Once the company is created and the activity launched, it’s time to develop your business. The Manager’s Blog gives you the procedure to follow as well as some advice for successful development!
Developing your activity and your business is not a long, quiet river. You must in fact invest a significant amount of time and energy in order to see your business development come to fruition.
Take stock of the situation with a view to developing your business
Before developing your business, it may be interesting to take stock of your activity, in order to see the differentpossible areas of development.
It is advisable to ask yourself what the strong points and weak points of your activity are, to know the positioning of your activity in relation to competing offers, in terms of price, quality, innovation, the positioning of your company by relationship to the market, does your activity meet the needs of the market, also an update on your communication.
It is also essential to take stock of the financial situation of your business.
Once this inventory has been completed, you will know more about the different possibilities for developing your business: build on the strong points that you have identified, improve the weak points of your offer.
Choosing an improvement strategy to grow the business
Once you have carried out your inventory, you must then put in place a company improvement strategy.
This may lead to abandoning certain products or services that are too expensive, do not work or do not have high enough profitability, compared to your other offers.
One of the possible avenues for improvement also consists of improving your margin on products, or improving your rate of additional sales on which the margin is generally higher. Cost optimization also makes it possible to free up more cash flow through an increase in profit due to optimization.
LBdD advice : There is no secret: there are few improvements possible without investment. We must therefore not be afraid to invest, whether in time, money or communication.
You need to take the time to develop a good improvement strategy, and once it has been developed, make the necessary investments to give it the means to succeed.
The cost improvement strategy
This consists of reducing costs as much as possible, whether fixed charges or variable charges, in order to be able to offer prices lower than those of the competition. To do this, the company can act on several expenditure items such as procurement, by negotiating better prices with suppliers, production costs by trying to improve the production process, while maintaining equal quality, but also in distribution, marketing, etc.
Be careful, however, because this economy of scale strategy cannot be transposed to all companies. It is especially suitable for companies which are already well established in the market, and which are able to negotiate in order to be able to achieve economies of scale due to their production volumes.
The innovation and technology strategy
Technological innovation is a crucial factor in standing out from the competition and differentiating your company’s services or products. On the other hand, this strategy, depending on your sector of activity and the innovations concerned, quickly represents a significant investment both in financial terms and in terms of time, because it may lead you to recruit new people or affect certain employees. exclusively on these missions.
The differentiation strategy
It can sometimes be difficult to differentiate yourself from other offers on the market. The same goes for customers who sometimes struggle to identify the real particularity or added value of a product compared to a competing product. Adopting a differentiation strategy then allows you to clearly stand out, to offer a unique offer, the uniqueness of which is directly perceptible to the consumer. It is therefore advisable to support the uniqueness of your product through an effective communication campaign.
