Every entrepreneur wants to see their business grow over time, with a bigger customer base and new products or services that will generate better revenue and profits. While the path to success in business may require you to think big, it’s often achieved in small ways first – here are some business strategy ideas that any entrepreneur can use.
Sell one good product, and sell lots of it
Having a variety of products to offer your clients is an excellent goal for any entrepreneur, but in the early stages of your business you might want to focus on one product at a time. There are several reasons why this could be your best strategy:
- Your time may be limited – running your business and spending time on developing new products may not be possible at first.
- Marketing multiple products is difficult – exposing one good product to the market at a time may increase your chances of success.
- One products means less inventory – by keeping just one product in stock at first, you won’t tie up all your capital on inventory that may not sell.
Develop “accessory” products
Once you have seen that your product is selling well, you can expand your offering by creating related items or accessories that compliment your main product.
For example, a company that sells covers for tablet PCs may soon branch out into cell phone covers and other related products. One of the oldest examples of related products out-selling the original product is the refill for clutch pencils – everyone who owns a clutch pencil ends up returning to the shop to buy little boxes of lead refills.
Look after your customers
Your existing customers are your best source of revenue, and for this reason it’s very important to keep them happy.
It may not be easy to satisfy every single customer you have, and there are times when you need to cut your losses when dealing with a difficult person or someone who doesn’t pay on time – as long as 80% to 90% of your customers are satisfied, you should be on the right track.
Customers who are happy with the product or service they receive and find your prices reasonable are likely to come back for repeat business and refer you to others – a referral is one of the best types of advertising you could possibly hope for. Over time your business will gain a reputation for good service and competitive prices, giving you an advantage over the competition.