in their operational and expansion plans.
Use New Technologies
We are now in the digital era and businesses can make the most out of these digital marketing devices easily to help ensure growth and expansion. The Internet is a reservoir not only of knowledge but also of marketing gateways that can help make businesses achieve their growth potential.
One of the most powerful tools to use for marketing in this digital age is social media. It helps build brands and expand the customer base.
Give Back to the Community
Participating in community events or sponsoring a community activity is one great way to connect with would-be customers and existing ones. It makes the brand known and builds credibility.
Startup businesses may find it hard to get their brands across their target markets and build a strong following. But by using the right strategies for growth, expansion can become achievable.