News From Terre Haute, Indiana

Breaking News


July 28, 2013

Business Cents: Develop growth strategies for your small business

TERRE HAUTE — Taking a small business and growing it is never an easy task. When a small business is started, it’s wise for the business owners to develop a business plan so that they understand how to launch the company and what type of capital they will need to invest in a variety of company aspects. Research states that one-tenth of 1 percent of businesses reach $250 million in revenue; most businesses that start small stay small.

Developing and growing a business is truly up to the owner of the company and their goals and ambitions. The definition of success varies across the board for small business owners. One business owner may define success as having a few employees who are paid well and having a substantial market share in their local market.

Another business owner may define success by national or regional market share or by having 200 employees. Listed below are a series of steps to get you started in developing your own business growth strategy.

1. Market penetration: This is typically viewed as least risky since market penetration simply involves selling more of your product or service. For example, consider toilet paper. When you go to purchase toilet paper, look and see how many four-roll packs are still on the shelf. Although there are a few still available, the vast majority of suppliers like Charmin and Angel Soft offer 12-roll packs that are vastly more popular for the consumer.

2. Market development: The next point to consider is how to sell more of your product or service in the adjacent market. Is your company one that sustains a franchising model? If you look across the Wabash Valley, think about how many of our businesses are actually franchises. Chick-fil-A, McDonald’s, Snap-On Tools, Aaron’s Rental, Servpro, Liberty Tax Service and Anytime Fitness are just a few of the franchises in our area, and all are basically locally owned and operated.

3. Alternative channels: E-commerce comes into play here. How many different ways can your customers reach you and purchase your products or services?

4. Product development: Your existing customers are a great target for this strategy, as selling a new product or service to them is far less risky than having to embark on selling a new product into a new market at the same time.

5. New products for new customers: Often this is dictated by the market demand and that new products must be created for new customers. Polaris started out with just snow mobiles but realized it need all-terrain four-wheelers also. Of course, we can’t forget all the smart phones like Blackberries and iPhones.

Developing your company’s growth strategy always begins with determining your own goals, especially since your personal goals need to align or compliment your company goals. And don’t forget to truly reflect on what you consider success for you and your business.

Heather (Penney) Strohm is the regional director for Indiana State University’s Indiana Small Business Development Center.


Text Only | Photo Reprints
Latest News Poll
AP Video
Joy Fills Streets of Cleveland As LeBron Returns Bull Run Comes to Middle America Raw: Divers, Snorkelers at Undersea 'Concert' Robot Writes Jewish Torah Scroll Raw: Violence Mars Argentina's WC Celebration Israel Deploys Ground Troops to Gaza Strip Lightning Kills Two in National Park in Colorado Space Station Shipment Launched From Virginia Germany Wins the World Cup 1-0 One Dead, 19 Injured in Greyhound Bus Crash Stolen Car Collides With Greyhound Bus Argentina Fans Sad but Proud in Loss Giant Whale Vacuumed in New York City Texas Shooting Suspect Collapses in Court Diaz and Segel Strip Off for 'Sex Tape' Tiny Texas Border Town Weathers Migrant Influx LeBron: Move Back to Cleveland 'Exciting' Wisconsin Cop Ready to Roll...On Skateboard Raw: Stunning Timelapse of WC Final Host City Proposed Bill to Regulate NY Costumed Characters
NDN Video
A Dog and His Chicks LeBron and Blatt 'will work together beautifully' Boeing Squeezes More Seats Into the 737 Fist Pump Time! JWoww is a New Mom Japan zoo makes wild fashion statement with lion-ripped jeans Germany Wins the World Cup 1-0 Man In Trouble For Selfie During 'Running Of The Bulls' RAW VIDEO: Stampede injures ten at Georgia World Congress Center Original 'Planet of the Apes' Actress Looks Back at the Classic Film Cellphone Video Shows Assault Tracy Morgan released from rehab month after crash Cleveland welcomes home LeBron Houston Killer Collapses in Court When Read Capital Murder Charges for Allegedly Killing Family of Six Worst Valet Ever Wrecks $500K Lamborghini Glee Star Becca Tobin's Boyfriend Matt Bendik Found Dead in Hotel Aerial fish restocking in Utah ScarJo Channels Marilyn Monroe Obama Responds to Hecklers on Immigration Tiny Hamsters Who Ate Burritos are Back for a Tiny Hedgehog's Party Watch Kelly Ripa Get Soaked!

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
  • -


    March 12, 2010