Everyone Wants To Grow Their Business And Earn More Money – Don’t They?
You basically have two options when you are running a business. You can continue what you are doing and let your business grow slowly. Or you can choose to take your business to the next level by investing more time and money.
Let’s take a closer look at the levels of risk involved in a business so you can decide if you are ready to move up a level.
Low Risk
If you are already turning a profit by selling your products or services, congratulations are in order. You have learned how to run a business. Your business will continue to grow, and you will not have to spend a lot of time or money researching or working with new suppliers.
Once you have gained a steady financial footing, you can:
- Branch out to offer discounts.
- Offer loyalty schemes to increase the number of customers that buy from you.
Mid-Risk
When you are ready to try something new, you can still do so with only a mild risk.
Examples of this are:
- Making changes to an existing product.
- Adding another service to a bundled package.
You may also choose to begin marketing to a new target market. As long as you do not invest large amounts of money and time into your marketing research, these methods are still considered mid-risk and will still help you grow your business.
High Risk
When you begin offering new products to a completely new targeted market, you are entering the world of high risk business. It’s great to diversify, but it involves a lot of time and money to ensure you are targeting the right market with your products. You may have no experience with this new market and every step feels risky.
You have been selling office supplies to small business owners and now want to branch out and form channel partnerships.
An example of areas you could look at include:
- Archiving.
- Data storage.
- Printed Merchandise.
- Furniture.
It’s in the same general area but will require vastly different marketing and products to become successful.
Read our Tips on how to form channel partnerships that last
If you are happy where your business is currently, you may not feel like investing in any risky practices. However, if you are looking to vastly increase your profit margins, you may have to take a few risks. It can be quite scary for a business owner to do something risky. But remember that the higher the risk, the higher the reward if you succeed.
What are your thoughts about ‘Risk Vs. Reward: How to Grow Your Business’?
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