Growth 101: The Basic Rules Of Business Expansion
The aim of every business is to expand onto the world stage. That is when you know your business is successful and you are here to stay. However, getting to that point is very difficult. Just ask the eighty percent of businesses that fail after the first year. If you want to grow and expand, you will need to cement your position in the industry first. Once you are a player in the industry, you need to turn to these helpful hints.
No. 1: Maximize Profitability And Increase Productivity
There is no way you can expand if you don’t have the numbers to back up your expansion. Any business that tries is bound for the scrapheap. Before you can even consider expanding, you need a loyal base of customers. And, you need to be able to bridge the productivity gap. The more customers you have spending money, the more you will need to create. Most companies turn to management advisory accounting companies when they need to hit these targets. And, whisper it quietly, some even go to management consultant companies. Shush! You could do it alone with leadership and incentives, but the professionals tend to know best.
No. 2: Offer Your Business As A Franchise
A business franchise is a great way to make extra money and build awareness of your brand. In basic terms, a company takes your name and uses it to trade. You, per the agreement, get a big chunk of the profits and sales they make. What’s not to like about that partnership? Well, a few things to be honest. The main one is they are trading under your name, so they need to produce products to the same standard. The best franchises put guidelines in place so that no two establishments offer a different quality service. That’s why a Big Mac tastes the same wherever you are in the world. Before you sign on the doted line, make sure you multivariate for a clear analysis.
No. 3: Open A New Store
If the thought of leaving your expansion in the hands of strangers isn’t appealing, you can open a new store. Logic dictates that the more stores you have, the more money you are likely to make. After all, two heads are better than one. Don’t take that logic for granted, however. Just because you have more stores doesn’t mean they will be successful. Before you open, do some market research to get a feeling for the clientele. Maybe the consumers in the new area aren’t as excited by your brand as the ones in your existing area. You won’t know until you have the data in front of your eyes. If the idea is good to go, make sure you hire a separate team for the new venue.
No. 4: Form An Alliance
SMEs don’t have the resources to expand as they are too small. Sound familiar? It doesn’t matter, though, as long as you have a partner. When you pool your resources, you have more power at your disposal. That makes creating a successful expansion much easier. Just make sure you can work with said company as it is a nightmare otherwise.
Finally, don’t forget to attack other markets and diversify. Don’t just play it safe and milk this one market for everything it is worth.
Photo by Monkey Business | Shutterstock
Recommended
-
One Rx For Employee Community ...April 19th, 2023
-
Meet Miss Atilla, Founder And ...October 31st, 2022
-
The Business Of The Big Apple:...August 17th, 2021
-
CRM Software For BeginnersMarch 26th, 2021
-
Turning “Imagine” Into Act...March 17th, 2021
