Growing a small business is one of the biggest challenges for any budding entrepreneur. The background check industry has lots of competition and many other firms trying to win your clients’ business. With a few simple strategies, you can create a successful growth model to help your company grow this year and in the years to come.
The cost of great technology has been reduced dramatically. Where before you had to build it, now you can buy it. With all the third party platforms like deverus, Tazworks and Accio Data, with minimal up-front investment, you can have the same technology, process, automation and supply chain management capabilities as many of the top 10 background check companies. This can not be overstated. Invest in a platform and instantly in the case of deverus, you’ll have a cutting-edge platform with 12 developers, UX experts, an integration department as well as a marketing team. How can you beat that? The result will be speed to market, more check boxes completed on RFPs and a technology team that can actually help you grow.
If your background check company is only focussed on smaller customers, you miss the “big fish” opportunities in the marketplace. Large companies, NGOs, and government organizations can offer a big bump in your sales. It takes a concerted effort to write good proposals and submit your bids or RFPs (request-for-proposal), but the rewards are well worth it. Getting a big institutional client can be a big win for your business.
Take a page out of the “big-business playbook” and consider a partnership with another firm to achieve your growth goals. Acquisitions and mergers are an effective way to snap up some extra market share while eliminating some of your competition. If you can find efficiencies and “synergy” through a merger or acquisition, it’s often a good strategy to build up your business beyond what’s possible with organic growth alone. Remember to keep your transaction costs low, and be sure to use a good corporate lawyer to oversee any purchases or partnerships.
If your background check company only focuses on one or two markets, you might miss other big opportunities to grow your business. Perform a simple analysis of your potential customers and brainstorm new markets with your staff. If you only focus on the legal community, perhaps it’s time to look at HR departments (or vice-versa). It helps to learn about basic marketing strategies like “segment, target, position” to work through your potential new markets. Be creative! New markets could be different industries, different geography, or moving your business online.
One of most tried-and-true growth strategies for any business is the uses of sales incentives to drive results and grow your company. If your sales force lacks motivation and struggles to meet their goals, it might be time to look at your compensation structure. Motivated salespeople are unstoppable given the right incentives and payment structure. There are lots of free resources online to help you set up the proper sales incentives to drive results and reward hard workers.
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