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Monday, 20 February 2012

The Steady Growth Of A Good Company

By Larry Oaks


Every business demands growth, and double-digit growth is the dream of every dedicated business owner, even when lackluster results show up at quarter's end.

Business owners could really benefit from a guide that could direct them to a steady growth. Companies can grow even in hard times, as Starbucks, Wal-mart and Harley Davidson have shown possible. And it wasn't just the big companies that reported profits in a poor economy; smaller companies such as Oshkosh Truck and Paychex have also reported gains and profits.

Here are 5 disciplines of sustained growth:

Take good care of your customers. Once you have gained a good customer base, engage in a type of relationship with your customers which discourages their going off with your competitors. Tailor your products/services using data gleaned from your customers giving you an advantage. If you can continue being proactive with your customer service, you will be ready to deal with it, should a problem arise. Bonding with customers wherever emotion is tied to an interaction is another great way to retain them.

Gain Market Share at the Expense of Your Rivals. Give customers a reason to abandon a competitor's product/service for yours. Do what it takes to lower the switching costs. It's not easy to take customers from a competitor, so do what you can to offer something valuable. Great quality and value are two things you almost definitely need to offer. You could, on a different strategy, buy the competitor, and retain the customers that way.

Make the most of market position. Try to detect where growth is taking place. You can accomplish this by watching the shifts in buying criteria, market demands in your particular sector, service innovations, and market trends. You must be able to spot positioning opportunities to make the most of them by continually using a systematic approach to the process.

Dive into other markets. Before taking the chance of seeping into a nearby market, make sure you determine your chances of long term growth and profits. This is possible if you can match a competitor in value and quality, and you can offer customers more than the competitor offers.

Try new lines of business. No matter what you do, avoid overpaying for a new line. Assess the new business for profitability and leadership team, and work in simple business strategies to create the partnership.

A successful business portfolio does not need to be based on all fives of these guidelines, but it should definitely be based on more than just one. The more balanced your portfolio is, the more you can keep afloat during harsh market conditions.

As I close this article, I would like to take the time to wish everyone a happy and safe Memorial Day; enjoy the time with your families and be safe on the road.




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