{"id":109112,"date":"2024-06-14T11:30:00","date_gmt":"2024-06-14T15:30:00","guid":{"rendered":"http:\/\/www.constantcontact.com\/blog\/?p=109112"},"modified":"2025-04-14T16:50:34","modified_gmt":"2025-04-14T20:50:34","slug":"small-business-growth","status":"publish","type":"post","link":"https:\/\/www.constantcontact.com\/blog\/small-business-growth\/","title":{"rendered":"Growing a Small Business: Maximizing Potential from Start-up to Scale-up"},"content":{"rendered":"\n

Every business started small, whether five years ago or 50. Even the largest corporations once had a handful of employees — or none at all.<\/p>\n\n\n\n

Did you know there are over 33 million small businesses<\/a> in the United States? They account for over 99% of American companies. The thriving corporations of tomorrow are among those small organizations. <\/p>\n\n\n\n

The U.S. government classifies small businesses by industry<\/a>, with the lowest maximum being $2.25 million in revenue or 100 employees. You’re growing a small business if you’re under your industry’s minimum and working to expand.<\/p>\n\n\n\n

To make that happen, you’ll need a growth strategy — a plan for when and how to expand your small business. By the time we finish here, you’ll have the framework of a plan you can start using immediately.<\/p>\n\n\n\n

Strategies for business growth<\/strong><\/h2>\n\n\n\n

Small business growth<\/a> is a game of skill, not luck. You need proven success tactics as part of a strategy that makes sense for your <\/em>organization — not “companies in general.”<\/p>\n\n\n\n

Consider this section your blueprint. Read through these six tips on growing a small business, then brainstorm how they would apply to your company.<\/p>\n\n\n\n

1. Conducting research and market analysis<\/strong><\/h3>\n\n\n\n

We live in a data-driven world where the more information you have on your market, the more effectively you can grow your small business.<\/p>\n\n\n\n

So, let go of the idea that market research and analysis are big-budget strategies. If you have a website and a basic social media page, you can gather data on the kinds of customers that gravitate to your business.<\/p>\n\n\n\n

To learn about the competition, check out industry-related pages on sites like Reddit and Quora. Search for topics that match the problems you solve and the questions you answer. Then, research how your competitors do things. You can learn from their successes and mistakes.<\/p>\n\n\n\n

2. Building a marketing and sales funnel<\/strong><\/h3>\n\n\n\n

Imagine you’re pouring flour through a funnel to fill a large jar. The more flour you pour into the funnel, the faster you fill the jar.<\/p>\n\n\n\n

If that sounds obvious, consider whether you’ve created a purposeful sales funnel. Many companies don’t, which turns their customer pathway into a marketing sieve.<\/p>\n\n\n\n

It takes about eight touchpoints<\/a> with a company before a customer buys, and those touchpoints follow a predictable pathway.<\/p>\n\n\n\n

\"My
Here’s a great visual representation of how the marketing and sales process “funnels” customers to conversion and then keeps them coming back. Image source: My Own Business Institute<\/a><\/figcaption><\/figure>\n\n\n\n

The more you know about your funnel, the more strategic you can be about your customer messaging. Think about what you can say to move each reader to the next phase.<\/p>\n\n\n\n

3. Optimizing customer retention and acquisition<\/strong><\/h3>\n\n\n\n

Remember the old saying, “Make new friends but keep the old”? It’s also the best possible motto for growing a small business. <\/p>\n\n\n\n

When customers are happy enough to come back, they drive more revenue at a lower cost. According to one management consulting exec, businesses must acquire three new buyers to make up the revenue from one lost customer<\/a>. This retention is a matter of offering a great experience and staying in touch between purchases. <\/p>\n\n\n\n

Take email marketing for small businesses<\/a>, for example. By sending the right messages at the right time, you can stay top-of-mind with buyers who already appreciate you. <\/p>\n\n\n\n

4. Leveraging corporate social responsibility<\/strong><\/h3>\n\n\n\n

Growing a small business means adapting to what the market wants, and today’s market wants responsible companies. Over the past five years, 56% of revenue growth belonged to companies making environmental, social, and governance (ESG) claims<\/a> — in other words, promising to use their resources to make the world better. <\/p>\n\n\n\n

