There are just four business growth strategies for you to choose from. Let’s talk about them! So in this post, I want to share with you the four different business growth strategies you can choose to implement in your business. We call it the Ansoff model or matrix.
The Ansoff Matrix was developed by a Russian American H. Igor Ansoff and published in the Harvard Business Review in 1957, in an article titled “Strategies for Diversification.” Its framework has been instrumental for generations of marketers and business leaders a quick and simple way to think about the future growth.
1. Market Penetration Strategy
So basically the choices for you are, if you want to grow your business, are you going to find more Betty and Bobs in order to sell your product or service to? We call this a market penetration strategy.
2. Market Development Strategy
The second choice that you have is a market development strategy. This is where you take your product or service and whoever you’re selling it to right now, you go and develop new markets in order to sell your products and services. Now, those markets could be new niches for you to go into, or they could be new geographical areas for you to move into. It doesn’t matter. We call that a market development strategy.
3. Product Development strategy
The third option, the one that most of my entrepreneur clients like to pursue, is the product development strategy. Product development strategy involves developing new products and services for you to sell to clients that you already have.
4. Diversification Strategy
And the final one we call diversification. That’s a lot like starting a new business. It’s where you develop new products and services for new markets.
So, which one should you choose for your business?
I say to my clients, why don’t you think in a three-month block because three months right now is a really long time, and why don’t you focus on just one of those business growth strategies? That’s right, just one of those strategies.
Which one should you choose?
Well, the place to start is to do a SWOT Analysis of your business. Go through your strengths, go through your weaknesses. Then the things internal, the things that you can change in your business, the things that you do well, and the places in your business where you have little hold, the things that you don’t do quite so well. Go through your strengths and weaknesses. You want to have great clarity about your strengths in particular.
The second thing you need to do is look outside of your business. Look at what’s happening in the world. Look at what’s happening in your marketplace. Look at what’s happening with your competitors. And look for opportunities. You want to match your strengths to the greatest opportunities available to you, and then pick which of those strategies is going to work best for you, and then focus. Focus, focus, focus!
I know you’re an entrepreneur. I know you like to create, but I also know that you like to have money in the bank account. So the key to you is to pick the business growth strategy that’s going to work the fastest for you. It might not be the most exciting right now, but it’s going to be the most profitable. So, choose your business growth strategy and focus for the next three months.