Risks a Company Takes Trying to Grow a Business Using These Tactics
Growing a business through various tactics come with individual risks to manage. New product releases can clutter up other areas of the business that previously ran at optimum levels. The one aspect to focus on when growing is to avoid alienating the current customer base of the business. The financial risks of trying to increase the over customer number or trying to create another stream of revenue are obvious. Putting thousands of hours of labor towards a project that doesn’t pan out can cost immense amounts. The lost revenue of production in other areas of the business will be felt as well. The following are risks that need to be managed while trying to grow a business through the tactics below.
Release of a Software/Tech Tool
The release of software or other tech tools needs to be done efficiently. Software developers can be expensive to pay over a long time and can cost a premium price when a project is stalled. The efficient DevOps tools and platforms offered by JFrog can help for safe and secure collaboration. Utilizing both onshore and offshore developers can provide quality without breaking the budget of the project. Testing of the piece of technology is imperative as a buggy software could reflect very poorly on the company that developed it.
New Physical Product
Creating a new physical product can help a company take their profits to new heights. Lack of management of logistics like that of shipping or manufacturing can lead to a subpar product being released. Tarnishing the current reputation of a company due to a failure of a product has happened to various brands. Taking the time to do the appropriate market research is not a step that should be overlooked. The research could end up saving the company a multitude of cash if the product’s target demographic is not interested.
New Services Offered
Offering new services can be a way to maximize income from current clients and create services for a larger customer demographic. The services offered should be related to current offerings for a variety of reasons. A digital marketing company that offers content marketing solutions could also offer social media management and PPC services. Branching out in an irrelevant way could worry current customers that the brand might make a switch to the different business niche. Test out new offerings with current clients on a discounted base to see if they would like to use those services monthly. The current customers can be the greatest form of data a company has in terms of testing services or new products.
Huge Client/Customer Acquisition Campaign
Driving client numbers up should not come at the expense of the current customer service. The quality of the product/service should remain the same as well. The marketing tactics that are used should align with the brand’s image and not seem too spammy. The use of outside salespeople can also lead to a brand looking at as pushy if they are no regulation or tracking of sales methods. The use of data is paramount when targeting new customers to make sure the leads that come in via marketing campaigns are quality. Unqualified leads coming in at high rates will not result in high closing rates for numerous reasons.
Cashing in professional favors to close deals can also be done without having to manage a huge campaign. Reaching out via LinkedIn for contact information or an introduction can increase the likelihood of a sale being closed. Manage clients that came from the company’s professional network carefully. Failure to satisfy this client could lose current clients especially if referred by a current client. Following up with leads that went cold can also help close a higher percentage of the sales funnel.
Expanding Number of Locations/Offices
The expansion of a company with new office locations needs to be done carefully. Keeping the same culture and pieces of training consistent will be very important. The transfer of willing employees from a current location can work wonders. Expand to somewhere with access to a large number of clients that also does not break the bank in terms of cost of living. A tech company expanding to San Francisco can help them acquire quite a few clients in the local area. The rent and cost of labor could require the company to find far more clients than in the original location just to become profitable. International expansions can be risky if the proper research is not done on the market in the destination country. Cultural differences in business dealings can also cause issues during the infancy of the l location. Hiring local talent can bridge cultural dealings while staying true to the company’s brand.
The growth of a company can be a huge risk to the overall health of the company. Take the risks into account to make sure the company does not end up in a lesser position than when the growth project began. Testing out growth methods can be wise as one tactic might fail while another yields incredible results.
About the Author
Sunit Nandi I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.
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