Now, look at the difference between ESG-aware and non-ESG-aware companies:<\/p>\n\n\n\n

\"McKinsey<\/figure>\n\n\n\n

This data shows how much more consumer money goes to companies showing corporate social responsibility. Image source: McKinsey & Company
<\/a><\/p>\n\n\n\n

Giving back isn’t just kind; it’s strategic — especially for small businesses aiming to grow.<\/p>\n\n\n\n

5. Forming strategic partnerships <\/strong><\/h3>\n\n\n\n

Speaking of strategy, did you know you don’t have to grow alone? Joining forces with a partner program<\/a> can help you expand your reach while helping another business grow, too. <\/p>\n\n\n\n

Here’s one of the best-known examples, at least among book lovers and coffee enthusiasts:<\/p>\n\n\n\n

\"Barnes
One of the most beloved strategic partnerships in the book community is Starbucks and Barnes & Noble.  The iconic coffee brand has enticed countless consumers to browse the stacks. Image source: Barnes & Noble<\/a><\/figcaption><\/figure>\n\n\n\n

You don’t have to be Starbucks and Barnes & Noble to make this work. The key is finding a non-competing business that serves a similar audience. <\/p>\n\n\n\n

For example, if you have a real estate brokerage<\/a> and want to expand in your area, you might buddy up with a mortgage company. You refer clients to each other, giving both a better chance of growing.<\/p>\n\n\n\n

6. Exploring scalability options<\/strong><\/h3>\n\n\n\n

Marketing isn’t the only way to increase revenue for your small business<\/a>. Adding or repackaging products or services is another option. Subscription options can work well for companies with frequent recurring purchases, and any business can try cross-selling at the point of sale.<\/p>\n\n\n\n

Then, there’s the big F — franchising your business<\/a> — a strategy for those with a solid business model and the ability to handle more locations. Franchising lets you partner with another entrepreneur to serve a broader geographic base.<\/p>\n\n\n\n

What are the five stages of business growth?<\/strong><\/h2>\n\n\n\n

Growing a small business happens in four to five stages<\/a>, presented here as five for clarity. <\/p>\n\n\n\n

They are:<\/p>\n\n\n\n

    \n
  1. Operational: <\/strong>You’re in business but still working toward a sustainable model.<\/li>\n\n\n\n
  2. Viable:<\/strong> You have a product or service that brings in and retains customers. You’re close to or just achieving positive cash flow.<\/li>\n\n\n\n
  3. Succeeding: <\/strong>You’re consistently in the black and are ready to grow or stay where you are, depending on your goals.<\/li>\n\n\n\n
  4. Scaling: <\/strong>You make the management and cash flow decisions shaping your company as it grows.<\/li>\n\n\n\n
  5. Maturing systems: <\/strong>You use rapidly increasing resources to scale your management team and tech infrastructure. You think bigger in your strategic planning.<\/li>\n<\/ol>\n\n\n\n

    The most significant difference between stages is how you plan and prioritize. Your bottom-line numbers should consistently increase — but expect some peaks and valleys. <\/p>\n\n\n\n

    Check out this typical trajectory:<\/p>\n\n\n\n

    \"Canadian
    This visualization shows the milestones that launch a business into its next stage. Notice there are times when revenue growth slows down a bit, but the company keeps moving forward. Image source: Canadian Angel Investment Foundation<\/a>.<\/figcaption><\/figure>\n\n\n\n

    Strategic decision-making is crucial to successfully navigating this process. Always think about what you want the company to look like two or three stages ahead, and use that vision to structure your management team. Hiring and delegating are the keys to avoiding inefficiency.<\/p>\n\n\n\n

    Operations and marketing: Setting yourself up for growth<\/strong><\/h2>\n\n\n\n

    Growth isn’t just about marketing — it also requires rethinking how your business works. When companies implement purposeful growth-focused operational models<\/a>, their shareholder returns are three times higher. <\/p>\n\n\n\n

    Scalable systems<\/strong><\/h3>\n\n\n\n

    To prepare for growth, you can look ahead to the kind of business you want to be in a few years and determine if your tech stack can support it.<\/p>\n\n\n\n

    If you’re poised for growth, it’s time to invest in more scalable systems. The best software for a growing small business includes:<\/p>\n\n\n\n