Five Lesser Known Business Strategies You Aren’t Probably Utilizing (but should be)
Employing the right business strategy at just the right time can make the all difference in a company’s success. Astute entrepreneurs recognize the need to evolve and change, adopting new game plans as needed.
Below are a few noteworthy techniques that have proven viable for some companies.
1. Develop Multiple Revenue Streams
While many businesses focus on cutting costs and increasing revenues to achieve increased profitability like they learned in business school, other entrepreneurs consider adding another revenue stream. This proven strategy for increasing revenues promotes the development of another logical and related profit center. Selling closely connected products to loyal customers is an excellent way to quickly boost revenues without spending a lot of additional capital to establish a totally unrelated profit center.
An example of implementing this type of strategy would be for a pool construction company to start selling necessary chemicals like chlorine to add to customer pools. By selling chemicals and supplies that every pool owner needs, this type of business continues to earn money with customers after the initial sale, providing predictable and steady income. This type of ongoing revenue source stabilizes cash flow and can significantly impact earnings.
2. Create Strategic Partnerships
A sophisticated idea that many large companies employ, but is a less likely technique to be used by smaller companies is to forge partnerships with business partners that can dramatically improve revenues. There are several ways to accomplish this type of union. One way is to merge with a complementary business to either add a new profit center or cut costs by eliminating duplicate functions.
Mergers are typically very complicated and can tear down companies if not expertly handled. To evaluate the viability of a merger, it is important to get the advice of a professional team with experience handling business mergers. Some CPA firms and attorneys specialize in mergers and acquisitions.
3. Go Global
There was a time that the idea of expanding a company’s reach internationally would be unthinkable for most small and medium-sized businesses. With the emergence of digital marketing and the growing influence of the Internet, expanding a company’s reach overseas is no longer financially impossible. While it is still complicated to market to a different culture, it is much more feasible today to start selling online and access international markets than it was in the recent past.
4. Convert New Clients with a Teaser Offer
An excellent way to get a prospective new client’s attention is to give them a free taste of your product or service. The idea of trying a product or service before buying it has been used successfully by smart companies. While this technique has been utilized mainly in the food business with samples being handed out in shopping malls, it can also be used for other types of businesses. Companies appreciate the chance to test a new company out with no associated risk.
5. Establish a Company Philosophy of Hiring People Smarter than You Are
This is not a new idea. Delivering on such a promise is understandably difficult for many professionals with baggage from corporate politics and a fear of being in a vulnerable position. So, implementing this strategy is not as easy as it sounds. It requires a group of very confident and secure people to hire intellectually superior subordinates who are the best in their field.
Elisabeth is an independent blogger who regularly contributes to http://www.epromos.com
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Mark Montoya has been working in personal branding for more than a decade for hundreds of online and offline companies, small businesses and individual service professionals. His focus has been toward improving the way jobseekers find employment on the Internet. He has synthesized his expertise by helping job seekers obtain their ideal choice of employment over the Internet on his sites MyOnlineCareerSpace.com and MyOnlineCareerCoach.com, and through his books 101 Tips Every Job Seeker Should Know and The Ultimate Online Job Search eBook.
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