Is the market you are targeting niche, or not at all? And can you answer the request? So many questions to ask when it comes time to adopt the best strategy to ensure the growth of your business.
When Alexandre Boucherot co-founded the Ulule sociofinancing platform in 2010, he already saw great things for his company: “We were convinced that it would have an international vocation,” says the co-founder and CEO.
Today available in 6 languages, Ulule has welcomed more than 25,000 projects in 7 years. And its expansion continues, with the opening in 2017 of its offices in Barcelona and Rome.
Ulule relies on its personalized support and the impressive success rate of its projects (67%) to stand out in the large crowdfunding market.
The size of the targeted market is precisely one of the main parameters to consider when thinking about a growth strategy. The resources available to the company is another.
Here are four possible scenarios.
The mouse: big market, small resources
With modest means, have you developed a product or service that is so popular that you can not meet the demand? Your business is then in the same situation as a mouse in a grain silo: your ability to take advantage of what is available to you is limited by your small size.
In this situation, you have to increase your resources.
On the one hand, human resources: it’s about hiring more staff or hiring subcontractors. On the other hand, technical resources: to meet the demand, it may be necessary to invest in new tools, computer equipment or, depending on the sector of activity, more efficient machines.
The gazelle: big market, great resources
Your business is growing rapidly and sustainably? It enjoys the technical, human and financial means to continue its deployment in large markets? It is therefore part of the (rare) gazelles, which travel with speed and agility the vast expanses of the savannah.
Cirque du Soleil, which employs over 8,000 people around the world, 23 years after its humble beginnings, is the perfect example.
The danger here is to sit on one’s laurels, whereas one must rather stay the course on growth. By developing new markets or making acquisitions, for example.
The goldfish: small market, small resources
If your business is growing at a steady pace, but modest – because its products meet a need, for example – you have to go into development mode.
This was done by the British company Media Displays, when it applied to bicycles the technology of diffusion of video advertisements that it had developed for trucks.
The strategy is therefore to diversify sources of income, particularly by developing new products or services that enrich the company’s offer … in the hope of increasing the size of its market!
Hippopotamus: small market, great resources
Your company has impressive financial resources that have allowed it to massively hire and equip itself with state-of-the-art equipment, but its growth is undermined by a market that has proved to be rather limited in the end?
It will probably cut into fat. It could mean focusing on the most profitable portion of your business.
Another avenue would be to develop new markets to better utilize the resources you have.