How to expand a business?
It’s a question every entrepreneur will ask his or herself at some point in the life cycle of their company. There are a number of ways to do it, but you want to make sure that you are as careful in expanding your company as you were when you started it up.
Above all else, it’s important to understand that growing a business is all about doing so at a pace that you will be able to keep up with. And that’s what we’ll explore in this post.
So keep reading to learn more. By the end, you’ll have a good answer to the question of how to expand a business and begin putting together your own strategy for reaching larger markets.
Growth Strategies to Help You Move Forward
In many ways, business expansion requires just as much planning as starting a business does, but the main difference is that your focus will be drastically different. You already know what works as far your operations are concerned, but now it’s time to figure out how to use those operations as a foundation to run your business on a larger scale.
Since your business is small, we aren’t talking about taking an operation international. That’s a good goal to have, of course, but one that’s still a ways off. You can take some smaller steps to expand in other ways, however.
Those steps include:
- Diversifying Your Offerings – Many people might not consider this fairly straightforward step to be a business expansion strategy, but it is. By offering new products to your customers, you not only explore different options for bringing in revenue, but you make it less likely for customers to stray as well. Customer habits change with time. If you don’t have what they’re looking for, then there’s very little to keep them from going somewhere else. By providing a more diverse range of products and services related to the core of your business, you can ensure that you will retain your customers by giving them one place to have all of their needs taken care of. When I talk about how to expand a business by offering a wider range of products, it’s important to point out that I don’t necessarily mean you should offer everything under the sun like a big box retail store. Instead, think of something like a residential and commercial contractor who can do everything from install a window to remodel an entire room. That’s something that you might consider when working on business expansion.
- Thinking About Licensing – If you have a particularly unique brand, then you might be able to bring in additional revenue and get wider recognition through licensing that brand. While this step can be relatively low-cost compared to others when it comes to expanding the business, it’s one that requires a good bit of oversight because you want to make sure the licensee isn’t doing anything to tarnish the name of your product. Even though the cost is minimal, licensing can still present a risk if not handled correctly.
- Looking at the Demographics You Serve – Anyone wondering about how to expand a business needs to look at who they target. While you may have started your company by addressing the needs of a certain segment of people, you can increase your chances of growing by looking at the needs of others. This process of business expansion could complement the offering of more services, but it has to be researched thoroughly to ensure that you are able to bring something unique that these prospective new customers would not be able to get otherwise.
- Thinking About Your Marketing – When thinking about how to expand your business, marketing is crucial. It’s a process that needs to be ongoing no matter what phase the business in. As your company is expanding, your marketing efforts need to be ramped up. You not only want to make sure you change up your normal message to keep it from getting stale, but you want to explore other options for marketing as well. Go beyond normal practices like business cards, flyers, and cold calling to try and come up with something truly unique. For instance, you might consider creating online videos that demonstrate your products or services, offering giveaways through social media, or offering to speak at local events. When thinking of how to expand a business through marketing, it’s important to remember that the effectiveness of a method will depend on what your business does. No matter what your business does, however, there’s sure to be an effective marketing method that you can use to your advantage.
Other Considerations to Make
When wondering how to expand a business, you may need to keep other considerations in mind. Besides doing all of the necessary research to ensure expanding your small business in the way you want is possible, you also want to make sure the money to do it is there. Consider having a financial analysis carried out during your planning phase. This analysis will help to paint a clear picture regarding how feasible your expansion plans are.
Additionally, it becomes increasingly important to watch your company’s expenditures. As you carry out actions to help your business grow, operating costs can easily get away from you unless you can an eye on them. If that happens, then your company’s expansion could be in jeopardy well before it reaches the point you want. With the right planning and guidance, in addition to a watchful eye, you’ll no longer wonder about how to expand a business. You’ll be doing it.
Remember, running a business successfully does not need to be complicated. Keep it simple!
For more valuable articles to help you successfully manage the challenges of growing your business profitably, please search our blog at our website www.portalcfo.com.
Manny Skevofilax is a consultant and speaker that helps his clients successfully navigate the challenges of growing their businesses profitably. Since 2003, Manny helps businesses enhance their results by using his experience in strategic planning, financial statement analysis, operations, organizational development, and team-building. His consulting firm, PORTAL CFO Consulting, Inc., has attracted clients from diverse industries in the United States and abroad.
Manny can be reached at 410-808-3441 or via email at manny@portalcfo.com.