New business ventures typically have lofty goals but relatively modest operations. Naturally, entrepreneurs want to see their operations and revenues grow and expand, ultimately catching up to the breadth of their initial vision.

Startup growth doesn’t happen by accident. Rather, it comes about as the result of careful strategic planning. The question is, what’s the best way to position your startup for lasting and sustainable growth?

Establishing a Strategy for Startup Growth

While no blueprint is guaranteed to work for all businesses, some best practices can help you move your startup toward greater commercial success. Here are a few key components of a successful startup growth strategy.

1) Set clear and measurable goals.

Before you pursue growth, it’s helpful to define the type of growth you’re looking for. Establishing clear metrics gives your business a target to aim for and allows you to measure your progress effectively.

Your goals for strategic startup growth can include anything from increasing revenues to building a bigger customer base to expanding into new markets or territories. Incorporating tools like dunning management software can help manage and reduce customer churn. Remember that the best business goals are specific, measurable, achievable, relevant, and time-bound (remember the acronym SMART).

2) Choose the most beneficial legal structure.

The legal structure you choose for your startup can make it easier or harder for you to grow. For most startups, the ideal configuration is the Limited Liability Company, or LLC. LLCs provide personal wealth protection, pass-through taxation, administrative flexibility, and relatively minimal regulatory burdens. All of these benefits are conducive to growth.

The specific steps for creating an LLC can vary depending on your state, so ensure you double-check state-specific guidelines. For example, knowing how to set up an LLC in California might be a bit different from knowing how to set one up in Texas or New York. Certainly, you’ll always need to secure a Registered Agent, claim an Employer Identification Number, and more.

3) Do extensive market research.

It’s tough to grow any business without first knowing its target customers. Market research is critical for learning customers’ needs, preferences, pain points, and buying habits.

One outcome of your market research should be the development of buyer personas, which essentially function as dossiers for your ideal consumers. These documents can guide product development and brand messaging, ensuring alignment with your actual buyers.

4) Be intentional about customer acquisition.

While retaining your current customer base is important, there’s no way to grow a business without bringing in new customers. Have a plan in place to drive customer acquisition. This plan may include any or all of the following pieces:

• Use digital marketing channels to attract and convert leads.
• Focus on providing exemplary customer service, making people want to do business with your company.
• Use blogging and other forms of content marketing to establish thought leadership, generating customer trust and goodwill.
• Implement a customer loyalty program to encourage your new customers to return for more!

5) Focus on brand building.

It’s natural for your marketing and sales teams to emphasize specific products and services, positioning them for success within the marketplace. However, it’s just as important to establish your brand’s distinguishing benefits, emphasizing why a customer might choose your company over the competition.

Some tips for brand-building include:

• Create an internal brand guide that you can use to stay on message in all your marketing efforts.
• Ensure consistency in all design choices, from colors to fonts to logos.
• Again, focus on thought leadership and content marketing to help emphasize your subject matter expertise.

6) Be wise in how you seek funding.

Ultimately, growing your business involves spending some money. If external funding is necessary to fuel your growth, explore financing options such as venture capital, angel investors, or crowdfunding. However, seek funding strategically and ensure alignment with your long-term growth objectives.

Also, remember that loans and lines of credit may be the most flexible option, and you’ll get the best terms if you’re registered as an LLC. In fact, without registering or incorporating, you may not have any viable business loan options at all.

7) Prioritize customer feedback.

Make sure you have a product marketing manager or some other role that continuously assesses customer experience and provides feedback from people who use your products and services. A continuous feedback loop ensures your business aligns with customer needs, preferences, and pain points.

Remember to seek feedback on the product itself and any friction involved in the sales process, product delivery/assembly, ongoing maintenance and upkeep, etc.

8) Ensure a robust data ecosystem.

Finally, remember to invest in actionable data and analytics that can keep you on track to meet your goals. This includes anything from sales dashboards to online traffic and lead generation reporting. Some important metrics include customer acquisition cost (CAC), lifetime value (CLV), and churn rate.

Ultimately, the right data ecosystem can help you to make informed decisions and optimize your growth strategies, enabling you to achieve scalable success for your startup.

Bottom Line

Startup growth strategy is paramount in determining their trajectory in the competitive business landscape. A well-defined growth strategy enables startups to capitalize on opportunities, expand their market presence, and achieve sustainable success. It also helps the business make wise decisions regarding market positioning, resource allocation, and beyond. As you consider ways to position your startup for lasting success, ensure you’re intentional in crafting a strategic growth plan.