Published On: Tue, May 16th, 2017

4 Tips to Evaluate and Grow Your Business

“Growth is never by mere chance; it is the result of forces working together.” – James Cash Penney, Founder of JCPenney

Small businesses drive the United States of America’s economy. Statistics show that only 1% of business are traded on the US Stock Exchange, with more than one -third of the USA working population is employed at a company with less than 100 employees. Finally, unfortunately, the same statistics show that about 50% of small businesses fail in the first four years.

From the above figures, it is easy to see the vital role that the Small Medium Enterprise (SME) plays in the US economy. Therefore, I believe the question that begs is how to ensure that, as an SME owner, how do you prevent your business from failing? Furthermore, how do you ensure that your company keeps on growing?

Evaluating your business

In order to determine the growth trajectory that your company should take, it’s important to establish the value of your business. Effectively, the value of a business can be accurately estimated using the Value Builder System. It is easy to assume that you need to know your company’s value should you wish to sell the business. However, you also need to understand what your business’s intrinsic value is so that you can work out where your company’s hidden assets are, spot the areas that are working counterintuitively to your business’s natural growth path, and define the way forward so that your business can outgrow its competition.

photo supplied Austin Gaines

Therefore, here are four tips to help you evaluate your business:

Look at existing market penetration

To what extent has your existing target market been saturated by your products? Even though the process of converting visitors to your business into returning customers should be a priority, it is vital that you do not ignore existing customers. It is far easier to encourage people who have already purchased your products to continue buying your products than it is to break into new markets.

Grow your market reach

Once you have determined how saturated your existing target market is, the next step is to determine how you can increase your target audience. For example, look at opening new branches and opening an online store. Furthermore, it is a good idea to have a look at new and innovative ways of marketing your products.

Diversify your product ranges

A big part of owning a successful business is to ensure that your product development department works hard at creating new products that you can take to market. If you do not keep on with innovative product development, your business runs the risk of stagnating and eventually dying.

Ask for customer referrals

Social media has provided a public platform where your customers can comment publically on your products and customer service. Unfortunately, most people only publish comments when they are dissatisfied with your products and customer service. It is important to turn these negative comments into positives; therefore, it is a good idea to find innovative ways to encourage your customers to refer new customers to your business.

Author: Pankaj Deb

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