So much of business language is centred around growth, implying that bigger is always better and that real business is business is that only getting bigger. However, this narrative can have an excluding effect for micro businesses. Although a micro business might have strong ambitions to get bigger, many may just want to keep evolving, improving or building a business that brings income, meaning and joy.
So how can we build a business in a strategic and simple framework that helps us develop a step by step approach that can be managed with limited time, budgets & people power?
When working with many businesses, I like the Ansoff Matrix - an academic busness model that can be brilliantly adapted to suit micro businesses. This simple grid or framework gives the user the chance to unfold where business building can happen, how it might happen and in what order! It can be used as a planning tool to work through to provide a strategic approach to what you might want to do next. You can explore and price out options, understand what resources you need and potentially who can help you.
Here's how to use the matrix with some top tips on things to consider:
Start at the beginning (bottom left square) and think about 'market penetration' - i.e. what could you do to simply sell more of your existing products or services to your existing customer base? Think about improving marketing, developing customer journey, refreshing your website, asking for reviews and developing offers.
Think about selling more of your existing products and services to a new customer market or type (top left square). You may feel that you've saturated your existing market but want to try 'market development'. Think about who else might like what you do that don't particularly buy yet. Think referral schemes, email sign ups, introductory offers, reviews & case studies, new marketing content & customer research.
What about developing new products or services to your existing loyal customer base (bottom right square). Perhaps they love your brand but it's time to keep them interested for the next season, or refresh your offer? Think about what they need, what are trends, how their experiences are changing whle matching these things with your skills and knowledge. You may even decide to develop your knowledge or learn new skills through which you can develop something new.
The last square is often the last option (although there's nothing to stop you diving in!) which is about innovation. The reason this is often the last option, is because it might be the most expensive in time, resources & risk. However, think about what your business could develop to attract a whole new set of customers? How could you excite or inspire with something brand new for people who are yet to know you.
Remember the Ansoff Matrix isn't about doing all the things in one go. In fact you may never operate in the top right square but rotate around the other 3 squares, step by step building your business in stages, with less risk and is a way that you can manage strategically.
I'm going to add this topic to the Forum inside Simply Club if you want to share your own business development ideas or ask for help and ideas.
This is really helpful Em - thank you