Growth is very important for the survival and success of any tow truck business. Stats have shown that approximately 20 percent of all new businesses fail within the first two years of being opened. 45 percent of these businesses close during the first five years while 65 percent close during the first 10 years. Those numbers are also very consistent across different industries. These stats highlight the importance of proper planning so as to achieve from the first day. A concrete growth strategy involves more than just a marketing strategy. Let’s have a better understanding of key concepts so that we can understand what growth involves.
Business Growth Strategy
Growth strategy allows all companies to expand their businesses. Growth can be achieved in a number of ways such as adding new locations, investing in customer acquisition, expanding a product line among others. The industry a business is involved in will determine how fast it can achieve this growth. When strategizing, you will need to consider all available options and build a solid business plan. Depending on the type and kind of company you are building, your growth strategy might include aspects such as;
– Adding new locations
– Investing in customer acquisition
– Franchising opportunities
– Expanding on product lines
– Selling products across multiple platforms
The industry and market you target will influence the decisions you take. However, it is almost universally true that new customer acquisition plays a key role in ensuring you achieve the success and growth you need.
To grow a company successfully, here are some key issues you need to put into place;
You need to choose your targeted area of growth. Your business growth plan should be well-tailored on the specific areas you want this growth to be based on. You can choose to target growth in employee headcount, expansion and addition of new locations, expansion to new regions, locations, cities, and countries, the addition of new products and services, and expanding purchase locations. It is possible that your growth plan will encompass more than just one initiative as outlined above. This makes a lot of sense as you will be faced with different opportunities and different growth strategies will be applicable.
Conduct Market research
You will need to conduct a lot of market research to have a good understanding of your industry. You must justify why you want this growth to happen. Conducting research on the state of your industry is one of the best ways to determine if your desired growth is both necessary and feasible. Some good examples of this research could include running surveys and looking at focus groups with existing and potential customers to get the key data you need. The knowledge and facts you uncover in this step will help you shape your expectations and growth goals to have a clearly defined plan.
Set growth goals
You can never grow if you don’t have clearly defined goals. Once you have determined what you are growing and why you are growing, the next key step is to determine how much you will be growing. Set goals that are based on what you want to achieve. Setting goals in relation to your expectations and the demands of the industry is very important. You also need to take the necessary steps to quantify your goals in terms of metrics and timelines. This means you must have a clearly defined course of action to take to achieve those goals.