First and foremost, there’s no doubt that business expansion is something that should be well and truly celebrated.
On the other hand, it’s also something that can result in very dangerous territory. Put simply, you are venturing out of your comfort zone – and this can be the formula that sends your business into complete disarray.
At the same time, while it can be risky, the rewards can be terrific. Expanding into new markets or countries can allow your business to reap fantastic profits – but there are right and wrong ways to go about this.
Suffice to say, we are going to hone in on the former. We are now going to look at how you can (almost) safely plan to expand your business.
Sometimes it’s about your existing customers
One of the big mistakes that we see a lot of businesses make in relation to expansion is only focusing their attention on new customers. Granted, this seems logical, but there is a solution much closer to home.
Sure, in some industries this might not be applicable, but on the whole your existing customers are an excellent source of expansion. Sometimes, it’s like effectively “upselling” to them, while on other occasions it’s about tapping into your existing relationship and finding out what they are really missing.
This is by far and away the cheapest form of expansion, and there’s far less risk involved.
Tread carefully with your storage
In most industries, expansion usually involves selling more of a particular product. Naturally, unless you happen to be a service provider or involved in drop shipping, you need to house these additional products somewhere.
It’s at this point where you have to tread very carefully. Yes, you need more storage space, but you don’t want to enter into a hugely expensive commitment for something that isn’t guaranteed to work. For this reason, it might be advisable to turn to a more temporary solution. It might be for storing office equipment, or storing the additional products that you are going to supply. Regardless, making sure these aren’t long-term arrangements can remove a small element of risk from your strategy.
You might just need a brand campaign
Sure, opening up to new markets or releasing new products can be the most obvious way you expand, but some businesses have other options on the table. One of these comes in the form of a brand campaign. In other words, you place a lot more attention on advertising your brand.
It should be highlighted that this a long-term gain, and is unlikely to reap quick results. However, it’s another very efficient method and can result in that slow growth which is a little more sustainable for some people.
Analyze the competition
If we were to tell you one area to pledge most of your resources it would undoubtedly fall within your analysis. Usually, this comes in the form of market research, and making sure you know everything about the competition and how they are faring in your desired markets.
If they are struggling, find out why. If they are succeeding, find out if there is room for you to muscle in and take some market share.
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