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The 11 Top Tips for Growing Your Business in 2021

davidarmstrong_img1
Published by:
David Armstrong
Published on:
June 07, 2021
Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521
Top 8 Tips in Growing Your Business this 2021

Is growing a business really that much different than before the COVID pandemic hit? The answer may surprise you.

2020 was a perfect example of how the business environment can change overnight. The COVID-19 pandemic hit two-thirds of businesses across all industries, affecting either revenue or cash flow directly.  

Companies were forced to adjust business practices, lay off employees, or even take out new loans. Some businesses ultimately closed down, many continue to struggle, and there are a few that thrived.

What went on with those companies that actually beat the odds? 

They demonstrated adaptability and flexibility in the face of new market conditions. 

Some business owners looked for new opportunities. Others shifted towards meeting new customer demands. With a few notable exceptions, businesses that survived or thrived have had to make significant adjustments to weather the storm.

To make a business grow in the face of adversity, the ability to adapt to change and utilise the correct strategies is critical. And in that light, this article will cover a series of success tips for small business owners.

If you’ve been running a business for decades, implementing the following suggestions should come easier. So, let’s go over some business tips and ideas that can help you grow in 2021.

The 11 Tips

Tip #1. Focus on a Niche (Instead of Trying to Target Everyone)

Everyone has particular needs, especially during times of hardship. Therefore, niche markets and emerging trends make the most sense when trying to grow a company.

Unfortunately, many businesses fail due to them competing in the wrong niche. Another reason is that business owners may offer an overly broad range of products in an attempt to target everyone.

Seasonality is another oft-overlooked aspect that leads to failure. To grow your company, you need to have high enough demand for what you offer. You can use tools like Google Trends to gauge the demand and popularity of products and services in a given sector. 

It’s also worth noting that general audiences don’t allow for enhanced product development or placement. Doing so prevents you from focusing on the best opportunities. 

So, it’s not only a matter of entering the right niche but also marketing to an ideal customer base for your products or services.

Tip #2. Figure Out What’s Unique About Your Business

Continuing on the previous point, it’s essential to have clarity. You can’t grow a business that doesn’t have an advantage over competitors.

How do you position or communicate your offer? Why is it better than everything else on the market?

It’s critical to demonstrate a clear advantage of your business to your market. And you can identify what it is by figuring out why a customer might prefer your company instead of another.

For example, market research about the unique advantages of your competitors can help you avoid promising something too similar.

But remember, clarity is the key here. If you can’t convey your unique advantage convincingly, you risk leaving everyone confused, and confused prospects rarely become buyers.

Tip #3. Relationships Matter (So Focus on Building Them)

One of your most important tasks should be to nurture customer relationships further.

Think about it like this: if you offer a great product and know how to value your customers, they can become customers for life.

The same applies to service-based businesses – offer a service that people need, build relationships, and they’ll keep coming back. It’ll be helpful if you can add more value by expanding or upgrading your service package.

Besides, seeing as consumer trust is at an all-time low in 2021, emphasising the strength of those long-term relationships may give you an advantage over competitors.

Tip #4. Track Transaction Numbers (And Take Action on What You See)

Have you ever looked into the lifetime profit of a client compared to a single transaction? 

If you sell $1,000 products, the lifetime value of a long-term customer would be in the tens of thousands, more if you include the referral value.

Tracking transaction numbers is one of the best business tips for beginners. Dig deeper into that data and you can learn a lot about your company and its relationships with customers.

At the same time, the data can tell you what you can do to increase transaction frequency. Maybe you don’t have anything too substantial to offer right now, but it’s a missed opportunity to not capitalise on customers who are likely to do business with you again.

After all, statistics show that 50% of satisfied customers will buy from you again. And this goes up to about 75% after the second purchase.

You can also work on making it easier for your customers to go through with a purchase.

Tip #5. Remember, Profit is More Important Than Revenue

A business that generates $900,000 in yearly revenue may still be less profitable than one that brings in half as much.

So, you may want to shift your focus from revenue to profit and work on making your business more profitable. It’ll certainly help to pay closer attention to your margins. 

The bigger your profit, the more you can invest in marketing and other growth drivers, your employees, and so on.

Keep in mind that a sustainable business relies on profit, not revenue.

Tip #6. Create Training Systems for Staff and Clients

There are a couple of things to consider about your staff. At the crux of it is that your people need proper training if they’re to remain productive and contribute to your company’s growth and profitability.

Essential training for your employees may include:

  • Marketing skills
  • Product knowledge
  • Phone skills
  • Customer service skills
  • Client retention
  • Sales
  • Proper understanding of systems and procedures

Your business’s productivity will depend on employees and new ideas. It will rely on your people’s involvement and willingness to embrace change and implement improvements.

In this regard, regular staff meetings or strategy sessions may help. And keep in mind that it’s better to have trained people that might leave for greener pastures than to have below-average employees who could ruin customer relationships for your company.

