Six Ways to Grow Despite The Economy (I Lied about that)

All right everyone. Have you had it yet? Are you still waiting for the economy to get better? It's not going to get better by much. So we have to get better at a number of things.

I Googled ways to grow in a recession and you know what I found? Not much. Practically none of it was about real growth, which is basically focusing on markets in a different way and focusing on different markets. Lot of things about selling sharper, some about keeping cash flow healthier, some about collecting receivables. But not a lot that focused on getting more from customers in different ways other than selling more stuff and finding more customers. There are more ways to grow than that and more ways to do those things as well. Here's an expanded set of growth methods. You need to have something going in all of them to diversify your growth portfolio as well.

By the way, there are actually seven more ways packed into number six for a total of twelve distinct strategies to grow.




Ways to Grow In Any Economy:

1. Keep more of the growth you already got. This isn't growth you say? Try looking at the customers you lost last year. How many were because of something you did or didn't do? What would have been your results if you didn't lose them because of those reasons. Do two things. Fix the reasons, and offer current customers special privileges that qualify. Others will want to qualify by getting in the exclusive club, too. But that's really what the next one is about.

2. Get More from Existing Customers. There is a science to this, and it has to do with identifying where your have potential to get more. Aside from the power of the special privileges idea, measure your average order size and frequency for all customers that buy a minimum. Then categorize all customers based on whether they are higher or lower than average on order frequency and order size. The Best customers are high on both measures: Keep them happy with special privileges. The frequent customers are killing you. Their order sizes probably don't cover the costs of servicing the transactions: Find out what they are cherry picking you on and market a fuller basket of goods and services to them. Make them want to get into the  exclusive club. This is the biggest initial profit improvement opportunity you have.

3. Position in Higher Growth Segments Early. Place your bets, everyone. If you get higher share of the faster growth segments, your overall growth will be better than competitors. Don't wait until a market matures: the profit potential is all gone,  you won't be known in the category, and it will be harder to compete once others have advanced up the learning curve. Find out what you need to do now and start doing it.

4. Create Demand. Can't be done, you say? Do you think that all your customers and potential customers are aware of all their issues? Do you think they have any problems for which they are not aware of a solution? Do you think there are no women that complain about their kitchens, or bathrooms or lighting or window treatments and want solutions? Identify the seven biggest problems in a niche application. Then talk about them. This will awaken demand for a solution... which you offer... next. But make them click through to your website to get the answers... after coughing up their contact information.

5.  Wedge into Competitors customers (next blog entry... this is too much fun and there's enough here for a whole post!!)

6. Move into adjacent markets... (again... for a whole blog post after the "wedging" strategy, there's seven growth techniques right inside this one)