Posted on 18/06/2015, 14:27
You want to grow your business; but how? Many businesses first though is diversification; develop new markets or introduce new products and services without first maximising the opportunity in their core business.
What is your core business? The business(es) which represents most of your profits today! And it probably represents your best option for growth. It is represented by the market penetration strategy shown in the ANSOFF matrix above; working smarter with your existing products and services in your existing markets!
5 Incremental Changes to drive Your Core Business:
There are 5 key incremental activities that can drive significant sales and profit growth; increasing the number of leads, improving your conversion rate, growing your average order value, delivering more transactions per customer and driving gross margin. 10% improvement in each delivers a 46% increase in sales and 61% increase in profitability; not bad for 5 incremental improvements!
A former chairman of mine used to refer to this (and similar initiatives as “squeezing the lemon”
Looking at Adjacencies beyond the Core:
When you have squeezed the core, you can begin to look beyond at areas that are adjacent to your core business; new geographies, new products, new markets, new technology etc.
Beware; there are a number of pitfalls when looking beyond the core and remember that opportunities lying closest to your core business represent the least risk.
What are the pitfalls?
It’s not only Hagrid’s three headed beast of Harry Potter fame that goes by the name Fluffy. Marketing has been “accused” of being ‘fluffy’ by which it is meant that it is not measurable, not accountable and it is unclear how it impacts the business.Read More
So you have your marketing plan sorted out (if not, see our previous blog in this series for some useful pointers). Now you just need to make it happen.Read More
Those that plan … win! A good marketing plan dovetails with your business plan. Together they act as a navigation system for your business: assessing the conditions and setting the strategic direction.Read More