For several businesses, growth and expansion remain to be the crucial things in business. All goals should somewhat be geared towards this direction (aside from cost-cutting, that is). However, some businesses have a hard time coping up due to today’s slack economy. Well, you don’t actually need to wait for your sales to increase before you expand. You yourself can put expansion plans in your hands. Do you want to know how? Here are some ways that you can do:
One common way to expand is by offering a new product and revising your product mix. Although it may seem simple, this strategy can make or break your business. A good way to start this strategy is to conduct a market study. You need to know what your customers want and hate. You must consider their preference and design your new product based on their inputs. Gone are the days when the manufacturer dictates what the market needs. The needs today vary depending on what the customers want; hence, their insights remain valuable. Consider their perspective and you will never go wrong.
Saturate Existing Market
Since you are only a small business, there is a high probability that you have not saturated your market yet. Hence, presenting a potential for growth. With this strategy, you need to dive deeper and know your existing market. You need to identify their demographics and transform these data as the basis for your marketing efforts. Determine their needs and design a product based on it. Using these market segments, you can introduce new products for them.
Since you have saturated your existing market, why not try new ones? One way of doing so is by moving to a new area through geographical expansion. This is the logic behind many franchise stores. This new investment allows you to tap new consumers from a different location. However, before doing so, make sure that you conduct a market study on the location to ensure that the business is viable. Furthermore, this new investment requires you to somewhat replicate your existing branch. If it’s a restaurant, make sure that you have the same or an improved branch in your new location. Otherwise, your customers will hate it. Also, prepare your logistics, marketing, and IT teams to establish new operations in the new area. For this aspect, some opt to just have it outsourced as the expansion makes it difficult to manage the operations. If this happens, you can contact West Legacy Group and inquire about their outsourcing services.
Acquire New Ones
As they commonly say it, ‘eliminate competition by buying it’. Applying it in a literal sense, you can reduce your competitors by buying their businesses. Of course, this requires a huge amount of investment but this certainly could be a good move to keep your business relevant and dominant in its industry. However, you must be prepared to manage a wider range of operations following the acquisition to be able to pull off such business move.
Expansion has never been an easy undertaking. However, all businesses want to have it. Take these tips into consideration so you will know how to traverse into these new waters.