Growing businesses are the backbone of a developing economy. The more businesses open up, the more jobs, opportunities, and competition they create, leading to quality products and services. That said, you may have to polish your entrepreneurial abilities to get ahead.
The US Chamber of Commerce indicates that small businesses in the US have increased by over 33.2 million, accounting for 99.9% of all businesses in the country. These businesses created 63% (two-thirds) of new jobs until 2021, with 5.4 million new businesses registered in that year.
However, despite these impressive numbers, studies have shown that only about 50% of small businesses make it past the five-year mark. However, you can avoid failure with the right strategies and a willingness to learn and adapt.
This article will explore some of the most effective ways to grow your business as a new entrepreneur.
1. Get an MBA
Getting a Master’s degree in Business Administration (MBA) can be a significant step toward achieving success in the business world. An MBA program can provide you with a comprehensive understanding of the complex dynamics of modern business operations, equipping you with the skills and knowledge necessary to make informed decisions and drive growth.
Register in an online MBA school to learn business theory and apply it to your business for maximum output. The biggest advantage of an MBA is that it equips you with practical skills and knowledge by engaging in live business cases, examining real-life business scenarios, and uncovering the most complex business problems. You will get hands-on experience to instill the entrepreneurial abilities required to thrive in business.
Moreover, you can expect a significant return on investment as an MBA graduate in terms of career advancement and earning potential. The more qualified you are, the more successful you will be as a business owner.
2. Research Your Market
Conducting thorough market research is essential for a business looking to succeed in today’s highly competitive landscape. By deeply understanding your target audience, you can develop products or services tailored to their specific demands. It can increase customer satisfaction, higher sales, and greater profitability.
Market research involves gathering and analyzing data on your target market’s size, characteristics, and behavior. It can include demographic information, such as age, gender, and income. Psychographic information includes values, beliefs, and attitudes. Collecting and analyzing this data, you can identify key trends and patterns that can help inform your business strategy.
In addition, market research can also help you assess your competition. You can identify opportunities to differentiate your business and gain a competitive advantage by analyzing your competitors’ strengths and weaknesses. It involves identifying gaps in the market that your competitors need to address or developing unique value propositions that set you apart.
By combining your market and competitor research, you can identify emerging trends and changes in consumer behavior. It can be crucial for adapting to evolving market conditions and staying ahead of the competition. By staying updated with industry trends, you can identify new opportunities for growth and innovation.
3. Build a Sales Funnel
Building a sales funnel is a critical component of any successful business strategy. A sales funnel is a framework that guides potential customers through a series of stages, from awareness to purchase, to convert them into loyal customers.
Businesses with a well-constructed sales funnel can significantly increase their conversion rates. According to research by the Aberdeen Group, companies with effective sales funnels have a 50% higher sales growth rate than those with ineffective sales funnels. Moreover, businesses that implement a well-defined sales funnel are 33% more likely to see an increase in sales and revenue.
A sales funnel typically consists of four stages: Awareness, Interest, Decision, and Action (AIDA). The first stage involves creating awareness of your brand or product through advertising, social media, and other marketing channels. The second stage involves generating interest by providing valuable content, building relationships with potential customers, and addressing their pain points. The third stage involves guiding customers toward a purchasing decision by providing persuasive information and overcoming objections. Finally, the fourth stage involves prompting customers to take action, such as purchasing or signing up for a subscription.
To build an effective sales funnel, you need to understand your target audience and their needs. It involves creating buyer personas representing your ideal customers and tailoring your marketing messages to address their pain points and motivations. It would help to develop a unique value proposition that differentiates you from your competitors.
4. Increase Customer Retention
In today’s highly competitive market, retaining customers is as important as acquiring new ones. Studies show that increasing customer retention rates by just 5% can boost profits by 25% to 95%, with 65% of purchases done by repeat and returning customers.
Moreover, retaining existing clients is seven times less expensive than acquiring new ones. It is because your existing customers already know and trust your business and keep coming back to you for more. On the other hand, reaching new customers via marketing channels and acquiring them may take more time, effort, and money.
Businesses must build strong customer relationships to increase customer retention rates. This involves providing exceptional customer service, delivering high-quality products or services, and creating a positive customer experience at every touchpoint.
According to research by Deloitte, 86% of customers will pay more for a better customer experience. Research by PWC uncovered that customers are willing to pay more for a positive experience. It highlights the importance of investing in customer service and ensuring your customers feel valued and appreciated. One way to achieve this is by implementing a customer loyalty program, which rewards repeat customers and encourages them to continue doing business with you.
Another way to increase customer retention is by soliciting and using customer feedback to improve your products or services.
Moreover, businesses can leverage technology to improve the customer experience and increase retention rates. For example, implementing a chatbot on your website can provide instant support and assistance, while email marketing campaigns can keep customers engaged and informed about your products or services.
Growing a business as a beginner can be challenging. However, you can set yourself up for success by implementing the strategies outlined in this article, including getting an MBA, researching your market, building a sales funnel, and increasing customer retention. Implementing these strategies can help you take your business to the next level.