Not every small business wants to grow fast. But the ones that do usually have an ingenious spark that propels growth. They discover a new market. Target a customer niche. Or find a new solution to a business obstacle.
Creative advantage can spark growth, but turning a great idea into a growing business often means taking risks. Here are some tips to help you find your competitive edge, balance risk, and manage your resources for success.
Find your business’s edge.
Ingenuity often drives competitive advantages that lead to higher growth, profits, and returns on investments. While inspiration is key for every business, it’s especially important for small businesses that can’t match larger competitors’ breadth of resources.
As a small business owner, you can find and build on a creative edge by:
- Tapping into niches with product bundling or special servicing – Small businesses can often thrive where large businesses can’t easily go. That means seeing opportunities that others don’t and serving customers with a deeper understanding of their needs. Marketing to profitable niches was the top investment for small businesses in 2019.1
- Developing new products, services, and technology – The fastest-growing businesses are three times more likely to enter entirely new lines of business.1 Sometimes, that’s from developing new technologies or services, but it can also come from partnering to access an innovation. Or building sales and services to distribute a new offering.
- Expanding into new markets – Offering a successful product to more potential customers is one of the greatest sales opportunities. The fastest-growing companies are twice as likely to expand into new markets, and 42% are more likely to add a global partner to expand. 1
- Controlling costs and positioning as a low-cost supplier – By carefully controlling spending, you can do more with less. It can allow you to gain an advantage over larger organizations with better pricing and greater customer responsiveness.
Manage risks and resources.
Fast-growth companies often take bold risks to exploit their advantages. Here’s how you can manage those risks while you seize opportunities:
- Assess the risks – Understand what can happen to the economy and the market for your products. Evaluate your potential risks if employees, products, or customers don’t work out the way you planned.
- Line up financial resources to cover losses and backup plans – If something goes wrong, you’ll be able to react quickly. Cash reserves (go to Truist Small Business Money Market account) can also protect you from digging into your personal finances if a crisis occurs. Insurance for liability (learn about small business insurance), fraud, or business interruption can address specific threats and add another line of defense.
- Share the risks – Partners and contractors can bring skills, labor, and sales to your business. Partnering with other companies can also help you share the risks that come with ingenuity and growth.
We can help.
Find a branch near you and talk with a Truist banker about your plans. We can help you find ways to protect your business against risks as you aim for growth.