Grow Your Business with Slim Profit Margin: 9 Secrets Revealed
Last Updated on December 22, 2022 by Selina Parker
As a business owner, you are always looking for ways to grow and expand your business. Small business owners with a slim profit margin feel it nearly impossible to increase revenue without taking on additional risk, spending more money, or adding more hours at the office.
If you want to have a successful business, there are a variety of strategies that can help you expand and grow your business! But, not all of them will work for every company. We put together this list of 9 tips to help you grow and expand with a slim profit margin.
1. Increase your customer base by making your product or service more visible
2. Offer a money-back guarantee
3. Give discounts or offer a special promotion to repeat customers
4. Give free samples of your product or service to get new customers in the door
5. Create a referral program
6. Partner up with other businesses that can provide complementary services or products
7. Research your competition
8. Invest in social media marketing campaigns
9. Get funding
We hope these tips will be helpful as you continue to run your own successful business! These are the same strategies we use at our agency for clients who want to see their businesses thrive.Â
9 Tips on How to Grow Your Business
1. Increase your customer base by making your product or service more visible
Business grows with the proper growth strategy and marketing efforts. These are the key to targeting potential customers getting into your business, and accelerating growth.
There are many ways you can market your product or service. Still, the most effective marketing strategies involve finding a way to stand out from other businesses in your industry without breaking the bank.
Types of Marketing Strategies for Rapid Business Growth
Cause Marketing
The company links its product or service to a cause the target customer cares about, also known as cause-related marketing. The goal is not only to get more customers but also to help better your community at the same time.Â
Relationship Marketing
This marketing strategy focuses primarily on retaining existing customers by providing excellent customer service. Relationship marketing is also a great way to get referrals from past customers.
Scarcity Marketing
It creates a perception to customers that the product or service is in demand and that they better take advantage of it quickly before it runs out. This marketing strategy works best when your business only has a limited amount of what people want.
Undercover Marketing
Undercover marketing is the process of marketing to consumers without their knowledge, which is also known as stealth marketing.
Marketers can’t stop the internet, but they’re getting better at hiding their ads. Stealth marketing is a form of advertising that involves making products or services seem like something other than what they are – in this case, good old-fashioned snake-oil salesmanship!
We do not recommend or condone this type of marketing due to the ethical implications.
2. Offer a money-back guarantee
It will be an excellent option for customers who are unsure about their purchase and will help reassure them that they will not lose money if the product or service is not what they expected.
It will give them the confidence to purchase your product or service and be an excellent opportunity for you to provide a great customer experience.
3. Give discounts or offer a special promotion to repeat customers
A customer loyalty program will increase your business’ rapid growth and will most likely purchase if it’s on sale or has a discount. A recent study by RetailMeNot shows that two-thirds of customers are more likely to make a purchase they hadn’t planned on because of coupons and deals.
Furthermore, 80% said they are more inclined to make a first-time purchase if they discover an offer or discount from a company with which they are unfamiliar.
It will make current customers feel valued and that they are getting more for their money and will likely recommend the benefits to their friends.
4. Give free samples of your product or service to get new customers in the door
People love receiving things for free, and this is why many businesses give away some samples so that people will be encouraged to buy their full-sized versions later on.
This strategy works best when you have a business that produces high-end products or services that are expensive, unique, time-consuming, and beneficial.
5. Create a referral program
Reward customers when they refer their friends and family members. A great way to do this is by offering a referral program where you will give them a certain amount of money or discounts on their next purchase.
It encourages customers to bring more people into your business and helps gain new loyal customers who are likely to remain with you for future purchases.
6. Partner up with other businesses that can provide complementary services or products
One way to build brand identity is by partnering with other local businesses that can provide complementary services or products to accelerate growth.
It will help you grow by having more people in the area know about your product and service, which means they are likely to come back again for future purchases.
For example, if you own a coffee shop, partnering with an ice cream shop will create a more enjoyable experience for customers and help get your name out there.
7. Research your competition
The best way to grow your business is to know how it works and learn from your direct competitors.
By researching some of the top competitors in your industry, you will see what they are doing right and wrong that can help or hurt their businesses. You can then use this information to improve your business as well.
For example, if you own a restaurant and learn that your competition provides online menus and discounts for take-out orders, you may want to implement them in the future.
8. Invest in social media marketing campaigns
Almost everyone has a social media account today; that’s why investing in social media marketing campaigns is one of the best ways to grow your business.
You can do this by advertising on Facebook and Instagram and has posted about upcoming sales or promotions so customers know when they should buy from you again.
You will also want to have an aesthetically pleasing website to make your business appear professional and official.
9. Get funding
One way to expand your business is to raise capital regardless of your business model because this can help you grow by reinvesting in your industry.
There are many different ways to receive funding. Still, the most popular options include getting a loan from family or friends, putting equity into the company rather than receiving cash payment for services, and crowdfunding campaigns on websites.
If you want to raise capital without equity at stake, The Fully Funded Method is the best option. We will discuss many strategies in the TFFM manual that will be very useful for you to grow your business.
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ABOUT THE AUTHOR
“What began as a life and career coaching services company to aide entrepreneurs through the early-stage challenges and tough transformations of starting a social venture has evolved over the years to include mergers and acquisitions, organizational consulting, and business growth advisory services to mission-driven organizations that strive to improve access to basic physiological, safety, and security needs while increasing their profit margin. Clients include founders and organizations with the purpose of addressing deficiencies in delivering quality healthcare and mental health services, sufficient employment, access to clean water and air, safe shelter, adequate food, and more.”