7 business growth strategies for small and mid-size businesses

If you’re running a small or mid-sized enterprise (SME), you know firsthand the importance of having the right business growth strategies.

The sheer volume of challenges you’re faced with daily can be overwhelming: tight budgets, uncertain markets, fierce competition, limited resources, and the list goes on.

Thankfully, there’s also a list designed to help combat some of these challenges, and it’s filled with proven strategies to help small and mid-market leaders stay ahead.

Each of the business growth strategies we help our clients navigate daily focuses on the following:

Let’s start with efficiency.

Do more with less. It’s a mantra every SME leader knows well.

Maximizing efficiency within your business is critical, and thanks to continual advancements in automation and smart technologies, it’s easier than it’s ever been. Automation options and AI-driven tools help reduce the time-consuming nature of manual work and rote tasks, freeing up space and mental clarity for employees to focus on the important work they were hired for in the first place.

Recent research from McKinsey found that AI and other technologies have the potential to automate work activities that currently consume 60% to 70% of employees’ time.

Consider the reduced production costs those kinds of numbers could have on a mid-size manufacturing company, simply by automating its inventory management system.

This one should go without saying, yet so many small and mid-market businesses treat their primary digital channels like an afterthought. Your digital presence should always be baked into your business transformation plan.

When putting some muscle behind your brand, always consider these critical channels:

Every channel serves a different purpose and should have its strategy and tactics fully integrated with your broader marketing plan and tied to specific, measurable goals. If you don’t yet have a channel distribution strategy, a comprehensive content audit is a great starting point, which focuses on gaps and opportunities to help you maximize your existing marketing materials.

Growing a business often means tapping into new customer segments or geographic markets. SME leaders should conduct ongoing market research to identify expansion opportunities and tailor offerings accordingly.

Digital marketing, ecommerce platforms, and strategic distribution channels can help penetrate new markets effectively and help build additional revenue streams (more on this later).

Retaining existing customers is more cost-effective than acquiring new ones.

There’s been no shortage of studies showing that, on average, it costs three to five times more to acquire a new customer than it does to retain a returning one, and those numbers still hold in 2025.

Business leaders should prioritize retention as a key business growth strategy. Consider building customer loyalty through initiatives like:

Furthermore, CRMs can be costly, but the investment is invaluable, as these platforms help you gain actionable intel about your ideal customers. You can track interactions, enhance customer engagement, and increase lifetime value. When determining your overall marketing spend, a CRM is a tool to prioritize.

Relying on a single revenue stream is a big risk. SME leaders should explore complementary products or services that align with the core business.

Start by conducting market research to better understand what your customers want (as mentioned earlier, this should be an ongoing, dedicated effort). Then, get practical and look at your current capabilities. Where are there gaps? Do those gaps align with your customer research?

If you’re feeling stuck, explore these ideas and see what makes the most sense for your business:

Collaboration can be a powerful business growth strategy.

A small software company might consider partnering with a larger enterprise to integrate its solutions and expand its customer base.

Local retailers might form affiliated marketing campaigns with complementary brands to increase visibility and reduce costs.

Think about the types of partnerships that align with your goals and can create mutual value.

Just like you invest in customer retention, it’s imperative to put the same effort (if not more!) into your employees.

A skilled and motivated workforce is crucial for business growth. SME leaders should invest in employee training programs, leadership development, and mentorship opportunities.

Creating a positive work culture with competitive salaries and career advancement opportunities can enhance employee retention, productivity, and help you reach your goals sooner.

Scaling a small or mid-sized enterprise comes with countless challenges, but the right strategies will help you thrive.

Focus on efficiency, strengthening your digital presence, expanding into new markets, investing in customers and employees, diversifying revenue, and forming the right partnerships. And if all of that feels like too much, pick one and get really good at it; then incorporate another from the list.

Growth isn’t about overnight success; it’s about making smart, strategic moves that keep your business moving forward.