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?
- What would it take to convince the firm's customers that they should
buy in larger quantities?
- Are there additional uses for a product not yet explored by customers
or the firm?
- Are any customers buying some items from the firm, and some from a
competitor? What offer would encourage the customer to give the firm all the
sales?
- Would additional staff, promotion, longer hours, better customer
service or any other alteration in the firm's business practices lead
customers to increase their purchases?
- How would an add-on, product improvement or assortment change help
sales?
2. Can growth be achieved by selling new products or services to previous
and existing customers?
- After purchasing a product from the firm, are customers buying
supplemental or related products from another vendor? Could these add-on
products or services be part of the firm's product line?
- What new products are needed by present customers? Would these new
products fit into the firm's corporate strategy?
3. Can growth be achieved by finding new markets for present products?
- What additional resources would be needed to expand geographically to
sell to new customers?
- Which foreign markets are most appropriate for the firm's product?
- Are there customers of a different age, income level, industry or other
characteristic who are not presently customers, but have a need for product?
- Can the firm's products be used to serve more than one need? Can it be
sold to a different group of buyers based on a need not yet promoted?
- Is a competitor with a sizable market share changing products or
business practices? Will the change allow sales to a competitor's previous
customers?
- Would a change in brand name, packaging, channel of distribution or
other marketing variable allow sales of the firm's present product to new
groups of customers?
4. Can growth be achieved by developing new products or services for new
groups of customers?
- Are there unmet needs in the marketplace that are emerging as a result
of changes in technology, lifestyle, the economy or other conditions?
- What additional products are sold by others in industry, but are not
presently part of the firm's offerings?
- Are services being purchased from a vendor that could be supplied by a
firm expansion?
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.