10 Best Small Business Growth Strategies You Should Know

Looking to grow your business? Read on for 10 small business growth strategy tips to help you spread your wings.

So, you’ve taken the leap and turned your passion project into a fledgling business. Great! Every company starts small – even Apple was launched from a garage – but what helps them succeed is ambition and a carefully planned business growth strategy.

Around 20% of new businesses go bust in the first year, whilst a staggering 50% don’t make it past the five-year mark¹, so getting your business growth strategy correct is key. Here’s how to do just that.

10 business growth strategies for small businesses

1. Competitor analysis

Competitive analysis is more than just keeping tabs on what strategies other businesses are pursuing. It's about gaining a deep understanding of your market landscape, identifying opportunities for growth, and making informed decisions that set your business apart. A successful competitor analysis can:

• Uncover Hidden Opportunities: Find gaps in the market where customer needs are not being met, allowing you to act swiftly to plug the gap and capture new market share.
• Learn from the Best: Discover best practices for marketing, sales, and customer service that you can adapt and implement to improve your own operations.
• Stay Ahead of the Curve: Identify emerging market trends and adjust your business strategies proactively, rather than reactively, to remain competitive.
• Make Informed Decisions Faster: Arm yourself with actionable insights into growth that speed up decision-making by 5 times . Focusing on data-driven analysis allows small businesses to stay one step ahead of market rivals. A strategy already being used by a majority of Fortune 500 companies.

As a business growth strategy, insights from a competitor analysis might mean selling your products at a cheaper price point than other players in the market, or introducing new products and services that aren't already out there. For those looking for a way to get a headstart, DHL Express’s free competitor analysis template can provide a structured approach to gathering and evaluating key information about your competitors.​​

2. Product expansion & diversification

Before throwing lots of money at new product development, it’s worth reviewing your existing e-commerce business’s product portfolio to find where refreshes could be made instead. Look at your lowest-selling items and ask some key questions:

• What market trends are happening that might be impacting sales?
• Are you listening to customer feedback? What are they saying about your products on social media and review sites?
• Are your products priced correctly? Look at your competitors’ price points – can you match or go lower?
• Is your marketing strategy still on point? Perhaps your customers’ priorities have shifted, which in turn should impact how you position your brand.

Together, these insights will help you determine what improvements can be made – or which products might need to be retired altogether. Remember, sometimes the most lucrative growth opportunities for small businesses lie within their existing product line.

Explore opportunities to upsell or cross-sell to your current customer base. This could involve offering premium versions of your products, complementary add-ons, or bundled packages that provide additional value.  

Before fully committing to any major product changes or expansions, consider conducting small-scale user testing and A/B testing. This allows you to gather real-world feedback and data about new features or variations and minimize risks.

Examples of effective strategies to  strategies spot the latest trends in e-commerce and fuel sustainable business growth include:

• Competitor analysis reports: Stay informed about your competitors' strategies, product launches, and marketing initiatives.
• Google Trends and social media monitoring: Track popular search terms, hashtags, and conversations to identify emerging trends and consumer interests.
• Industry publications and news: Follow industry-specific news sources to stay abreast of the latest developments and innovations.

3. Market segmentation

As a small business, it can be hard to compete with giants like Amazon and Etsy, but a segmented marketing strategy can help you by filtering a broader audience group into smaller groups that you can target with personalized campaigns. The benefits of such a growth strategy include: 

• More targeted campaigns: By understanding the unique needs and preferences of each segment, you can create highly relevant and personalized marketing messages that resonate with your audience.
• Higher marketing ROI: Instead of spreading your marketing budget thin across a broad audience, you can focus your resources on the segments that are most likely to convert.
• Stronger customer relationships: By demonstrating a deep understanding of your customers' needs offerings, you can foster loyalty and build long-lasting relationships with your audience.

You will have to invest some time to really understand which market segments are most likely to buy each of your products. Website analytics and purchase history will help here. But to further enhance your understanding of your target market, consider incorporating various data sources into your segmentation efforts:

• Customer Surveys and Feedback
• Online Reviews and Social Media Monitoring
• Market Research and Industry Reports
• Third-Party Analytics Tools

You can tailor your marketing per segment, for better conversion rates and leverage your customer data to expand your existing market penetration. As your business grows and your segmentation efforts expand, consider adopting marketing automation tools to streamline your processes.

