What Is a Growth Strategy, and How Can You Build One?

Bigger, better, more profitable—for most business owners, it’s not just a dream. It’s the trio of goals you’ll need to prepare your company for long-term future success. To make these goals a reality, however, you’ll need to start thinking about your business’s next steps. 

This is where your business growth strategy steps in. From Fortune 500 companies to your favorite gelato place on the corner, businesses need to adapt to changing markets, scale up to meet demand, and plan for whatever challenges lie ahead.

*Note: Brands discussed in this post were found during our online research for this article.

What is a growth strategy?

A growth strategy is a plan of action that helps you scale up your business, expand your market share, and prepare for future challenges and needs. This could be through developing new products or markets or looking for new opportunities in existing markets.

In business terms, there are four main types of growth strategies:

• Market penetration: Entering and dominating an existing market with a new product—think Uber turning the market for taxis and cabs on its head.
  
  
• Market development: Creating a new market for an existing product or service—consider how far Nike has come from its origins as a sportswear brand to becoming a lifestyle staple.
  
  
• Product development: Broadening the scope of the product or services you already offer—there’s no better example than Netflix here. Recognizing the potential of streaming, the DVD rental company pivoted almost entirely to an on-demand entertainment model, eventually creating its own content.
  
  
• Diversification: Growing your business by entering new markets with a new product and doing something completely new—Amazon is a classic example. Alongside selling books, the behemoth retailer has an impressive reach into just about everything else. 

But how do you determine which growth strategy is right for your business? You align your growth strategy with your business goals. Before you start diving into growth strategies, identify and define what success looks like for your business. Is it:

• Increasing revenue?
  
  
• Entering new markets?
  
  
• Expanding product offerings?
  
  
• Establishing market dominance? 

From there, you can determine which growth strategies will help you reach your goals best. 

Why is having a growth strategy important?

While you may be eager to get your business off the ground, there are some sobering statistics for budding entrepreneurs to consider. 

Over 20% of businesses fail within their first year, and for those who make it past that first hurdle, the fail rate continues to increase. By the 10-year mark, around 65% of businesses, on average, shut their doors for good.  

But there is a silver lining.

While these numbers may seem discouraging at first, don’t despair! Just look to the future and keep the bigger picture in mind. Developing your business growth strategy means thinking long-term—something that will help prepare you for whatever pitfalls and problems that may cross your path. 

An effective growth strategy helps you avoid spreading yourself too thin and losing sight of the bigger picture by delivering:

• Improved decision-making: Your growth strategy acts as a roadmap for your business. It gives you clear direction and objectives to guide your decision-making process.
  
  
• Better resource allocation: Knowing where you want your business to go keeps you from wasting time, money, and effort on activities that don’t align with your overall strategy.
  
  
• Increased competitiveness: A growth strategy encourages you to think outside the box by continuously developing new products, entering new markets, or expanding your reach. 

Various types of business growth can occur as a result of successful growth strategies, including:

• Organic growth: Growing your business through increased sales, improved customer retention, and expanding market share.
  
  
• Internal growth: Expanding your business from within, such as opening new locations or hiring more employees.
  
  
• Market expansion through acquisition: Acquiring other businesses to expand and enter new markets.
  
  
• Strategic partnerships: Collaborating with other businesses or organizations to increase market reach and revenue growth. 

Key components of a successful growth strategy

A successful growth strategy is more than just a list of goals and ideas. It requires a well-thought-out plan with clear objectives, actionable steps, and continuous evaluation. Here are some key components of a successful growth strategy.

Market research

Market research empowers you to understand your target audience, market trends, and customer needs. It helps you answer questions like:

• Who is your target audience? What are their demographics, behaviors, and interests?
  
  
• What are the current market trends, and how can your business capitalize on them? Is there a market gap that your product can fill?
  
  
• What are the pain points and needs of your potential customers? How can your product address those needs and stand out from competitors? 

From this research, you can identify opportunities for growth and tailor your strategies accordingly.

Goal setting

You wouldn’t set out on a road trip without a destination in mind—likewise, you shouldn’t embark on a business growth journey without clear goals. Setting specific, measurable, attainable, relevant, and time-bound (SMART) goals gives direction and purpose to your growth efforts.   

Some examples of growth goals may include:

• Increasing market share by 15% within the next year through targeted marketing campaigns and improved customer retention.
  
  
• Boosting sales by 20% in the next quarter through product updates and a new pricing strategy.
  
  
• Expanding into new international markets within the next two years by forming strategic partnerships based on in-depth market research.

There are many more possibilities, but the key is to set goals that align with your overall business objectives and are achievable within a specific timeline. Regularly revisit and adjust your goals as your business grows and evolves. 

Competitive analysis

A competitive analysis involves evaluating your competitors and their strategies to understand the landscape of your industry and identify potential opportunities and threats. The goal is to answer questions like:

• What are your competitors’ strengths and weaknesses? 
  
  
• What strategies have they used to achieve growth? Can you adapt or improve upon these strategies?
  
  
• Are there any potential threats to your business, such as emerging competitors or changing market trends? 

Conducting a thorough competitive analysis can help you identify gaps in the market, potential partnerships or collaborations, and areas for improvement in your business.

Value proposition

A value proposition is a statement that defines the unique benefits and value your product or service provides to customers. It differentiates your business from competitors by highlighting what makes your products or services stand out in the market. 

