Sales Growth

Entrepreneurs often define growth as an increase in sales. While plan strategies for increasing sales are often specific to business type, most strategies include consideration of the following questions:

1. Can growth be achieved by selling more of your existing products to former or existing customers?

2. Can growth be achieved by selling new products or services to previous and existing customers?

3. Can growth be achieved by finding new markets for present products?

4. Can growth be achieved by developing new products or services for new groups of customers?

If the selected method of sales growth is to increase sales to previous and current customers, strategies must include: the production of quality products that meet the expectation of the customer, the delivery of excellent customer service, and pricing that assures the buyer of value. Repeat sales rarely happen simply out of habit or convenience, but because a customer was satisfied with the initial purchase experience. It is less expensive to sell to a present customer than to find new ones, yet many firms develop the majority of their strategies with their sights on the new customer. Always start any search for increased sales with a thorough knowledge of present customers and their needs. Even if you find you can't sell more to them, the knowledge gained can be applied to strategies used to win new customers.

If business expansion occurs as the result of selling new products to present customers, experience with those customers is advantageous. The firm already understands their needs and their buying habits, and has mailing lists and other data allowing the introduction of new products in a cost-efficient way. Market research on the many factors affecting the buyers' purchasing habits should be undertaken as a part of the growth plan.