4. Selecting the right channels

These days, consumers’ online footprints are vast, varied, and growing. They might browse for products on social media, compare prices on small and large marketplaces, and then finalize their purchase on a brand’s e-commerce website. All of these platforms present sales opportunities for your business. Some top tips:

• Consider selling on an online marketplace. 60% of US consumers now start their product searches on Amazon² (compared to 49% on a search engine), so it will pay to be there. Check out our guide to the leading online marketplaces to get started.
• Research the different ways you can sell through social media. For example, Instagram has a dedicated e-commerce tool that allows followers browsing your page to purchase products without leaving the app. The ease of this is a big sales incentive for consumers and could bring in lots of extra revenue for your business.
• Keep in mind that selecting the right channels requires a deep understanding of the target market you are planning to sell to as well as your business's unique selling proposition and current growth stage. Each company has its own unique audience, product, and positioning, and a strategy that works for one might not necessarily translate to success for your small business.
• However, it’s worth looking at examples of how other businesses have leveraged different channels as part of their strategies to achieve sustainable growth:
• For example, MasterClass saw tremendous success using SEO. By crafting content that specifically targeted search terms related to learning, they increased visibility for their platform and drew in users.
• In contrast, One Championship, a leading martial arts organization, used social media to connect with fans worldwide. By producing engaging behind-the-scenes content and leveraging influencer marketing, they built a highly engaged community that translated to both event attendance and merchandise sales.
• Large enterprises find success using Google Ads to dominate search results and capture customer interest at the decision-making stage. Paid search ensures they stay top-of-mind for users actively looking for solutions, driving leads and sales.

5. Partnerships

A great way for a small business to expand its market penetration and increase growth is to team up with another brand. Let’s say you run a candle business. You could, for example, partner with a local spa to offer their visitors a discount for your website with every treatment they buy.

The partner shouldn’t be a direct competitor (i.e., another candle brand); rather one that has an overlapping audience with yours. You’ll both benefit from exposure amongst the other’s existing customers, which can boost sales for everyone. Think about what your customers would like and reach out to some exciting brands. You’ve got nothing to lose!

In addition to the above, partnerships can take the following forms:

• Joint promotions: These allow both businesses to offer discounts or bundles. A good example is the Uber and Spotify partnership, where users could control the music in their Uber ride.
• Co-branding: This strategy brings together two brands to create a unique product or service. The collaboration between Nike and Apple on the Nike+ running sensor is a great example, merging fitness with tech and boosting sales for both brands.
• Content collaborations: Collaborations like the one between Red Bull and GoPro, can amplify both brands' engagement through shared, co-created content, increasing visibility and interaction.

Some of the quantifiable benefits of successful partnerships include increased website traffic, higher sales, and increased engagement. However, the hurdle for many small businesses looking to leverage on this strategy is usually finding the right partners, identifying trends in consumer behavior they can leverage, and establishing a mutually beneficial arrangement. Here are some pointers to consider:

1. Research potential partners: Look for brands that align with your values and share a similar audience without being a direct competitor.
2. Pitch the idea: Present a clear proposal outlining how both parties will benefit, including specific potential outcomes like increased traffic or sales.
3. Set clear goals: Establish what you want to achieve—be it traffic growth, higher sales, or improved engagement—and track these metrics throughout the partnership.

 6. Customer retention & long-term satisfaction

Attracting new customers is important, but retaining existing ones is crucial for long-term success and is a key component of e-commerce best practices that drive customer loyalty and satisfaction. To cultivate long-term satisfaction, consider implementing popular retention tactics like:

• Loyalty programs: Reward customers for their continued business with exclusive discounts, early access to new products, or personalized perks.
• Subscriptions: Offer subscription-based services or products that provide ongoing value and convenience, ensuring a steady stream of recurring revenue.
• Community building: Foster a sense of belonging by creating online communities or hosting events where customers can connect and engage with your brand.

When thinking about customer retention as part of the strategy for your small business growth, consider frameworks like the "Engagement-Stickiness-Retention" model and the “logistic regression” model:

• Engagement: Attract and actively involve customers with your brand through relevant content, interactive experiences, and personalized communication.
• Stickiness: Create a sense of habit and reliance by providing products or services that become an integral part of your customers' lives.
• Retention: Build loyalty and encourage repeat business by consistently delivering value, exceeding expectations, and fostering positive relationships.
• Logistic Regression: Utilize logistic regression to predict customer churn and identify those at risk, allowing you to proactively implement retention strategies. For instance, if data reveals that customers tend to leave after a specific negative experience, you can implement strategies to mitigate these risks—such as enhancing customer service training or refining product quality.

7. Leverage data and analytics

In today's data-rich environment, harnessing the power of analytics is essential for any business seeking to thrive and grow. Data-driven decision-making empowers you to:

• Identify Trends and Patterns: Uncover hidden insights in your sales, customer behavior, and market data to anticipate future trends and make proactive adjustments to your strategies.
• Optimize Operations: Analyze your processes and identify areas for improvement, streamline workflows, and reduce costs.
• Personalize Customer Experiences: Tailor your marketing efforts and product recommendations based on individual preferences and behaviors, enhancing customer satisfaction and loyalty.
• Make Informed Business Decisions: Base your strategic decisions on concrete evidence and data-backed insights, minimizing risks and maximizing opportunities.

One example of a powerful analytics platform that can enhance your decision-making and minimize supply chain risks is DHL's Everstream Analytics. This platform offers real-time visibility into your supply chain, providing you with the information you need to anticipate disruptions, proactively manage risks, and make informed decisions that keep your business running smoothly.

