Small businesses make up the vast, vast majority of the UK’s business population.
Yet today, this vast majority faces the struggle of a lifetime, as numerous disparate variables conspire to create a difficult landscape in which to succeed.
Between Brexit and inflation, the competition got much harder.
For the newer entrepreneurs to join the fray, it can be hard to know what to prioritise when seeking growth, particularly in these times. Where should you start?
Target Customer Loyalty
Growing a business equitably means growing turnover – which, in turn, means engaging with your customer base. Too many start-ups make the mistake of targeting new customers and rapid expansion.
This might make the most intuitive sense, but can often be unsustainable, and does not guarantee that turnover will even plateau, let alone continue to rise.
The target, instead, should be customer loyalty
. By creating returning customers, you are creating a bedrock of support on which to grow more sustainably. You are also building a rock-solid stream of income which will shrink less than others in difficult economic times.
As such, you are future-proofing your business.
Customer loyalty can be targeted through incentive marketing tactics, such as exclusive discounts for mailing list subscribers, and loyalty schemes.
Improve Staff Retention
Creating a growing business is not just about looking outwards, though.
The internal infrastructure of your business needs to match your ambition.
You might not have the capital to fund internal growth, such as adding new roles or departments, but you do have control over who you hire and how they are treated.
Robust hiring and onboarding processes attract reliable candidates, minimising the cost of staff turnover to your business.
Departmental roles can be ‘outsourced’ to software, too; HR software can ensure staff have access to resources and documentation without incurring additional expensive salaries.
Diversify
If neither of the above tactics yield meaningful results when it comes to short- or medium-term business growth, then it may be time to consider that the problem is not in infrastructure or marketing; rather, the problem can be found in the market itself, or your product.
The market may already be saturated, with competitors having beaten you to your target demographic. Alternatively, your product simply may not stack up against competitor products in terms of quality or desirability.
With this in mind, your best move would be to diversify.
Opening new product or service lines opens you up to new customers and even new markets – whether adding a new treatment in your beauty salon or devising a new product in an adjacent industry.