To create a strong value proposition, consider the following points:

• What problem does your product or service solve for customers?
  
  
• How is it different from other solutions in the market?
  
  
• What specific benefits or results can customers expect from using your product or service?
  
  
• How does it align with your target audience’s needs and values?

Here are two examples of strong value propositions:

• Apple iOS 15: “In Touch. In the Moment.” The simple yet powerful statement highlights the seamless and intuitive user experience of iOS 15, empowering users to feel connected and present in the moment.
  
  
• Airbnb: “Live like a local.” By emphasizing its authentic, immersive experiences, Airbnb sets itself apart from traditional hotels and appeals to travelers seeking a more unique and personalized stay. 

Action plan

The best and most successful growth strategies have a clear action plan to guide their implementation. Your action plan should include:

• Specific tasks and timelines: What needs to be done, by whom, and by when? 
  
  
• Resources and budget: What resources (for example financial and human) do you need to execute the plan effectively? How much will it cost?
  
  
• Prioritization: Identify which tasks have the most significant impact on your growth goals and prioritize them accordingly. Consider the feasibility of each task and focus on those that are realistic and achievable within the given timeframe.
  
  
• Evaluation and adaptation: Regularly evaluate the progress of your action plan and make adjustments as needed. Don’t be afraid to pivot or change course if a particular strategy or tactic isn’t working.

As your business evolves, your action plan should adapt to reflect new opportunities and challenges. For instance, incorporating QR Codes in your digital marketing strategy can help you generate brand awareness as you enter a new market.

How QR Codes can help a business growth strategy

When marketing new products or services or advertising your brand’s pivot to a new market, QR Codes can help you implement your market growth strategy through:

Comprehensive branding

You can fully customize QR Codes to match the overall aesthetics of your business or brand. Custom company colors, adding a logo or CTA, or using a QR Code frame can all help QR Codes blend in with your message. 

This consistency across different platforms and marketing materials helps build a comprehensive brand presence, solidifying your brand identity and recognition.

PRO Tip: For some tips on designing the perfect custom code for your brand, take a look at our guide to different QR Code styles.

QR Code Generator’s customization software.

Print campaigns connected to digital content

If your business is diving deep into product development for its growth strategy, QR Codes could be the best way to showcase your new offering to the public.

There are a plethora of QR Codes that you can use to enrich marketing campaigns with digital media, including codes for videos, images, events, review forms, landing pages, PDFs, and more. 

If you need to change the digital material your QR Code links to, Dynamic QR Codes allow you to edit the destination without changing the printed QR Code itself. As a result, you can keep the same QR Code on your marketing material throughout the entire product development phase and beyond. 

Easy marketing campaign tracking

For marketers, Dynamic QR Codes are a particularly versatile choice for tracking the success of a new campaign, product launch, or pivot.

With the Dynamic QR Code, you can access data like location by city and country, unique vs. total scans, time scanned, and even the operating device used. 

When you combine these metrics with QR Code tracking, you can see where your campaign or product has the most impact. With this information, you can determine which marketing channels work best for your growth strategy and adjust future campaigns accordingly.

Demo version of QR Code tracking with QR Code Generator.

Calculable ROI for print marketing

Calculating a print campaign’s ROI (return on investment) is usually more guesswork than an exact science, but with QR Codes, that becomes a thing of the past. 

With the tracking data and metrics you can access from Dynamic QR Codes, you can see exactly how your intended audience reacts to your campaigns. Use this information to manage your budget and reiterate future campaigns.

A custom App QR Code in a magazine.

Scaled-up internal company processes

As your business grows, you’ll find that your company’s needs will change, too. You may need to create QR Codes in bulk for things like name tags, stock, or technical product documentation. 

You can use Static QR Codes for all sorts of processes. Plus, you can create Static QR Codes in large batches using a QR Code API.

For instance, you could print out your company’s assets with a QR Code linking to the item’s documentation. Employees can easily access the correct information, making internal processes more efficient.

An example of an ID badge with a QR Code

Increased customer engagement

Linking QR Codes to interactive content like surveys, reviews, or polls is a great way to increase customer engagement with your brand. With a quick scan, customers can easily provide feedback on your latest products or services, giving you valuable insights into their preferences and needs.

Moreover, you can use QR Codes to collect data from your customer base, such as email addresses, phone numbers, or social media profiles. You can then use this data to personalize marketing campaigns that resonate with your target audience, further strengthening their connection to your brand.

Additionally, QR Codes can incentivize engagement by delivering exclusive discounts, promotions, or loyalty rewards. This not only drives customer interaction but also encourages repeat business, ultimately contributing to the growth of your business and your bottom line.

Build a clear path to business growth with QR Code Generator PRO

A growth strategy is your blueprint to achieve long-term success for your business. It outlines the steps and resources needed to increase revenue, expand market share, reach new customers, and solidify your brand presence. However, implementing a growth strategy can be complex and overwhelming without the right growth hacking tools.

QR Codes offer a simple and efficient solution to support your growth strategy. From print campaigns to internal processes and customer engagement, QR Codes can streamline and enhance various aspects of your business: better branding, calculable ROI, more engagement, and beyond. 

With QR Code Generator PRO, you get access to advanced features, such as Dynamic QR Codes and campaign tracking, to help you optimize your growth strategy. 

Sign up for QR Code Generator PRO today and watch your business grow.