The Business Builder

Leverage Your Business for Growth

by Linda Rink, President of RINK Consulting

Growing your business can be done in several ways: by adding customers, new products or services, through acquisitions or by expanding into new geographic regions.
All of these activities can be risky and expensive.

How can you reduce your risk and your costs, plus increase your chances of success?
One important strategy is to leverage what you already have!

What does leveraging mean?
Simply put, leveraging means capitalizing on a strategic advantage to achieve what you want. Your business already has many assets. Here are six ways to leverage them:

1. Leverage your current customers.
Current customers can be a great source of information and referrals. After all, who knows you and your company better than they do?

Survey your current customers. Ask them what other products or services they would like to receive from you. Or give them some suggestions and see how they react.
Always ask for referrals. This is the easiest and most powerful way to gain new customers, because your credibility is already established.

2. Leverage what your company has in- house.

What expertise do you already have in-house that you can tap for new services?
What new products or services can you implement quickly, easily and at low cost? (Hint: think line extensions, product upgrades, and add-ons.)
Which of these can be delivered to your customers in the same way as your existing products (so you don't have to change your infrastructure or distribution system)?

Can your Customer Service Department handle these new products without adding staff or requiring additional training?
Can you incorporate the new items into your current advertising and promotions?
Can your current sales people handle them?

3. Leverage your competitors.
Research what your competitors are offering. Evaluate their products and services with yours within the context of what your company stands for and what it can do.

Do these products lie within your current area of expertise (your “core competencies”)?
Do they fit with your company’s image and/or reason for being (your “mission”)?
Do they help you reach your goals for the business (where you want to be in five years)?

4. Leverage your company’s image and position in the marketplace.
This is where you can differentiate yourself from your competition. Conduct research with your target audience to identify product areas that tie into your positioning and brand image. Then, as you flesh out the details, make sure you stamp your new offerings with your company’s unique identity.

5. Leverage with subcontractors.
Subcontracting is one of the easiest ways to expand your services without investing in new staff or training. But quality control is very important here. Since your clients won’t know your subcontractors, it will be your reputation, not the subcontractor’s, that is on the line.

6. Leverage with a partner.
Partnering with a complementary business is a big way for you to grow your business in many ways – expanded customer base, products, geography. But it goes without saying that you must pick your partners carefully. There has to be a good fit in terms of business practices, company image and products – not to mention compatibility with key management personalities and philosophies.

Growing your business often means expanding the scope of what you offer to current and new customers.

Do your homework first!

Make sure all of your products and services – current and planned -- are aligned with your business identity and goals.
Do some research to determine how big the demand is for your new products.
Then see how you can leverage your existing assets to minimize risks and boost your success.