To stay relevant and competitive, your business has to grow. But planning for the future and putting business growth strategies into action can be challenging.
Following the uncertainty of the past couple of years (thanks to inflation and interest rate adjustments aimed at controlling it), many business owners are looking for ways to stay flexible while also seizing new opportunities for expansion. To stay ahead of the pack, consider these strategies to set yourself up for business growth in 2025.
Key Points
• To grow your business, you first need a well-defined business strategy, which provides a roadmap for growth by helping businesses identify target markets, allocate resources effectively, and set measurable goals.
• Market research also plays a role in business growth, as it helps businesses understand customer preferences and industry trends, reducing risks.
• Growing a business requires both attracting new customers and maintaining existing ones. Digital and traditional marketing strategies help expand reach, while customer retention efforts foster long-term success.
• Business can grow organically, but sometimes a small business loan or grant provides the capital a business needs to scale and pursue more opportunities.
• Regularly measuring key performance indicators, such as revenue and customer retention, helps businesses refine strategies and achieve continuous growth.
Develop a Clear Business Strategy
Developing a clear business strategy helps you grow a small business because it provides a roadmap for achieving your goals. A well-defined strategy helps you identify your target market, understand customer needs, and allocate resources effectively.
With a solid strategy, you can set measurable milestones, track progress, and adjust as necessary to stay competitive in your industry. To develop a business strategy:
• Define your vision and goals: Start by outlining your long-term vision and setting specific, measurable, achievable, relevant, and time-bound (SMART) goals to guide your business decisions.
• Understand your market: Conduct thorough market research to identify your target audience, competitors, and industry trends, helping you position your business effectively.
• Analyze strengths and weaknesses: Perform a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to understand your business’s internal and external factors.
• Create an action plan: Break down your goals into actionable steps, assign responsibilities, and establish timelines to ensure accountability and progress.
• Monitor and adjust: Regularly review your strategy’s performance, track key metrics, and be prepared to adapt to changing market conditions or unforeseen challenges.
Recommended: How Much Does It Cost to Start a Business?
Research Your Market
Researching your market is crucial for small business growth because it provides valuable insights into your target audience and their needs. By understanding customer preferences, buying behaviors, and pain points, you can tailor your products or services to meet demand more effectively.
Whether you’re a startup business or you’ve been in the industry for decades, market research minimizes risks by equipping you with data to make informed decisions. It helps you determine optimal pricing, choose effective marketing channels, and anticipate challenges in the competitive landscape.
💡 Recommended: Stages of Business Growth
Financial Management and Funding
Effective financial management and securing adequate funding are cornerstones for growing a successful business. Sound financial management ensures that resources are allocated efficiently, helping you track income, manage expenses, and maintain profitability. It allows you to create detailed budgets, forecast future financial performance, and allocate funds strategically toward areas with the highest potential for growth.
Securing proper funding is equally vital for scaling operations, investing in new technologies, or launching marketing initiatives. Whether through small business loans, venture capital, or grants, access to funding provides the capital needed to seize growth opportunities and expand your business.
Small Business Loans
Different types of small business loans allow businesses to hire more employees, increase inventory, and enhance marketing efforts. Loans can also enable businesses to address cash flow challenges or take advantage of time-sensitive opportunities, such as acquiring another company or launching a new product.
Grants
Small business grants can help small businesses grow by providing funding that doesn’t need to be repaid, allowing businesses to invest in expansion, equipment, or marketing. Grants can also support research, innovation, or community-focused projects, helping businesses achieve growth goals without increasing debt.
Recommended: 20 Small Business Grants, Programs, and Checklists
Acquiring Customers
One of the best ways to grow your business is by getting more customers. Getting more customers increases revenue, allowing your business to expand, invest in new products or services, and improve operations. You can acquire more customers through digital marketing and traditional marketing, and also by retaining the customers you currently have.
Digital Marketing
In today’s digital age, businesses must establish a strong online presence to attract customers. Digital marketing strategies like search engine optimization (SEO), social media marketing, and paid advertising can significantly expand a business’s reach.
Traditional Marketing
While digital strategies are essential, traditional marketing methods still play a valuable role in customer acquisition. Print advertisements, direct mail campaigns, networking events, and sponsorships can help businesses connect with local communities and establish credibility.
