A decision to expand your existing scope of business is a proof that you are doing well, and able to get the grip on new challenges and opportunities. However, before you make the big leap you need to consider your current stress level, or can you focus and devote fully to such an endeavor, the amount of your expansion budget, and the current technology you operate, and how will it relate to the expansion. Here are some of the strategies.
1. Boost Product Sales in Existing Markets
This is the foolproof and the easiest way to expand. The risks are low and you only need a bigger location, altered pricing strategies and better marketing techniques. The good side is that you are dealing with a familiar customer group, the one who already knows your products or services, so you will know if you take the wrong turn.
2. Set up a New Product Line
Provided that you have a successful, best-selling product that has been around for some time and that you team has been collecting data and evaluating customer feedback and reviews, you can start developing a new even more successful products. This is not only an expansion tactic but a normal way of things in business, products evolve and so do the customers.
3. Invest into New Location or Market Sector
These strategies are costlier and more uncertain than the previous two. They require extensive research, beta testing and weatherproof marketing strategies, especially if you are shifting your focus form older to younger populace. There are also issues with management of new remote locations. However, there are large benefits to in, like in many business-friendly countries, Singapore company incorporation is easy to execute, and the payoffs overtop the risks by large. Actually, these methods are inevitable for most business looking to expand in a big way.
4. Start a Chain
If you are managing a restaurant, retail or service business like a beauty parlor, that can be reproduced with no difficulties, there is not a single reason why you shouldn’t start a chain. However, you mustn’t forget what made your first location successful in the first place – was it the location yourself, the staff or you. Give your first location a thorough analysis and plan how to duplicate it and improve it. The exciting thing about starting a chain is that your staff will get some management experience, and the opportunity to train and expand their skills.
This method is quick to grow but involves the costly franchising agreement that won’t cost you less than $100,000. With this form of expansion come the many travels, giving lectures and training, printing manuals in many languages and excellent organization.
6. Joining up
If you manage to find a right partner, a merger or acquisition has many benefits and can be observed as an expansion strategy because it combines the best of the companies involved. Not only does it increase the customer base, but in also expands intellectual capital and operational effectiveness. However, you must know that big partners expect high performance.
Expansion is a logical and rational step when your business reaches a certain point in development. There are many roads to it, and the nature of your business model will eventually pick the right one.
Photo credit: Len Matthews