The Number One Thing You Need to Know to Survive the 5 Year Mark with Your Small Business

If you’re a small business owner, you were no doubt told the famous statistic that only a mere 50% of businesses survive the first 5 years. Although it’s a scary thought, following your passion and risking the chance of failure is what every successful business has faced as a startup. But there must have been some secret, something those companies in business for 25 years+ knew or did that increased their chance of success, right? Of course, it’s not that simple, however, there are techniques and approaches that prove to be useful when growing a small business.

There is one thing you do need to know to survive the 5-year mark with your small business and that’s having a growth strategy.

What’s a Growth Strategy?

According to Hubspot, “a concrete growth strategy is more than a marketing strategy, it's a crucial cog in your business machine. Without one, you're at the mercy of a fickle consumer base and market fluctuations.” Your growth strategy can be a step-by-step plan on how you expect your business to grow throughout the next handful or more years with plans on how to interact and react depending on possible scenarios.

How to Develop Your Own Growth Strategy:

1. Determine Your Unique Selling Point (USP).

   If you haven’t truly figured out what sets you apart from the competition, there’s far less of a chance you’ll surpass them. What’s your brand’s value proposition? Why should your customers purchase your product or service over another? These are important questions you must solidify before diving deeper into creating your growth strategy. Once understood, this should operate as a baseline for your future work. Your organization should always work with “what makes your product great” in mind.

2. Analyze Your Target Market.

   It’s not enough to pinpoint an age group you want to target and then call it a day. Who is your audience and how can you find and communicate with them? Is it only your target market that’s using your product? Perhaps there’s an entirely different market that you weren’t aware of that could help you grow. If it helps, create fictional customer personas or survey your target markets to learn more about their behaviors.

   It is important to go a step further than simply figuring out who makes up your target market. Understanding, why a specific audience is buying your product goes hand in hand with your organization’s understanding of its unique selling point. Additionally, it can be informative to understand why the groups that fall outside your target market do fall outside your target market. This can help your organization understand its product and sales more completely.

3. Set Up and Invest in Your Key Performance Indicators (KPIs).

   You need to have measurable goals and outcomes in order for you to accurately ensure you meet milestones and understand the success of your business. Your KPIs are essential as they act as markers for you to track your progress - and you need to invest properly in each one to reach them (they’re not wishes that come true if you think hard enough - it takes work). If you are not able to properly measure your progress and get your bearings, you will not be able to chart a path forward. Recognizing what works and what does not is essential to learning every step of the way and maximizing the efficiency and effectiveness of your strategies.

NMBL Strategies seeks to empower small businesses, nonprofits, and public-private enterprises through trusted consulting partnerships. through trusted consulting partnerships.  Our consultants have real-world experience and significant tenure within their fields and are able to deliver the best and most strategic return on investment. Learn how we can help grow your organization today.