Top Tips for recognising business growth opportunities.
Categorise and separate your consumers.
In order to understand your level of demand, you need to identify common characteristics in consumer segments. These characteristics could be defined as “hard” variables like gender, place of residence, age, educational level, occupation and level of income or more along the lines of “soft” variables such as lifestyle, attitude, values and purchasing motivations.
The market development approach.
This method of growth involves selling your existing products to new markets. In this case, the plan of attack includes using and repurposing existing products, therefore reducing or removing any associated product development costs, hence helping to mitigate risk.
Focus on diversifying.
Whilst seen as one of the more risky strategies in terms of growth, diversifying your products and/or services to appeal to new, untouched markets could stimulate net growth. The primary concern here is that you would be entering a new market with relatively little experience and a lack of knowledge regarding the users/consumers. However a useful advantage could be that no one else has catered toward this market before, allowing you to break new ground and get ahead of the competition.
Make decisions based on data.
With any business decision, the last thing you would want to do is decide on anything with a lack of the correct and up-to-date information. You need to establish a rock solid set of data about the market, your consumers and your own capabilities in order to drastically boost your chances of success, as well as ensure your decision is well-informed and the right thing to do.
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