Business expansion is a goal for many SMEs, and is achievable with the right growth strategy. Caution should be taken when expanding a business, as you don’t want to grow too fast or “bite off more than you can chew.” You should also conduct enough market research to be confident that there is a market big enough for your expansion.
Growing your business involves a lot of planning, developing and strategising – but how do you do it in a practical sense? If you own a services business then you might not need to physically grow, just improve your marketing approach in order to increase your client base. However, if you sell products then expansion may mean opening new stores and hiring new staff.
Expand to Where?
First of all you need to decide just how far you want the business to expand, so you have clear goals and objectives to plan towards. Do you want to expand locally, nationally or go global? Before deciding which new markets you’re heading into, you need to conduct significant research to prove that there is a need for your product or service in that location. Nevertheless, if you just want to sell more of the same products to the same people or new customers, then this is less risky and you should set out a plan for reaching out to new demographics or a scheme for creating loyal customers.
A Larger Workspace
In most cases, business expansion means relocating to a larger premises. You will probably need more space or more staff – or both if your plan for growth succeeds. Office relocation can get messy if not planned properly, so make sure it all goes smoothly with professional help. Another reason for relocating is to move your base to an area which is more central as you open more stores or locations, so you can travel to sites easily.
Diversify Products or Services
An easy way to start growing your business is to recognise what needs your customers have, and try and fulfil them. Expand your product range or offer more services to complement the ones you already offer to create more revenue from your regular customers. This is a pretty fool proof way to successful expansion, as you’re offering more to an established market.
Franchising
If you have a successful business model and want to take it further afield, then you could decide that franchising is the best way to expand. Some of the most successful companies in the world are franchises, so it’s worth exploring.
Business expansion is a process – stick with it.
