Starting a new business is an exciting venture and many people are interested in how to run one successfully.

The harsh reality is that around one in five small businesses fail within their first year. Expansion and profitability are determined by the strategies put in place from the start, no matter what business you choose to run. 

It’s essential to have a clear and actionable plan for growth if you want the best chance at profitability. Here are five strategies emerging entrepreneurs should keep in mind to give their business the best chance of growth: 

Do Your Market Research 

Understanding your market can increase your penetration and this is critical for long-term success. Researching your competitors and consumer trends can help you identify any gaps in the market and develop strategies on how your business can fill them. 

Emphasizing market penetration will help improve public perception of your brand. Consumers are willing to pay top prices to businesses that differentiate themselves from the competition.

Focus on Customer Retention 

While increasing profitability and growth is a priority, customer loyalty and retention is the key to success for many reasons. Convincing a customer to return to your business again is far easier than attracting new ones and they can act as a good source of word-of-mouth advertising. 

Customer retention strategies like loyalty discounts provide positive and empowering sales experiences that display your investment in their backing. The more personalised the customer experience, the more likely they are to come back for repeat business. 

Build Strategic Partnerships 

You can widen your audience by making strategic partnerships with other small businesses. Finding a complementary business ensures that you have access to a new client base that will find your product or service useful. 

Building partnerships with experts also gives you access to previously untapped wisdom or skills. For example, partnering with specialist accounting services keeps your finances secure but also provides the opportunity to develop a new product. 

Participate in Networking 

If you’re looking to build your brand visibility, networking events are a great way to go. These provide great opportunities to meet potential investors and generate interest in your product. 

Recognition is often one of the biggest challenges for start-up businesses but face-to-face conversations can build trust and begin the foundation for a future relationship. 

Diversify Your Service Offerings 

Once you have success selling your primary service or product, you can start thinking about branching into new markets. You can leverage global platforms to promote your products or open new business locations. 

You can also find different ways to offer existing services, through subscriptions or bundles.