Sunday, April 3, 2011

Vertical and Horizontal Business Growth Strategies

When growing your business you need to decide on a growth strategy.

Here are two examples:

1) Vertical growth - focusing on current customers to make additional purchases of your product or services. Develop new products or services to appeal to existing customer base.

2) Horizontal growth - finding new customers to buy existing products or services. Expand the geographic reach of your business as well as sell to different customers in same area.

Don't limit yourself. You can combine both strategies. If you are a smaller firm, concentrate on one at a time.

Communication Tip - when communicating to your target market - U.S. Mail postage, envelope, paper and labor on average will cost you $1.35 per person, an email about 5 cents per person. 
 
Baby boomers are the fastest growing segment of entrepreneurs in the United States. 

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