The 4 Business Growth Strategies

Summary

The script outlines the four key business growth strategies in the Ansoff model: market penetration - selling more to existing customers; market development - selling existing offerings to new customer segments; product development - creating new products/services for existing customers; and diversification - new offerings for new customers. It recommends entrepreneurs focus on just one strategy for a 3-month period based on an analysis of internal strengths/weaknesses and external opportunities. The strategy chosen should match strengths to the greatest opportunities to drive fast, profitable growth rather than pursuing the most exciting option.

Takeaways

• 😀 There are 4 main business growth strategies: market penetration, market development, product development, and diversification
• 😃 Market penetration means selling more existing products to existing customers
• 😄 Market development involves selling existing products to new markets/customers
• 😁 Product development means creating new products to sell to existing customers
• 😆 Diversification is like starting a new business with new products for new markets
• 😊 Should focus on just one growth strategy for the next 3 months
• 😏 Do a SWOT analysis first to match strengths to best opportunities
• 😌 Pick the fastest, most profitable strategy, not necessarily the most exciting one
• 🙂 The key is to focus and execute well on whichever single strategy you pick
• 😉 Success comes from focus, discipline, and having money in the bank

Q & A

What are the four business growth strategies described in the video?

The four business growth strategies described are: 1) Market penetration - selling more existing products/services to existing customers 2) Market development - selling existing products/services to new markets/customer segments 3) Product development - creating new products/services for existing markets 4) Diversification - creating new products/services for new markets

What does a market penetration strategy involve?

A market penetration strategy involves finding more customers like your existing customers to sell your current products/services to.

What does a market development strategy entail?

A market development strategy entails taking your existing products/services and selling them in new markets or to new customer segments. This could involve new geographical markets or new niches.

What strategy do most entrepreneur clients like to pursue?

According to the video, most entrepreneur clients like to pursue a product development strategy, which involves developing new products and services to sell to their existing customers.

What time frame does the video recommend focusing on one strategy?

The video recommends focusing on one single strategy for a 3-month time period.

What analysis does the video recommend doing before choosing a strategy?

The video recommends doing a SWOT analysis first - examining internal strengths and weaknesses of your business, as well as external opportunities in the marketplace.

How should you match strengths to opportunities?

You should match your business's greatest strengths to the biggest opportunities available in the marketplace.

Why does the video recommend focusing on one strategy at a time?

The video says to focus on one single strategy for faster and more profitable growth, rather than trying to pursue multiple strategies at once.

What is diversification compared to the other strategies?

Diversification is developing entirely new products and services to sell in entirely new markets - almost like starting a new business.

Why might the most exciting strategy not be the best choice?

The video says even if a strategy seems the most exciting creatively, it may not generate profit and positive cash flow as quickly as another option.

Outlines

00:00

😊 Introducing Four Business Growth Strategies

The paragraph introduces the four business growth strategies from the Ansoff model - market penetration to find more customers, market development to sell products/services in new markets, product development to create new products/services for existing customers, and diversification to develop new products for new markets. It suggests focusing on just one strategy for the next three months.

😀 How to Choose the Best Growth Strategy

The paragraph advises doing a SWOT analysis first to understand internal strengths/weaknesses and external opportunities, and then matching strengths to the greatest opportunities. It recommends picking the fastest and most profitable strategy to focus on, even if it's not the most exciting option.

Keywords

💡Business growth strategies

The four main approaches a business can take to expand its operations and increase profits. These strategies are market penetration, market development, product development, and diversification. The script advises entrepreneurs to evaluate their strengths and weaknesses, identify the best opportunities available, and then focus intensely on pursuing one growth strategy over a 3-month period.

💡Market penetration

A growth strategy where a business sells more of its existing products or services to its current target customers. The script suggests this as one option entrepreneurs have for expanding their business.

💡Market development

A growth strategy where a business sells its existing products or services to new markets or customer segments. As stated in the script, this could involve expanding into new geographical areas or niche markets.

