Once the first months and even the first year of the business have passed, many entrepreneurs start to ask themselves:
How can I make my business GROW?
Throughout my professional life I have had the good fortune to identify more than four hundred ways to Grow Companies and Organisations, and I am still learning new ways to do so every day.
This wealth of possibilities means that the crux of the matter is not only knowing all the options, but also knowing how to choose the most appropriate ingredients (Growth Actions) for each business, situation, sector and entrepreneurial team.
However, I would dare to say that one of them is applicable to the vast majority of companies - we are talking about knowing how to correctly structure the Value Chain of your company or business.
Let's take a simple look at the 'Teragrowth' version of the Value Chain in PHASES.
1st Phase: Correctly defining your purpose and objectives.
Know why you have started the Company. What is the mission you are pursuing and what are you passionate about. How your Company will improve the world, your customers, or your environment. To whom you will add value. What do you expect from it beyond the legitimate economic return.
This first phase is essential because it mobilises our inner mind, that of the emotions, which will push us to persevere beyond the barriers and problems that we will have. It connects our Project with our soul and aligns all our efforts to increase the probability of success in our initiative.
Stage 2: Identify your blue ocean and develop your business model
Knowing which market you are targeting is essential to focus your efforts. Sometimes it will be a Red Ocean that is already occupied. Other times you will be reinventing the ocean and turning it Blue. In a few you will have identified a small blue lake to reach first.
Whatever the path, once you are clear about who you are targeting, you can design your Business Model, for example using the Canvas Methodology.
It can be traditional and try to beat competitors with better management and operation, or it can be totally groundbreaking as Freemium or Crowdsourcing Models were at the time they appeared.
Regardless of which model you choose, remember that a high percentage of the probability of success and growth of your company will depend on the business model you choose or have designed.
3rd Phase: Develop your strategy
There are thousands of possible Strategies. Some will take your Company to the light and many others directly to oblivion.
Since success will depend on many different variables, I cannot comment on any specific advice as to which strategy might be better or worse in your case. However, I dare to recommend two points that you need to take into account when designing Strategies for your Company:
Beyond the choice of the Strategy itself (e.g. enter such and such a market), consider the Strategy Implementation Sequence, i.e. what steps you will take to deploy the Strategy.
A normal Strategy that is excellently executed will always be better than an excellent Strategy that is poorly executed.
Phase 4: Identify your customers
Knowing your Customers well - but well - is essential to be able to carry out the following Phases. The more information you can gather about them the better.
Focus first on their Needs or Unsolved Problems.
Make clusters of potential Customers and focus what you offer to them, not to a general public.
Phase 5: Design your product, service or solutions
Only once you know your potential Customers very well should you design your Product or Service.
Yes, it is true that sometimes the need is created by the product (i.e. iPhone, iPad, etc...) but in 99% of the cases what you will do is to facilitate something that today is complex, cover a need, eliminate a problem or give a differential value appreciated by the Customer.
6th Phase: Find customers (Push) and/or attract them (Pull)
Normally, customers do not rain from heaven. You have to go and look for them (Push) or, even better, attract them to you (Pull).
This is a key phase - and there are many, many unique and combined (Push+Pull) ways to achieve it. Choose yours and go for it.
Phase 7: Sell your product or service
Now you have to Sell.
Do you know how to do it? Directly or indirectly? Value or volume oriented? Which channels will you choose? Will you use simple strategies or advanced sales ecosystems?
Selling is an Art but also a Science. And it will be essential to grow your business.
Phase 8: Manage your company's operations
Now you have to deliver what was promised in the Sale. Whether it is a Product that delivers the required features, a Service with a Service Level Agreement or SLA, or a Solution with very tangible Benefits, you have to be Excellent at it.
In a 2.0, social, collaborative and on-line world, 'Quality is assumed'. And especially in the personal consumption market, mistakes will be paid for very dearly and very quickly.
Phase 9: Ensure complete CUSTOMER SATISFACTION
Therefore, you will have to ensure that all the Phases and especially the 8th PHASE lead to a high degree of Customer Satisfaction.
The objective is not so much to please the Customer but to create a dynamic of return to your Product or Service as well as a positive word-of-mouth that makes your Company go viral.
If you manage to structure these 9 Phases of the Value Chain correctly, you will have achieved a lot in your objective of making your Company or Business grow.