8. Diversify revenue streams 

Diversifying your revenue streams is not just about increasing income. It's about creating a safety net that protects your business from potential downturns and drives sustainable growth, while positioning you to capitalize on potential new opportunities.

Consider the example of Uber: Originally known solely for its ride-hailing service, Uber has successfully diversified its revenue streams by expanding into food delivery (Uber Eats), freight transportation (Uber Freight), and other local services. This diversification has not only increased Uber's overall revenue but has also made the company more resilient in the face of economic challenges.

Similarly, B2C businesses can strategically diversify by moving into the B2B e-commerce arena, tapping into a brand new customer base and generating growth. Conversely, B2B companies can use the same strategy to explore B2C opportunities to enhance market reach and brand visibility. This reciprocal approach enables small businesses to leverage existing resources while fostering resilience and adaptability in a dynamic market.

9. Build a strong brand identity

A strong brand identity is essential for sustainable business growth and enduring customer loyalty. A well-defined brand identity not only differentiates you from competitors but also fosters trust, drives repeat business, and commands a premium price point.  

For example, recent studies by Nielsen highlight the dangers of over-focusing on performance marketing at the expense of brand building. Brands that neglect their long-term brand health risk losing out on future sales and market share, as short-term gains often come at the cost of long-term sustainability.  

To build a strong brand identity for your e-commerce business:

Define your brand values and mission: Clearly articulate what your brand stands for, the problems you solve, and the impact you want to make.

Craft a compelling brand story: Tell a captivating narrative that connects with your audience on an emotional level and showcases your unique value proposition.  

Develop consistent visual and messaging elements: Create a cohesive brand experience across all touchpoints, from your website and marketing materials to your product packaging and customer service interactions.  

Measure and track brand performance: Utilize specific metrics to gauge brand awareness, perception, and loyalty. Track how these metrics correlate with sales and revenue to demonstrate the tangible impact of your brand-building efforts.   

10. Embrace innovation and adaptability

Standing still in competitive business landscapes is akin to moving backwards. To thrive amidst constant change, embracing innovation and cultivating adaptability are not just options, but necessities. By proactively seeking ways to evolve your offerings and operations, you can:

• Prepare for the future: Anticipate and adapt to evolving customer needs, technological advancements, and market trends.
• Gain a competitive edge: Differentiate your business from the competition by offering unique solutions and experiences.
• Attract top talent: Cultivate a culture of innovation that attracts creative and forward-thinking individuals.
• Maximize efficiency and productivity: Streamline operations and improve processes through technological advancements.

One example of a company leveraging innovation to empower businesses is DHL's use of AI in its My Global Trade Services (MyGTS) platform. This innovative solution enables small businesses to seamlessly access new markets by providing insights into trade regulations, customs requirements, and landed costs, simplifying the complexities of international trade.

Remember, business growth is a journey, not a destination. These ten strategies offer a roadmap for small businesses looking to take on the challenges and opportunities that lie ahead. Embrace each step of the process, stay adaptable, and continually assess your progress. By implementing these strategies thoughtfully, you’ll not only enhance your business’s resilience but also pave the way for sustainable success and long-term growth.

Stages of small business growth

Some of the notable stages of growth most companies will face as they embark on their enterprise journey are:    

Seed and development

This is the very early stage of your business idea. You’re probably spending most of your time doing market research and exploring whether there’s enough demand for your product/service to make it a viable source of income.  

Start-up

The exciting part – your business is officially open and beginning to attract customers! You’re having to learn quickly to overcome challenges like cash flow or within day-to-day operations. Adaptability is the key to survival.

Growth

By now, you may be generating a steady income and a loyal customer base. Breaking even is the main focus; to do that may require strategic hires, investing in new technologies, or improving efficiencies.

You may also consider partnering with bigger brands during this phase, a strategy which will give you access to a larger pool of customers, as well as invaluable support and guidance from trusted advisors.

Expansion

Once your business is profitable, it’s a good time to explore growth opportunities, such as developing new products or expanding into new markets. Tread carefully though – ensure goals are in line with your resources.

Maturity

With several successful years of the business behind you, you may be thinking about selling it. Or – if the entrepreneurial spirit in you is still thriving – introducing new expansion goals. 

Ready to grow your small business? Leverage DHL's solutions to support your growth strategies

From conducting competitor analysis and expanding product offerings to building a strong brand identity and embracing innovation, each strategy plays a crucial role in navigating the dynamic business landscape.

But remember, growth doesn't happen in a vacuum. To truly unlock your small business's full potential, you need the right tools and support. That's where DHL comes in.

With solutions like Everstream Analytics, you can gain real-time visibility into your supply chain, anticipate disruptions, and make informed decisions that minimize risk and maximize efficiency. And with My Global Trade Services, powered by AI, you can confidently explore new markets, access crucial trade information, and streamline your international shipping operations.

Don't let uncertainty hold your business back. Embrace the power of data-driven insights and strategic partnerships to propel your growth. Leverage DHL's solutions today and take your small business to the next level.