First, we need to understand the external factors – economy and industry. The questions that we need to ask ourselves are:
- What’s the size of the market?
- What’s its growth rate?
- Which stage of the life-cycle is it in?
- Performance for the last 2 years (it would be very difficult for a start-up to take a leap unless we have ample amount of “qualified” pipeline to generate this revenue). I suggest we do a comprehensive analysis and do a Specific, Measurable, Achievable, Realistic and Time-constrained (S.M.A.R.T.) projection to avoid disappointment and hence the cost of the effort (which can be huge).
Growth Strategy
- Increase distribution channels
- Diversify product line
- Increase product and services
- Acquire competitors (this needs cost-benefit analysis and due diligence of M&A targets)
Increase Sales Revenue
- Increase price. This has to be done with caution and need smart approach to pass it on the customer. We need to anticipate the competitors’ response and check the substitutes available in the market. Otherwise, the customers/prospects will run away from you! 😉
- Increase per unit sale
- Increase volume (get more buyers, increase distribution channels, hire sales force, …)
- Create a seasonal sale, if applicable
- Invest in major marketing (one that has proven to be fruitful). Digital marketing is most cost-effective and efficient for larger target audience. We can hire an advertising agency for this with KRA like number of leads and conversion rate for the pay-off.
There might require certain changes to the pricing strategy as well as compared to your competitors’ price
This post originally appeared in one of my blogs in public CXO forums:
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