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Business Stagnant? Look to the Growth Strategy

Frustrated by stagnant growth quarter after quarter? Is it becoming impossible to push your profits up any higher? Many small business owners experience a slump or less than desirable periods of growth at some point, and it can be understandably disheartening. If a growth strategy has not been implemented for a business, now, not tomorrow, is the time to do so.

A growth strategy doesn’t have to be overly complex. It simply needs to outline plans for future growth and what requirements need to be met in order to achieve the end goal. Factors that a suitable growth strategy may address include:

  • New products or services
  • Estimated growth of customer base
  • Projections for demand over X amount of years

For business owners who tend to be focused on the here and now, a growth strategy forces them to turn their attention to the future. Unfortunately, one aspect of the growth strategy that owners struggle with is coming up with the extra finances.

Even if some corners can be cut without effecting the quality of a final product or service, finding the necessary funds within a business’s reservoir is not always feasible. This is where investing can play a significant role. Most entrepreneurs meet with investors early in the days of their start-up, and there is no reason to shy away from investors when seeking new capital for growth. Initial investors who were impressed with how a business began might be happy to invest in new growth.

Those who are set on finding more internal sources of revenue without reducing quality of service may also want to consider adjusting price points. Other options include introducing new products or services that do not require a significant financial contribution but will fill a need or desire of the already existing customer base.

How MyYearbook’s Founders Ditched the Conventional Yearbook

Catherine Cook was only 14 years old when she came up with the idea for her popular social networking website, myYearbook. After moving just before starting high school, Catherine and her brother Dave decided to look through the school’s previous yearbooks to see if they could scope out potential new friends, but what they found was mostly empty and useless information. Realizing that the yearbook experience was seriously behind modern times, the two decided to create a website where high school students could gather.

The brother-sister duo followed the footsteps of their eldest sibling, Geoff, who, in 2002, sold off two different websites that he had founded while attending Harvard University. When Geoff learned about their start-up website, he stepped in as CEO and invested $250,000 of his own money.

The original website was basic in its structure, but, with some clever advertising and engaging content, they signed up 400 people in the first week. The siblings quickly began to introduce new and better features, thanks to an easy “in” they had with the users — namely, Catherine. She remained active and engaged on the website and listened to what the users wanted or thought needed to be improved, and, as a high school student herself, she had her own unique perspective of the website.

When Facebook began to rule the social networking world, myYearbook did not back away. Instead, it reinvented its message and focused on helping users make new friends, not connect with the ones that they already had. Recently, myYearbook merged with another social media site in a whopping $100 million deal.

It is clear that the Cook siblings have more than just a knack for the entrepreneurial mindset, and even with competition from Facebook and Twitter, myYearbook is still listed in the top 25 websites that receive the most traffic in the United States.

How to Turn Your Freelancing Gig into a Successful Business

Look just about anywhere on the Internet and you will likely find someone offering services as a freelance worker. While some freelancers are content to continue at the same level of success, others are not as satisfied with this path. There are actually many former freelancers who understood how to up their game and transform their small, freelancing service into a growing and thriving online business.

The gap between freelancers and entrepreneurs might seem too wide to bridge, but, for those dedicated to succeeding in online business, the distance is not far at all. By following a few relatively easy steps and adding in a big helping of hard work, a freelancer can transform his or her service into a successful business.

1. Consider the market

Has there been an increase in demand for work lately? Are there more clients than you are able to handle? The time might be right to expand.

2. Take care of the legalities

Most people can start freelancing without having to sign or register legal documentation, but if you plan to start hiring people, you will need to have the legal ability to do so. Consider consulting with other start-up owners or a knowledgeable attorney when completing this step.

3. Find your funding

Contact investors who are interested in individuals who have already built successful freelancing services and pitch your business. Make sure you already have your business plan and finance estimates prepared and ready to go.

4. Hire your team

You will still be wearing most of the hats around the virtual office, but having a few extra hands on deck can leave customers with a more satisfying experience.

5. Get the word out

Let your former freelance customers know that your services have expanded through a new business and consider offering one-time discounts for “returning” customers. Also, do not forget how important social media can be for advertising.

While it is certainly okay for freelancers to feel happy and comfortable with the freelance career that they have built for themselves, there is nothing standing in the way of those who desire more.

Think You Have What It Takes to Start a Start-Up?

Everyone is different, sure, but there are still some generalizations that are fairly safe to make. Gymnasts tend to be athletic, writers generally have a knack for words and CEOs typically have outstanding leadership skills.

Entrepreneurs are no exception.

Many entrepreneurs are fiercely determined and passionate, but it takes more than that to successfully build an online start-up. Do you have any of these common entrepreneurial traits?

Organized: Some entrepreneurs are innately organized while others are not. Both types of people can be equally successful when the latter understands the importance of good organization skills and makes an effort to change, which leads to our next point…

Adaptable: Having your business plan in order, a carefully organized calendar and your desk neatly arranged is no doubt hugely beneficial during the often hectic start-up time, but there is something to be said for the ability to deviate from the plan. An entrepreneur understands that there are times to stick to the plan and times to deviate from it.

Persistent: When first starting a business there are bound to be plenty of “NOs” and closed doors, but an entrepreneur does not abandon his or her idea that easily. The going may be tough, but entrepreneurs are tough and they keep going.

Realistic: Entrepreneurs often have to wear many different hats in the early stages of a start-up, but they also understand their own limitations. Whether they struggle with time commitments or handling finances, entrepreneurs know when to take on the burden themselves and when to ask for help.

Building a business from scratch is not for the lighthearted, and there is no ignoring or denying the amount of commitment that it takes, but most entrepreneurs have another thing in common — they are not afraid of a challenge.