Anyone can start a business, but few succeed in scaling and creating a long-term business model with growth potential. Achieving profitable YOY growth takes strategic planning and the ability to create products that evolve with current trends and technology.
Scaling is no easy feat because 20% of new businesses fail in the first two years of being open, 45% during the first five years and 65% during the first 10 years, according to data from the BLS. Only 25% of new businesses make it to the 15-year mark. Here are a few tips on how to make profitable growth easier for your business.
Expanding products or services
Many businesses start with 5-10 products and services in the beginning stages to test their product in the market and better understand consumer behavior. Before creating new products to introduce to your target market, you must have a strong understanding of consumer data and behavior. Take the time to survey your customers by developing a customer satisfaction or consumer product survey through software like Qualtrics or Infegy.
Although it’s in your best interest to target existing customers because they are the most loyal and help your business through challenging economic times, you’ll eventually have to find new markets to target. When you work through expanding distribution channels, be sure to fall back on the classic “4 Ps” of marketing — product, promotion, price and placement.
Find a funding partner
Without the right initial and ongoing funding, it’s going to be tough to keep your business afloat. The right partner will help secure funding for your business, even if that strategy changes over time. For example, you may have started your business bootstrapping and then turned to a combination of crowdfunding, bank loans, and venture capital as your business evolves.
Keep in mind that growing a business takes more funding and capital at each stage. Although your business seems to be making more revenue, you’ll need to pinpoint where you’ll need to allocate larger funds. For example, if digital marketing is showing positive signs for your business, you’ll want to invest in more digital lead-generation efforts.
If you’re looking for help with financing your business through every stage, consider the team at Commercial Funding Partners. With over $500 million funded for clients in agriculture, construction, healthcare and more, CFP is trusted by hundreds of high-profile clients. Click here or call 801-545-4000 to learn how you can get approved for funding in as little as one day.