We’ve all been in those meetings where growth-promoting ideas are discussed. Before you know it, an entirely new Growth Strategies for Service Firms has emerged, and everyone is ramping up in the hopes of seeing the benefits sooner. There is only one problem: Firms do not take the time to analyze the risks and determine the probability that a new growth strategy will actually succeed, allowing excitement to take its place.
However, there are several strategies that have proven to work from time to time for growing a company. While you will find that with every approach there will be some risk, but following these strategies can deliver new growth without making dramatic changes to your process. Depending on your situation, one strategy may be more appropriate for your firm than another.
Panorama India Consultancy, is the best business consultancy in Haldwani, Uttarakhand. We have helped many firms to grow their businesses in and around the city. We have experienced the common problems firms face while planning their growth strategies. Today, we will discuss five of the most common professional growth strategies for firms.
Increase Market Penetration
This approach involves providing more services to the same customer. It’s a relatively low-risk strategy that can be achieved fairly easily, as it doesn’t require introducing anything new. For example, you have an accounting firm that offers auditing services, but few of your clients know about it. By making your existing customers aware of your other services, your firm can increase your relevance and generate more revenue from a market you already touch.
Now, it’s important to know that even this conservative growth strategy is not without risk. When you depend on a small pool of customers, you cannot afford to lose many. Also, convincing your customers to purchase additional services can be a challenge. Most customers are unaware of a provider’s full range of services. In other words, customers tend to look for other providers for additional services – the service you offer – because they don’t associate those services with your company in their minds.
Develop New Markets
Another relatively low-risk strategy is to find new markets for your existing services. This is a common growth strategy in the professional service industry as many companies seek to deploy their services to as many audiences as possible.
While the concept “more buyers equals more sales” may seem logical, it also has its potential costs. It can be time-consuming and expensive to educate and develop new audiences, so your business runs the risk of underinvesting in potentially interesting markets while overinvesting in those with fewer opportunities.
You can approach new markets thoughtfully, by effective growth strategy. For example – a law firm currently provides its services to small businesses, but a new big manufacturing company is relocating to that firm’s area. So, a large corporate client could be a beneficial growth opportunity.
Develop Alternative Distribution Channels
This strategy is uncommon in professional services, but it can still work. By partnering with complementary – but not competing – service companies, your company can expand its reach by taking advantage of alternative distribution channels. For example, a company may partner with a trade association to obtain its membership rights. Or a law firm partner could partner with an accounting firm to exchange referrals and even market to each other.
This growth strategy is quite rare in professional services as the biggest risk involves finding the right fit. Developing alternative channels can be expensive, so it’s important to consider whether it’s worth the investment – especially since choosing an alternative distribution channel could damage your brand. you if it raises credibility problems.
Develop New Services
This is a type of growth strategy in which your firm develops an entirely new service to address an underserved market. Most professional services firms have preferred to adopt this strategy. But as a market strategy, a firm has to think bigger. For example, an accounting firm may look beyond the traditional tax offering to offer a new service offering, such as internet security services or financial planning.
First, developing a new service requires a significant investment of time that can distract significant attention from the services you already offer. By expanding your line of service, your firm also risks becoming an all-knowing, especially meaningless generalist.
It’s also important to make sure that new services fit your brand, don’t cause conflicts of interest, and don’t alienate your referral resources and is an important task among all other Growth Strategies for Service Firms.
New Services to New Markets
Offering new services to new markets is one of the riskiest strategies of all. If you are thinking of offering new services you will need a new strategy for stepping into a new market. There are not only risks, there are also many potential opportunities. Take for example – A consumer research company that had developed a software program for their established clients. They soon realized that the software they have developed can also be used in the medical research field. So, they created a new firm that offered services to the medical research field. This allowed them to take advantage of the opportunity without harming their brand and confusing their current client base.
The above-mentioned growth strategies possess some kind of market risk. So it totally depends on you and how you assess the situation. Like you need to think yourself about what will be a bigger risk to you – expanding new markets or adding new services in your existing market? Before you move to a new strategy you should gather insights so that you can understand the risks better. With the right strategy, you can find the right buyers, brands, and goals.
We at Panorama India Consultancy, Haldwani think that these are some of the Growth Strategies for professional service firms. If you are looking for consultancy services in Haldwani you can visit our website and contact us.
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