💡Product development

A growth strategy where a business creates new products or services to sell to its existing customers and markets. The script notes this is a popular choice for many entrepreneur clients as it builds on their current customer base.

💡Diversification

A growth strategy where a business develops entirely new products or services to sell to new markets and customer segments. The script compares this to "starting a new business" since it expands so significantly beyond current operations.

💡SWOT analysis

Assessing the internal Strengths and Weaknesses of a business, as well as the external Opportunities and Threats in its environment. The script advises doing this first to identify the best growth strategy to pursue based on a business's unique situation.

💡Focus

The script strongly emphasizes the importance of focusing intensely on a single growth strategy for a 3-month period instead of pursuing multiple options or getting distracted. This focus is key to effective implementation.

💡Profitability

While exploring new growth opportunities, the script reminds entrepreneurs not to lose sight of profitability. The best strategy may not be the most exciting, but rather the one that generates revenue and strengthens the business financially in the shortest term.

💡Niche markets

One form of market development where a business sells products or services to a specialized segment with unique needs and interests. The script mentions expanding into new niches as a way to find new customers.

💡Geographical expansion

One form of market development where a business sells products or services to customers in new geographical territories. As noted in the script, this could involve moving into new areas or regions to access different populations of potential buyers.

Highlights

There are four key business growth strategies to choose from called the Ansoff model

Market penetration involves finding more customers for your existing products in your existing market

Market development involves taking your existing products into new markets with new customer segments

Product development involves creating new products to sell to your existing customers

Diversification is like starting a new business with new products for new markets

Focus on just one growth strategy for a 3 month period for the best results

Do a SWOT analysis first to understand your business' strengths, weaknesses, opportunities and threats

Match your strengths to the best opportunities available when choosing a strategy

Focus on the fastest and most profitable strategy rather than the most exciting

Market penetration leverages existing products and customers

Market development reaches new segments without new offerings

Product development creates new offerings for existing segments

Diversification both extends offerings and reaches new segments

SWOT analysis informs strategic decisions

Matching strengths to opportunities optimizes growth potential

Transcripts

There are just four business growth strategies for you to choose from.

Let's talk about them!

So in this video, I want to share with you the four different business growth strategies

you can choose to implement in your business.

We call it the Ansoff model.

So basically the choices for you are, if you want to grow your business, are you going

to find more Betty and Bobs in order to sell your product or service to?

We call this a market penetration strategy.

The second choice that you have is a market development strategy.

This is where you take your product or service and whoever you're selling it to right now,

you go and develop new markets in order to sell your products and services.

Now, those markets could be new niches for you to go into, or they could be new geographical

areas for you to move into.

It doesn't matter.

We call that a market development strategy.

The third option, the one that most of my entrepreneur clients like to pursue, is the

product development strategy.

Product development strategy involves developing new products and services for you to sell

to clients that you already have.

And the final one we call diversification.

That's a lot like starting a new business.

It's where you develop new products and services for new markets.

So, which one should you choose for your business?

I say to my clients, why don't you think in a three-month block because three months right

now is a really long time, and why don't you focus on just one of those strategies?

That's right, just one of those strategies.

Which one should you choose?

Well, the place to start is to do a swat analysis on your business.

Go through your strengths.

Go through your weaknesses, then the things internal, the things that you can change in

your business, the things that you do well, and the places in your business where you

have little hold, the things that you don't do quite so well.

Go through your strengths and weaknesses.

You want to have great clarity about your strengths in particular.

The second thing you need to do is look outside of your business.

Look at what's happening in the world.

Look at what's happening in your marketplace.

Look at what's happening with your competitors.

And look for opportunities.

You want to match your strengths to the greatest opportunities available to you, and then pick

which of those strategies is going to work best for you, and then focus.

Focus, focus, focus!

I know you're an entrepreneur.

I know you like to create, but I also know that you like to have money in the bank account.

So the key to you is to pick the strategy that's going to work the fastest for you.

It might not be the most exciting right now, but it's going to be the most profitable.

So, choose your strategy and focus for the next three months.