Achieving Rapid Small Business Growth in a Slow-Growing Economy: A Trio of Strategies
Small business growth has never been a greater challenge. Post-recession, the US is still a full percentage point below the long-term average growth rate (3.4%).
A slow-growing economy may be here to stay
Just a one percent drag on the long-term growth average results in a significant reduction in consumer spending, normal lending practices, and hiring.
With millions still unemployed, home prices stagnant, and the government likely without significant stimulus tricks, it’s time to look at areas where homeowners can control.
Growing your business can be made much easier by simply riding the right wave.
1. The gray wave
No demographic wave is bigger than the baby boomers born between 1946 and 1964. Consider the millions of boomers recently retired or cut from their normal salary each year. In addition, a growing number of aspiring retirees are looking to supplement limited retirement funds or expensive health insurance.
There are dozens of alluring niches for the growing (and gray-haired) needs of boomers.
Some of the best advice includes finding a niche in retirement, home and health services. Consumer studies confirm the non-traditional ways that tomorrow’s retirees are expected to follow.
Think extra padding for inline skate gear, not rocking chairs!
2. How smart are you?
About smartphones that is. Did you know that 35% of American adults now have a smartphone? A staggering 25% of them use that as their only Internet access for browsing and shopping.
Start integrating smartphone tools to make it easier for your mobile-centric customers.
The easiest place to start includes QR codes in your sales collateral and loyalty programs that your customers scan with their phone.
An immediate way to beat your competition is to have a solid website that is compatible with smartphones.
Short videos on important announcements and new products and services will propel your small business growth ahead of your competitors. Easily subscribing to your newsletter or pending announcements for smartphone users is another way to capture this fast-growing customer segment.
With smartphone technology platforms getting faster and more integrated with the web, look for an explosion of new apps available to engage your customers.
Ignore this explosive area at your own risk. Europe already has a much higher rate of smartphone use. Look for even more US smartphone users to help your small business grow.
3. How much do you care?
One of the most neglected areas by small businesses is the area of customer service. Imagine the small business growth revolution that would occur if more owners took this area much more seriously!
Cost cutting and shoddy technology build barriers with your customers and drag down small business growth. With surprisingly affordable and innovative customer relationship management (CRM) tools, this is an area where significant gains can be made.
Why is CRM key to small business growth? Trying to compete on price and quality is a real struggle in most markets with little financial returns. Most small businesses understand the commitment to making customer satisfaction a competitive advantage. Yet few invest in long-term customer relationships.
What is the secret to the best CRM approach?
An effectively designed CRM systems methodology communicates your brand consistently and personally. Think about mass customization in a personalized way. Targeting attractive market niches by leveraging their strengths makes a business plan come to life. Helping each customer feel heard and understood creates fans of your business.
What is the best advice for small businesses? Start small with an existing customer segment and build your CRM approach to measuring small business growth metrics.
Then apply your approach to new markets or even new products and services that your customers want.
Choosing one or more of these three strategies helps fuel small business growth.