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Whether you want to scale your business through commercial investment properties or project management software, the end goal is the same: increase your revenue while keeping costs low. Achieving that goal allows you to grow your business without sacrificing profitability.
Sounds great, but how do you do it?
In the post below, we look at five proven strategies:
1. Focus on customer retention
A focus on customer retention, rather than searching for new customers, is an excellent and cost-effective strategy for scaling a business. A customer retention focus is all about building strong relationships through stellar customer service.
This kind of service means effectively resolving any customer issues as well as answering any customer queries right away. A strong social media presence can certainly help. Find out where your customers hang out online, engage with them, and offer some personalized promotions.
2. Outsource non-core functions
Core functions are the “profit centers” of a business. They’re the primary activities that generate revenue. If you’re a home builder, that’s constructing houses; if you’re a software company, that’s making software. It’s best practice to keep those core activities in-house.
Non-core activities, however, can be outsourced to specialists. For both the home builder and the software company, those non-core activities may include processing data or paying taxes. They aren’t directly related to generating revenue. Spending too much time, money, and resources worrying about them can take away focus from your core, revenue-generating activities.
To outsource these non-core functions, first, identify what they are. Then, research and contact third-party providers who specialize in that service.
3. Expand what you offer
Expanding what you offer can certainly grow your business. For some, this may mean introducing a new product line; for others, a new or expanded service. These extra offers will expand your customer reach and boost overall revenues.
That being said, it’s important to choose the right products or services. The definition of “right” changes from business to business, but it generally means a product or service that complements what you already offer.
Start with thorough market research to identify any (potentially profitable) gaps in the market. Then, develop a new offering that fills that gap.
4. Collaborate with others
Although business environments tend to be highly competitive, there are plenty of benefits to collaboration. Partnering with a business that’s complementary to yours can allow you both to reach new customers and expand your market share. In line with strategy one, you can then focus on retaining those new customers to further boost growth.
To start collaborating with others, identify businesses that align with your overall values and goals. Then, reach out to them and agree on a collaborative proposal that benefits both parties. A bundled product or service package is one example.
5. Leverage the power of technology
Technology is an essential tool for scaling your business because it allows you to automate repetitive processes, reduce overall costs, and boost efficiency across the board. What’s not to love?
For example, if you’re trying to manage customer relations and automate marketing campaigns, then customer relationship management (CRM) software can make that process much easier. Meanwhile, project management software can foster collaboration and synchronize workflows. Even if there’s a learning curve to mastering some of the new tech, it’s well worth the time investment in the long run.
Although it’s not always easy, scaling your business is essential if you want to produce continued growth and success. By focusing on customer retention, outsourcing non-core functions, expanding your offerings, collaborating with others, and leveraging tech, you can move toward successful scaling.