U.S. small business optimism is on the rise. In fact, it’s the highest it’s been in well over decade, according to data from the National Federation of Independent Business (NFIB).
This is what the NFIB had to say about the state of U.S. small business at the start of 2017:
“Small business is ready for a breakout, and that can only mean very good things for the U.S. economy. Business owners are feeling better about taking risks and making investments.”
A recent survey conducted by AllState/USA Today showed that 64% of small businesses say they are doing well. That’s up from 61% in 2015. Nearly three-quarters of businesses also say they expect to do well in the coming year, up from around two-thirds in late 2015.
Businesses are brimming with confidence, which puts them in a better position to hire on more workers and expand their operations. Luckily, interest rates are sill very low by historical standards. This gives entrepreneurs plenty of options to leverage affordable lending solutions to grow their business.
With the U.S. economy on the move, business owners are looking for new ways to tap into growing markets. If you’re a small business owner looking to take advantage of a stronger economy, we’ve outlined five strategies below that can help you maximize growth. Sometimes you have to give a little to get a lot. We feel this aptly describes the following list.
1. Open another location or expand your product/service offering
Expansion often comes to mind when business owners think about growing their business. If your business is on the up and up, it may be time to expand your product offering or open up another location entirely. Although physical expansion isn’t always the best path to grow, it’s a viable option for businesses with strong bottom-line profit and steady revenue. If you identify growing demand for your product or service in another region o, it may be time to put together a business plan for another location.
However, before you go down this path it’s important to make sure your business is ready to scale up. This means having a strong administrative system in place, as well as a keen management team ready to grow your brand.
2. Diversify your business
One of the best ways to grow your business is to diversify it. This includes selling complementary products or services and finding new revenue streams for your existing business. The whole point of diversification is not to rely on one product, but to latch on to other revenue models. This may include offering your product overseas, selling online and providing integrated solutions to new and existing clients. Whatever you do, think of more ways to tap into additional revenue streams from your existing business.
3. Hire the right talent
The pareto principle says that 20% of workers produce 80% of a company’s results. Are you hiring the right people? Answering this question can be the key to unlocking tremendous growth. The jobs market is highly competitive right now, but you can still find the right talent by offering good incentives. This doesn’t have to be solely monetary. After all, workers are looking to contribute in a meaningful way. The promise of long-term growth with an up-and-coming business can help you entice the right talent to your brand. Small businesses that plan on being around for a while need to find the right people to grow with them.
4. Focus on the customer experience
We all know that satisfying the customer is the No. 1 priority in business. How the customer perceives your business can really dictate its future success. Small businesses have an advantage over their larger counterparts because they are nimble and better able to respond to their customers’ needs. In the modern age, “customer experience” often begins with your website and ends with customer service. You want to ensure a pleasant and easy transaction from first contact until point of sales. Listening to your market and giving it what it needs is part and parcel of a successful business.
5. Invest in your company
It’s often said you need to spend money to make money. This is especially true for companies that are in their early growth phase. Upgrading your IT infrastructure, investing in the right people and improving your product or service costs money. However, these investments will generate a lot more business for you in the future by giving you the scalability to grow. Although this means making difficult decisions early on, such as redirecting revenue back into the business, it’ll put you on the path to long-term growth.
Contact Red Door Capital
If expansion is on your radar, you’re probably wondering about how to finance the next phase of your business. Red Door Capital has financing solutions that can get you through the complex funding process. We’ll introduce you to an entire network of lenders that extends beyond the traditional banks. In addition to a customized growth strategy, Red Door also provides cash flow solutions, credit and debit services, cash management and merchant services and specialty financing.
If you’re looking to expand but don’t know where to start, contact us today for more information. It’s never too early or too late to speak with a credit professional about your business dreams.
Thinking about growth? The following articles can help you build your ideal business:
- IT Outsourcing for Startups: A Proven Strategy for Growing Your Business
- Purchase Order Financing: Focus on Sales, Not Capital
- Easy Ways to Accept Online Payments for Small Business
Paul Davidson (April 26, 2017). “Small business optimism is soaring.” USA Today.
Jeffrey Dorfman (March 5 2017). “Small Business Owner Confidence Surge Under President Trump For No Particular Reason.” Forbes.
Shannon Gausepohl (May 11, 2016). “7 Secrets for Growing Your Business Quickly.” Business News Daily.
Vince Golle (January 10, 2017). “U.S. Small-Business Optimism Index Surges by Most Since 1980.’ Bloomberg.
QuickBooks. “4 Ways to Diversify Your Business Offerings.”
Karen E. Spaeder (May11, 2004). “10 Ways to Grow Your Business.” Entrepreneur.