There are still plenty of opportunities for ambitious businesses. Instead of focusing on external conditions, successful companies are looking internally to improve and expand their operations. Brands such as Netflix, Airbnb, Lego, and Warby Parker all saw impressive growth during the Great Recession. Similarly, businesses today are finding strategic ways to grow efficiently. According to a Fortune/Deloitte survey, 37% of CEOs expected strong or very strong growth over the next 12 months, highlighting the optimism among business leaders. Here are seven tested strategies to help your business make its next big leap.
1. Expanding Product and Service Offerings
Creating new products and services to meet current customer needs or attract new ones is a proven growth method. This can involve adding capabilities to existing offerings or launching new but related products or services. A hybrid approach, combining products and services, can also boost revenue and smooth out cash flows. For example, Garmin offers satellite communicators along with a subscription plan, providing superior value to customers.
One trend is “engine 2” growth, which involves investing in a second core business that leverages the assets and capabilities of the initial core business. For instance, Netflix added streaming to its original DVD-by-mail service.
Case Study: Studio McGee
Studio McGee, founded by Shea and Syd McGee in 2014, started as an interior design service. They expanded into the product side of home design, launching an ordering service and a direct-to-consumer e-commerce store. Today, Studio McGee manages various offerings, including a product line with furniture, decor, and partnerships with brands like Target.
2. Going International
Expanding into international markets can be a logical next step once a business has demonstrated success in its home market. Europe, Latin America, South America, and Asia-Pacific are popular regions for US direct investment. However, international expansion presents challenges, such as managing different currencies, shipping logistics, and local regulations.
Case Study: Paysend
Paysend, a global payments provider, started in the UK and expanded rapidly. Managing operations in different countries with multiple systems became complex. They unified their operations with NetSuite OneWorld, allowing them to handle millions of transactions across 190 countries efficiently.
3. Divesting to Reinvest
Selling part of the company can drive long-term growth by focusing on core strengths. This strategy involves selling non-core parts of the business to reallocate resources and capital towards growth investments.
Case Study: Action Bag Co.
Action Bag Co. sold its retail gift supply business to focus on its growing healthcare packaging division. This strategic move allowed them to enhance their core strengths and better serve their customers, ultimately improving patient outcomes and facilities.
4. Building Processes That Scale
Rapid growth can break existing processes. It’s crucial to build scalable processes and systems that can handle increased sales, customers, and employees. Automating and integrating systems can streamline operations and provide valuable insights.
Case Study: BirdRock Brands
BirdRock Brands experienced rapid growth after selling on Amazon. Managing orders manually became untenable, so they consolidated and automated their processes with NetSuite. This integration provided real-time data and automation, supporting their continued growth.
5. Prioritising Education Around Technology
Technology is essential for growth, but it’s only as good as the people using it. Training employees on technology systems is crucial. Companies with a strong learning culture are more likely to develop novel products, be productive, and profitable.
Case Study: The Fan-Brand
The Fan-Brand emphasised technology training through NetSuite Learning Cloud Support (LCS). This education empowered their team to manage and scale operations efficiently, even with a lean IT department.
6. Tapping Private Equity or Venture Capital Investment
Private equity or venture capital investment can accelerate growth. CFOs at PE-backed companies must focus on presenting data effectively to drive business decisions. This involves aligning on investor priorities and providing trusted data.
Case Study: Innovative Health and Wellness Company
A health and wellness company received over £60 million in late-stage funding to fuel growth. Implementing NetSuite OneWorld improved their financial processes and decision-making, supporting strategic and operational improvements.
7. Acquiring and Integrating Businesses
Acquisitions offer significant growth opportunities but come with risks. Leaders must decide how to integrate products, cultures, and systems of acquired businesses. Visibility into operations is essential for successful integration.
Case Study: Granite Partners
Granite Partners, a long-term private investment and holding company, uses NetSuite to manage its portfolio of 10 companies. Each company operates independently but collaborates on shared services, leveraging NetSuite for visibility and insights across the portfolio.
Grow on NetSuite
The success of the companies mentioned is a testament to the creativity and innovation of their employees. NetSuite provided the technological foundation to support their growth strategies. By running financials, sales, supply chain, services, and commerce on a single platform, NetSuite can help your business pursue these growth strategies and achieve its next big leap.
For more insights and guidance on growing your business, get in touch with Cofficient today!
