Four (Not So Simple) Ways to Grow Your Business
Questions that may be top-of-mind include: Are you planning to expand your business? Do you know where to start in your strategy planning? Are you weighing between investments in sales and marketing? Are you weighing between serving a current customer more fully or expanding to new accounts?
Here are your choices, in a nutshell, along with what these choices might entail:
1. Sell more of what you sell today to your current customers. Meaning invest in more marketing and sales resources to improve your win rate. (This is the least risky option.)
2. Sell new products or services to your current customers. This might require some development. It might require marketing and sales investment to broaden your consideration in new categories. And you may have to leverage your brand and relationships to gain a larger share of wallet.
3. Sell more of what you sell today to new customers. Typically requires investment in marketing and sales to expand your consideration, as well as branding to raise awareness while at the same time focusing on lead generation and cultivation.
4. Sell new products or services to new customers. May mean transforming your business with investments in all major functional areas. (This is the most risky option.)
These options are illustrated in the legendary Ansoff Matrix (pictured), first published in the Harvard Business Review in 1957 and relevant today. I have found the Ansoff Matrix useful as a discussion-facilitation tool. Have your team brainstorm ideas onto sticky notes. Then draw the matrix and ask them organize the ideas into quadrants.
It even works well for career planning, as you consider applying current and new skills in current and new environments.
Don’t let a simple 2×2 matrix fool you. Growing your business over a sustained period isn’t easy. All of the alternatives will have advantages and risks and 2013 might just be the year for bold action. Happy strategy planning!