How to grow a business without mouth to mouth

This is a situation that I met many times. Small service businesses that are well grown to the only point by mouth to mouth and recommendations but then stuck at the level. Their challenge is how to grow a business outside this level in another way. In this article we cover several options.

Fast view on the standard new business development model (matrix ANSOFFS) shows that the two lowest risk options are penetrating new markets with existing services or providing new services to existing markets. The key to the two options is appropriate market research and segmented markets to identify smaller market segments with existing needs and levels of competition that makes sense.

It is important to take step back and see the current market as a whole. Which part (segment) market does business that currently attacks, which is avoided, and why and which has the potential to attack.

Starting with the market segment currently attacked there is a realistic potential growth available in the segment. If so, what challenges stop business from taking more businesses? Is this only a capacity problem, whether this level of competition or is the lack of certain products or services.

With this information where decisions can be made. If the problem is the capacity then maybe higher price services must be sent to a smaller market section. If it is a level of competition then what the business can do better and if it is a lack of service what is the implication to provide the service. It links to the new ANSOFF service approach.

Taking the second possibility identified by ANSOFF, it is possible to see other segments of the market that is currently not served. Evaluate if the reason for avoiding certain segments is truly valid. What is the most interesting segment to attack and examine how to attack these segments is the main process.

With a market segment identified and researching it is possible to build a plan to attack the market and grow a business. Success is not possible to achieve overnight so it is important to plan steps on the road and have a base to refer back when things are inevitable sneak out lanes.

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