Retention
Acquiring customers is only the first step; keeping them engaged ensures long-term business success. Customer retention strategies include personalized communication, loyalty programs, and excellent customer service.
Recommended: What Are the 5 Stages of Business Growth?
Sales Techniques and Strategies
A well-structured approach to sales can improve conversion rates, enhance customer relationships, and maximize revenue. Tailoring your sales pitch to address customer pain points and offering solutions makes your product or service more appealing. Below are some key strategies to improve your sales approach:
• Build rapport: Establish trust with customers by actively listening to their concerns and showing genuine interest in their needs.
• Value-based selling: Focus on the benefits your product or service offers rather than just its features. Explain how it solves problems or improves their life.
• Upselling and cross-selling: Encourage customers to buy complementary or upgraded products to increase the value of each sale.
• Follow-up: Stay engaged with potential and existing customers through consistent communication to nurture relationships and secure repeat business.
Combining these techniques with a clear understanding of your sales process ensures better alignment with customer expectations, ultimately boosting growth and profitability.
Recommended: Business Line of Credit
Operational Efficiency and Scaling
Optimizing operations — including streamlining processes, reducing waste, and improving productivity — can lower costs and increase profitability. Implementing automation tools, such as customer relationship management (CRM) systems and inventory management software, helps businesses scale efficiently.
As demand grows, businesses should focus on hiring and training employees to maintain quality while expanding. Outsourcing non-core tasks can also free up resources for strategic growth.
Recommended: How to Pay Employees When Starting a Business
Innovation and Adaptation
Innovation and adaptation are key to staying competitive and driving business growth. Businesses must continuously evolve by introducing new products, improving services, and adopting emerging technologies. Keeping up with industry trends and customer preferences ensures long-term success.
Recommended: How to Write a Business Plan
Legal and Compliance Considerations
It’s important that your business operates within legal and regulatory guidelines. Compliance with local, state, and federal laws helps prevent fines, lawsuits, and reputational damage. Business owners should stay informed about industry-specific regulations, tax obligations, and employment laws to avoid potential legal issues.
Properly structuring your business — whether as an LLC, corporation, or sole proprietorship — affects liability and taxation. Securing necessary licenses and permits ensures your operations remain legitimate.
Regular legal audits and professional guidance from an attorney can help maintain compliance.
Performance Measurement and Growth
Measuring performance and growth can help you understand how well your business is progressing and help identify areas that need improvement. Tracking revenue, customer retention, and conversion rates helps you make data-driven decisions. Without measurement, it’s difficult to know what strategies are working and where adjustments are needed.
Recommended: Small Business Working Capital Loans
The Takeaway
There’s no one universal approach to finding success and business growth. Good strategies for how to grow a small business will likely differ from those that work for a mid-size or large company. It’s important to determine which strategies align with your resources, target audience, type of business, and goals.
As your business evolves, keep in mind that what worked to get it off the ground may not work as well for your next stage of growth. Referring back to your business plan can help you track progress and make changes as needed.
If you’re seeking financing for your business, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your business in minutes.
FAQ
How much money do I need to start growing my small business?
Some businesses can grow with a few thousand dollars, while others may require significant investment. Creating a detailed budget and exploring funding options can help determine your specific financial needs.
What are the most effective marketing strategies for small businesses with limited budgets?
Small businesses with limited budgets can use cost-effective marketing strategies like social media marketing, content marketing, email campaigns, and local SEO. Networking, word-of-mouth referrals, and partnerships also help.
How can I secure funding if I have a limited credit history?
If you have limited credit history, you can secure funding through microloans, crowdfunding, grants, or business credit cards. Consider alternative lenders, peer-to-peer lending, or seeking investors. Building business credit, offering collateral, or getting a cosigner can also improve approval chances for loans from banks or credit unions.
When is the right time to hire my first employee?
The right time to hire your first employee is when your workload becomes overwhelming, demand exceeds your capacity, or growth opportunities are being missed. Ensure you have stable revenue, a clear job role, and the financial ability to cover wages, taxes, and benefits before making the commitment.
How do I know if my business is ready to scale?
Your business is ready to scale if you have consistent revenue growth, strong customer demand, efficient operations, and the infrastructure to handle expansion. A proven business model, reliable cash flow, and the ability to hire and manage more employees are also key indicators that scaling is a viable option.
Photo credit: iStock/SeventyFour
SoFi's marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOSMB-Q125-010