Many people are fine with their small businesses staying small and generating a healthy income for them personally year after year.
Other people want to make a huge impact on an industry and go head to head with the largest companies around. There will be those that try to do this without covering the correct bases when trying to become the name in their industry.
The mistake that many smaller businesses make is the mistake of thinking they can outspend the larger corporations. Many businesses have crumbled as a huge corporation put them out of business either by buying them out then closing the company down or dropping prices to a point where the little company couldn’t compete.
Being clever and taking a new approach is necessary to make a name for a smaller business. The following are some ways that you can help grow your company exponentially.
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1. Customer Loyalty
Household names of companies are made through customer and client loyalty. This loyalty has branched from everything from people only buying Ford trucks to those who only smoke a certain cigarette brand. Many times entire families stick with the same brand or company that their parents did as long as they don’t have any problems personally. Getting a customer for life is great but getting an entire family tree is much better.
How to develop customer loyalty:
- Customer loyalty programs help in customer retention as they feel they are getting something for nothing. Many of these programs give away items after a certain amount of money is spent by the customer. This can lead the customer to spend more just to receive the free item.
- Customer service is extremely important to the longevity of a business as well as in growing a business. A study showed in the UK that poor customer service cost UK businesses 15.3 billion pounds in just one year.
- Put customer service agents in charge of responding to complaints on social media as well as review sites. Many people do not call to complain anymore but would rather their problem be acknowledged online.
- Loyalty price drops can be used to keep a client on board or to sign them on a long term deal. The fact is that you know what your margins are and where they can be bent while still turning a strong profit. Keeping a client for life is worth dropping a price here or there.
2. Optimized Systems
Scalable systems are a staple of any company looking to expand in a huge way. Making sure that all of the systems can handle this type of growth is something that can be estimated accurately. Each employee should be accountable for a certain amount of profit or portion of productivity. Scalable systems are those that can expand with new hires as well as scaling without hiring too many people. Optimizing systems should automate as many things as possible as this increases productivity and thus profitability.
Asking staff to examine systems and try to improve them on a consistent basis is important. Remember to implement these changes one at a time so it is clear which variable is impacting production. The fact that a process is optimized now does not mean a piece of technology or software won’t be able to improve this in the future so stay aware of these types of things.
3. Employee Retention
Many people who don’t own or run a business do not realize how important employee retention is. The time that is takes to train a new employee can be months and that doesn’t guarantee the person will stay with the company or become a contributing staff member. Another thing to take into account is how the leaving of multiple employees might have on morale.
Perks of a job can be a great way to entice younger as well as old staff to stay. If you cannot compete with salaries of other companies make sure that your employee culture as well as the way you treat your employees is above average. Creating an environment of accountability and comradery can take time but it will allow the staff to run at a high level that employees won’t want to miss out on.
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4. Incredible Marketing and Branding
Many times large companies might still contract out their marketing efforts. Doing research on what to look for in an SEO or marketing company is extremely important as there are different quality companies around. Finding a company with results that are data driven rather than qualitative is the first step of vetting this company.
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