A huge number of small businesses reach a kind of profits plateau, in which a company suddenly stops growing even when it’s still running smoothly.
Your exponential growth stops, and worse, sometimes it even turns to a downward slope. Your profits start to grow smaller, even when you practically have succeeded in everything you have planned for your business.
Of course, you want to focus on making your business grow much larger than it is now. But what happens when all the hype around your business die, and it’s now your turn to make the next move to keep your profits growing bigger? It must be a physically, mentally, and emotionally frustrating time.
Overcoming this early obstacle is also a dread for small businesses. In this article, we have collected the best advice you can follow to break out of this early slump. Read on!
Number 1: Explore
A niche market is a small market segment on which a very specific product is focused.
You can use this to your advantage by focusing your attention on one single goal; have a well-defined target market, and then explore other markets where you can pour your efforts and resources.
Create a new market niche by trying out alternative uses of your products or services that you haven’t tried before. It may mean a big increase in the number of customers that you can engage and serve.
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In fact, there are numerous examples of companies starting out focused on a different market, but ended up finding success in a totally different market niche. For instance, the founders of YouTube initially planned for it to become an online dating service. Well, look at it now.
If you can think of a way to have a fresh start for your business without rebuilding your product or service, you have a great chance of clearing this hurdle.
Number 2: Reinvention
Now, if you think that exploring other market niches won’t work well enough for you, you might want to try reinventing your brand.
After some time of being in the game, you may want to check how your customers and even your staff think about your brand. Ask them for their feedbacks.
If you get answers that are mostly not in your mission and vision statements, it may be that you need to overhaul your brand. You may want to change your brand visuals, your logos, your tagline, your mission/vision statement, or even change your brand’s name.
If you can successfully reinvent your brand, you can also reinvigorate your passion and your business. Remember that better branding can get your more loyal patrons, and it may even lead to new business opportunities you never thought were possible.
Number 3: Diversify
Brand overhaul can bring tremendous amounts of hidden costs, and if you only have modest small business, it may not be practical for you to do it right away.
An alternative for this may be diversification. You can try to offer new products or services, and it can give you, again, a great chance to hook more fans and customers into your business.
The trick is to think of a product or service that can complement your existing line of product. You do not have to scrap off all your early business ideas, and it goes without saying that you have to avoid adding completely unrelated products or services to your existing ones, unless you want people to question your business sense.
Number 4: Don’t Fear Technological Advancements
Nowadays, among bigger companies, the bosses keep looking for new ways to accommodate the rapidly innovating tech industry. Some businesses, which were at first totally unrelated to tech, turned into leaders in new markets related to anything technological.
If you are the owner of a small business, you should not be contented of business facility or model that only follows certain traditional ways of gaining customers. Check the news about technology, and see if you can spark up an idea on how to use a new kind of tech hardware or software.
In the digital world, if you presence is seen by many people, it lifts half the burden of a business stagnation. This day and age allow more people to access the internet, and to use it for their own pursuit, so why won’t you?
Number 5: Meet Unmet Needs
Think about this scenario: You are in your shop, and a customer comes in, wearing a fancy suit and tie, clearly meaning business, and very willing to pay huge bucks to get what he wants. However, you recoil from horror when you hear his inquiry, because you realize that the service he’s looking for is not among the things you offer.
You have just lost a very big customer. It is a real pity.
This may be your cue to step up your game, and widen your product or service range. You may also think about the things that need fixing in your business, such as lengthy processing time, few salespersons, old and dented facilities, et cetera.
You have to meet these unmet needs not only to satisfy your regular customers, but also to attract more people willing to pay for the products and services you offer.
Getting over with the early profits plateau tests a businessman’s patience and eagerness to expand his business into unprecedented sizes, and doing so requires immense amounts of wit and thinking. The bottom line is that you should not wait until your profits get smaller and your margins get thinner. Once you see that you’re standing on that plateau, do something about it.
Creativity can take you anywhere, but your initiative and willingness to do such ideas are what it really takes to get to places.
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