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.