Strategies: Squeeze your way to business growth
— -- If you want to grow your small business, it's time to squeeze some oranges.
No, I don't mean you have to go out and start drinking orange juice. I mean you have to squeeze more out of the things you already do and have in your business now — your products, services, customers, distribution, even employees. You've got to make from what you already have, especially in this economy.
I think it helps to think of your company's various assets as baskets of oranges. For instance, if you've been in business for some time, you've already developed a number of very valuable assets. You've spent money, time, energy and careful thought developing a number of key ingredients for your success, such as your existing:
• Products or services.• Clients or customers.• Marketing materials and methods.• Distribution channels.• Key referral sources.
Let's call that your first basket of oranges. You're already getting a certain amount of money — juice — from that basket.
Now what's the best way to make more money?
Create a second basket of oranges? Or squeeze harder on the oranges you have?
Instinctively, many entrepreneurs wanting to grow their businesses take the route of creating a second basket of oranges; they develop new products, services, or markets. It's particularly tempting to try to find a new basket of oranges in this economy. But that costs a lot.
Are you really sure there's no more juice in the basket of oranges you already have?
Let's examine a number of options for growing a small business, including:
1. New product development: You create and offer additional products or services. This means investment — research and development, finding new sources, adding production capacity, testing and perfecting.
2. New market development:You offer the same products or services, but now you look for totally new markets. This means investment — opening new locations, developing new distribution channels, creating new marketing materials or websites aimed at these new markets.
