How to grow your small business: top strategies, tips & ideas

Summary 

• Small businesses go through five growth stages, from initial start-up to become a mature entity.

• Expanding your small business requires strategies to boost marketing and lead generation while focusing on client retention.

• According to the FSB, there were 5.6 million small businesses in the UK at the start of 2023.

What are the five stages of small business growth? 

Growing a small business involves understanding and navigating through five key growth stages. Consider each of the growth stages below and the key actions to employ in that stage:

Existence

In this initial stage, the primary goal is to get the business off the ground. Your focus is on finding customers and delivering your product or service. 

Here are the key actions for this stage:

• Identify your target market.

• Set up your operations.

• Build your brand.

• Market your business.

Survival

At this stage, your business has customers and is making sales. The focus is on ensuring the business can sustain itself. 

Key actions include:

• Manage finances carefully.

• Optimise operations.

• Retain customers.

• Plan for the future.

Success

Here, your business is stable and profitable. You can either maintain this stability or look for opportunities for expanding your small business. 

Your key actions include:

• Choose your path (i.e., maintain the status quo or pursue growth).

• Strengthen your foundations with systems and staff.

• Expand your offerings with new services or products.

• Build a strong team.

Take-off (growth)

Your business is ready to expand significantly. This stage focuses on rapid growth and scaling up operations. 

Key actions for this stage include:

• Secure funding.

• Expand your market.

• Scale operations.

• Manage risks.

Resource maturity

Your business is now a mature, stable entity with a solid customer base and established processes. 

Critical actions for this stage include:

• Optimise efficiency.

• Innovate to keep your business competitive.

• Plan for succession.

• Consider diversification.

How to grow your small business?

Knowing how to grow a small business involves implementing multiple strategies concurrently. Here's how you can make it happen:

Conduct in-depth research

Research helps you to understand your competitors, market, and customer needs. Here are some ways to do this:

• Analyse competitors: Identify what they're doing well and where they're lacking.

• Study your market: Understand market trends, demand, and potential areas for growth.

• Gather customer feedback: Use surveys, reviews, and direct feedback to understand your customers' pain points and preferences. 

Look at your numbers and make a plan

Analysing your finances and setting clear goals is crucial for sustainable growth. Here's what you should do:

• Review your financial statements: Regularly check your balance sheets, profit, loss, and cash flow statements.

• Set realistic goals: Define short-term and long-term business goals.

• Create a detailed plan: Outline the steps needed to achieve your goals, including timelines and resources required.

Invest in effective systems and software 

Good systems and software improve efficiency and help manage business operations, aiding your business's growth. Here's what to consider:

• Accounting software: Use tools like QuickBooks or Xero to manage finances.

• Customer relationship management (CRM): Implement a CRM system like Salesforce or HubSpot to manage customer interactions and data.

• Project management tools: Use software like Asana or Trello to track the progress of projects and tasks.

• Inventory management: Tools like TradeGecko or Inventory Now can help manage stock levels and orders.

Grow your social media presence

Social media is an excellent tool for reaching new customers and engaging with existing ones. Here's how you can strategically use social media to grow your small business:

• Choose the right platforms: Focus on platforms where your target audience is most active (e.g., Facebook, X, LinkedIn, Instagram, YouTube, or TikTok).

• Create engaging content: Share valuable, interesting, and relevant content to attract and retain followers.

• Engage with your audience: Respond to comments, messages, and reviews to grow a community around your brand.

Invest in a high-functioning website

A professional, user-friendly website can attract and convert visitors into customers. Here's how:

• Ensure easy navigation: Make it simple for visitors to find what they need on your website.

• Optimise it for mobile devices: Ensure your website works well on all devices.

• Include strong calls to action. Encourage visitors to act, such as signing up for a newsletter or purchasing.

• Regular updates: Keep your content relevant and fresh to attract repeat visitors.

Invest in lead generation 

Generating leads is essential for continuous business growth. Here's what you can do to boost it:

• Use online advertising: Run targeted ads on Google, Facebook, or LinkedIn to reach potential customers.

• Offer valuable content: Create eBooks, whitepapers, or webinars that require contact information to access.

• Networking: Attend industry-specific conferences and events to meet potential clients and partners.

• Partner with Unbiased: Partnering with lead generation portals like Unbiased Pro helps to deliver qualified leads to your mailbox.

Know your customers

Understanding your customers helps you to serve them better and retain their business. Here's how:

• Build customer profiles: Create detailed profiles of your ideal customers, including demographics and behaviours.

• Use CRM data: Analyse data from your CRM to understand customer buying patterns and preferences.

• Personalise communication: Tailor your marketing messages and offers to meet individual customer needs.

Grow your team

A solid and capable team is vital for expanding your small business. Here's what you can do to grow your team:

• Hire strategically: Look for candidates with the skills and attitudes that align with your business goals.

• Invest in training: Provide ongoing development and training opportunities to keep your team skilled and motivated.

• Foster a positive culture: Create a supportive work environment encouraging collaboration and innovation.

How do I balance business growth and retaining existing clients?

Balancing business growth and retaining clients is crucial for sustainable success. Rapid business growth can sometimes lead to neglected customer service, which can cause clients to leave. To find a balance, prioritise excellent customer service alongside expansion efforts. For example, invest in a robust CRM system to manage client relationships efficiently as you scale.

Other suggestions include:

• Regularly ask for (and act on) customer feedback to improve your services.

• Implement loyalty programmes to reward repeat business.

• Train your team to maintain high service standards.

Want to work with Unbiased? 

Expanding your small business involves navigating the five stages of growth and employing key strategies that boost growth. However, with business growth comes the issue of customer retention, so small business owners should put measures in place to keep their existing customers happy while attracting new leads.

To successfully expand your small business and retain clients, consider partnering with Unbiased Pro for easy access to resources and lead generation.