For service-based businesses, don’t discount the potential of providing new levels of training for clients, too. That means constantly finding ways to improve your service package and educating clients to help them stay on top of their game.

Tip #7. Develop a Better Understanding of Your Clients

Lots of studies have shown that it costs more to attract new customers than to retain existing ones. Furthermore, it’s a lot cheaper to reward existing clients and get more transactions out of them than to focus all your efforts on new prospects. 

But before you can turn them into loyal clients, you must have a deeper understanding of them.

Tracking client information and creating accurate profiles help, which you can accomplish with a CRM system, even an entry-level one.

Turn your attention to any lifestyle factors that may affect your customer’s needs or buying decisions.

Offering more services and getting additional feedback wouldn’t hurt, either. Knowing what helps you secure customer loyalty makes it easier to create future marketing campaigns. 

Always ask yourself what more you can do for your customers. Find out if they’re satisfied with your company’s customer service, accessibility, and communications. More than your products, you also have to focus on how customers see your company as a whole.

Tip #8. Protect Your Business Assets

One of the most crucial tips for small business owners during COVID would be to protect their assets. In fact, this applies in both times of adversity and prosperity. And it’s something you should do as soon as you start a business

Any number of things can affect your assets. You can lose money, customers, and, worst, your company.

Unfortunately, too many entrepreneurs refuse to spend money on asset protection in the hope that nothing will go wrong. But as the pandemic showed everyone, disaster can strike at any moment. 

Business owners like you can protect against all of the above with various types of business insurance. Depending on your sector and circumstances, you may not need a lot of coverage or capital investment to protect your assets.

Tip #9. Market expansion – Find new markets for your existing product

It’s time to take a good look at the solution your product or service provides. Are there other markets you can help? You might find yourself targeting new geographical regions or it could mean targeting customers in a completely different industry or demographic.

If the answer is yes, the first step is to define your new target market. How are they different from your existing customers? Will they be using your product or service in the same ways as your existing clients or differently? Consider how you might need to adjust your marketing and promotion to this new market segment, and also any ramifications for your existing clients.

In other cases, market expansion might mean creating a new use for your product. This might involve adjusting or adding features and benefits, or alternatively, just focusing on different attributes in your marketing.

Tip #10. Lean on your accountant for financial confidentiality and support

It’s time to take a good look at the solution your product or service provides. Are there other markets you can help with? You might find yourself targeting new geographical regions or it could mean targeting customers in a completely different industry or demographic.

If the answer is yes, the first step is to define your new target market. How are they different from your existing customers? Will they be using your product or service in the same ways as your existing clients or differently? Consider how you might need to adjust your marketing and promotion to this new market segment, and also any ramifications for your existing clients.

In other cases, market expansion might mean creating a new use for your product. This might involve adjusting or adding features and benefits, or alternatively, just focusing on different attributes in your marketing.

Gone are the days of reactive relationships! If you’re in one with your current accountant, we urge you to consider other options. We believe in proactive action and education, so you can get where you want to be. Whether it’s advice to help you improve cash flow, raise capital, or operate more efficiently – there’s no better outcome than seeing a business grow in ways they never thought possible.

Grow your business with these services:

Find an accountant who takes a holistic view. The right business accountant doesn’t just call when tax time rolls around. The right one will get to know you, and your business. Because believe it or not, they are inextricably linked. They will get to know your personal and professional goals because reaching them is often dependent upon each other. The right accountant will take your entire financial journey into perspective and work out a plan for you to reach your lifestyle potential.

Tip #11. Write a business plan

Many business owners wonder how to write the perfect business plan, but the truth is each business will have its own unique plan.

Writing your business plan doesn’t need to be an onerous task added to your to-do list.

A one-page template such as this one can be a helpful tool to provide some direction.

Make sure that you focus on areas of the plan that relate specifically to your business. Templates will differ, but the basic approach is the same for all business plans.

There’s No Shortage of Improvements You Can Make

It should be clear by now that you can do a lot to change the course of your business for the better. If you desire growth and profitability, you have to focus on your business’s most crucial aspects.

Remember, customers are ultimately your company’s lifeline. That’s why you have to find the right ones and give them what they need. Developing customer relationships and training your staff for excellent service will go a long way towards meeting your goals.

And don’t forget that no matter how well you plan, the unexpected can always come to pass. Asset protection and adaptability are two of the most important tools at your disposal.

Are you ready to put 2020 behind you and grow your business in earnest? Get started by calling a Modoras professional at  1300 888 803 today.

There are different support grants from the government to your business that might be eligible for. If you need help with your grant application, we can assist. We can help you confirm your eligibility for assistance, prepare your funding application, or simply give you advice. We’ll take care of you.

Need help on processing your covid-19 support grants? The Modoras team is here.

IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (SYD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (SYD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (SYD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (SYD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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