take a leading position in the market and increase sales volumes by X times in 3 years;
open X branches in other regions over the course of 4 years;
develop and sell U units of a new product per year;
increase the assortment of the outlet by N items and open a large store in 2 years.
The next step is to describe the kuwait whatsapp numbers global tasks for each goal. To reach the top of the market, you need to:
expand warehouse space;
modernize production facilities;
increase the number of sales department staff;
find new methods of promotion;
conclude supply contracts with large networks;
open sales points in all areas of the city.
There are no goals and objectives that can be formulated for all cases. They are developed separately for each company. After determining the direction of business development, tactics should be developed and operational activities should be adjusted. To achieve the planned results, it is important to set realistic deadlines.
The result of the steps described above will be an adaptive documented program, which should be periodically reviewed in the future, taking into account changes in the external environment and the internal state of the company. Regularly evaluate the actual direction of business development and its compliance with the initial intentions. Then make adjustments to the strategy, supplementing it with new goals.
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Differences in development strategy for small businesses
Since all stages of developing the development policy of small, medium and large companies are the same, the question may arise: what is the difference between small and large businesses? It is clear that the main difference is in financial volumes and decision-making centers.
The larger the company, the more complex its structure, the greater the number of owners, shareholders, and managers who control each other. The third distinctive feature is the hierarchy of managers-executors. In large companies it is more ramified.
A business development strategy should not be viewed as a set of ready-made solutions. It includes large-scale goals, taking into account which management decisions are made in different situations.
Small businesses are more focused on specifics. They are less interested in abstract concepts such as global vision, company mission, etc. When developing a strategy for small businesses, more attention should be paid to the profitability and stability of the business. Without income, there is no development.
Differences in development strategy for small businesses
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A competent business strategy is built on specific metrics. The first parameter is turnover (cash receipts for a certain period). It can be increased in two ways:
attracting new customers;
encouraging existing customers to make more purchases.
In this context, the marketing component of the strategy should be considered. Marketing is aimed at attracting new customers. At the same time, from the standpoint of business development strategy, it is important to determine the company's target audience and clarify whether consumers from this segment are capable of making purchases again. In addition, it is necessary to understand whether the business itself is interested in repeat transactions, since a number of areas do not imply such operations.
The next step is to answer another important question: can the enterprise attract the target audience and what costs are required to attract each target client. The answer can be formed in the form of hypotheses.
Then your assumptions need to be tested in practice. To do this, analyze expenses and calculate the average cost of attracting each client. You can use the following formula: the amount spent on marketing activities is divided by the number of customers received.
For example, in the restaurant business, the rental of premises should be included in marketing costs, since the number of customers depends on its location. Here you can determine the cost of attracting visitors to establishments located in different locations.
Let's sum it up: we need to get answers to two key questions:
Who is the most desirable client for the company?
How does a business attract or will it attract such customers?
A number of marketing researchers believe that it can cost up to ten times more to mobilize a new customer than to retain one. It turns out that, from an economic point of view, loyal customers who buy again are more useful for business.
Differences in development strategy for small businesses
Source: shutterstock.com
Next, we should consider a set of indicators that relate to the profitability of the business. Profit is income minus expenses and tax payments. Thus, for the success of a business, not only the amount of all receipts is important, but also the effectiveness of cost management. The funds spent on attracting customers are variable costs. At the same time, a business also has fixed costs, which also need to be managed correctly.
It may seem that developing a strategy for a small business is easier, since there are fewer owners, managers and finances. The problem is often that in small companies the owner also acts as the board of directors, manager, etc.
Concentration of management functions in