SA Franchise Warehouse

More shelf space means new markets and increased sales

The sustainable growth of a business means more than just having great products, but rather having access to more shelf space where your brand can attract consumers.  

Ravi Govender

Ravi Govender, Head of Small Enterprises at Standard Bank, says this is where most entrepreneurs make a mistake and lose the opportunity to keep their businesses on an upward growth trajectory.

Episode four of the Standard Bank ‘Think Big – Building Business Champions’ series highlighted that many successful businesses that have promising growth prospects often find it challenging to break into new markets, because their owners lack the required expertise to take their businesses to the next level. 

Even if your products are innovative and appealing to consumers, if they are not easily accessible, the prospects for growth can be bleak. The entrepreneur can become a victim of his/her own success, limiting opportunities for growth by overlooking the importance of capitalising on additional finance sources to open up new markets for the business. 

“At this stage the failure to sell some equity and take on partners or shareholders or additional debt to finance growth means stagnation for the business. Ultimately you create more opportunities for competitors who are happy to make sacrifices for future growth,” says Mr Govender. 

When a business is doing well and sales have reached a satisfactory level, the entrepreneur can then afford the luxury of taking time to review his/her growth strategy. Factors that should be considered include:

• Checking the name of your brand, its packaging and the overall appeal it has to customers. If necessary, look at refreshing packaging so that the product has more appeal. 
• Researching product markets and finding out where your potential customers are most likely to shop. Then, find out who the corporate buyers are and market your product to them so that you can potentially get space on their shelves. 
• Using the web to establish your brand. By having your own company page you can reach anyone using the internet. 
• Consulting professional marketers to get your products placed. 

Mr Govender says if you are not ready for this major step, consider hiring company representatives that can help you to achieve national sales and further gain access to larger chains for future growth.
“If you feel there is still enough room for major product sales within smaller outlets, use your company representatives to gain more access to these markets. Independent outlets will not only stock your products, but will also generally welcome any brochures and advertising material you may offer.”

“Once you have reviewed your growth strategy and have taken all factors into consideration, you will realise that your ambitions for accessing new markets will require a new source of finance. It pays to explore these opportunities as they could provide the impetus to grow the business. After all, if you are exploring new markets you have to be prepared to meet anticipated demand by growing production and manufacturing lines,” says Mr Govender. 

There is nothing worse or more destructive for a business than creating demand through new markets and then not having products available. Once retailers lose faith in your supply chain, they will simply stop ordering products and move on to the next available supplier. 

“If you do not meet your customers’ expectations, not even the best advertising, marketing and web campaigns will keep your business on track. Service is, and always will be, the criteria upon which you are most often judged,” says Mr Govender. 

‘Think Big’ episodes can be viewed on SABC 3 at 9:30 pm every Thursday evening until 18 September. The show is repeated at 4:30pm on the Sunday following the evening broadcast. You can also log on at www.standardbank.co.za/bizconnect to view the show.