Effective Strategies to Expand Your Business
If your company is already doing well, the next step is to expand the business.
Business expansion is an activity to expand the business by creating new markets, expanding facilities, adding human resources, etc.
Expansion can also be done by increasing economic activity in your business, which in turn will manifest in increasing business strength, increasing profits, accessing technology, and getting new customers.
With these various advantages, of course, business expansion is the goal that is expected by almost every business person, be it a large or small company.
However, getting to that point is not easy. A lot of effort and struggle must be made so that the business expansion process does not stop halfway.
Steps in Doing Business Expansion
In an effort to expand your business, at least you need the right way to apply it. Here are some strategies that you can apply in expanding your business.
Make a Well-Defined Plan
Before deciding to expand your business, plan as carefully as possible.
This will help you not to lose control of your previous business. In addition, a mature plan can also make it easier for you to direct where the new business will go.
There are many things to consider in making this plan, the main thing is that you have to know the current condition of your business.
Usually, a business that is ready to expand is one that has smooth sales, significant consumers, and has a fairly broad market.
Strengthen the main business first so that it can become the basis for the next plan.
After understanding things related to internal business, then you can learn new things that are useful for optimizing your business.
Create a plan regarding the next business model, capital used, and steps to be taken for its development.
Some important things to plan for are:
The business is ready for expansion because sales are smooth and there are already significant numbers of regular customers.
Within the next five years or so, businesses must have products with their own brand and can be produced by themselves.
The target market is very broad and the demand is very large, so it is necessary to look for new markets to increase sales.
New employees are needed so that all forms of operational activities can run continuously, and the sales process becomes faster and more effective.
Examples of planning in business expansion:
1. Increase product inventory to be able to serve the increasing market demand.
2. Create product variations so that customers have many choices of products to buy.
3. Add new warehouses to accommodate more products.
4. Open a physical/offline or online store with the aim of expanding the market.
5. Increase the number of employees to increase the effectiveness and efficiency of product sales as well as support various other operational activities.
6. Expanding sales target area.
Determine the Business Model
When expanding, the new business model is different from the previous business model.
In a long phase, new standard operating procedures (SOP) will be needed.
If you have a new employee, then business activities will also change slowly. The selling method will also change.
The importance of determining a business model will assist you in determining the right standards or methods to use in business operations.
If you determine a new target market and already have a new, more varied product type, then you must also determine the method used to cover the target market, get engagement, and make sales to that market.
Prepare Your Capital
During the expansion process, capital will definitely be needed, for example to pay employees, rent or build a new warehouse, build a physical store, buy an online store, or build your own production plant.
You can just use the profit from the sale as capital.
Adding New Products or Services
Your business certainly already has reliable products and services that have a lot of consumers. But there's nothing wrong with adding new products and services that are different from before.
This can be done by giving your business a new face by switching to a line that has never been tried before.
This is one way to expand business. Of course you can do this without leaving the business that was there before. To make this happen is not simple. Market analysis and research is needed to find out the products and services that consumers want.
Promotion Actively
It is possible that with this business expansion, the products issued can be as good or maybe better than the previous products.
However, no one will know about this if you don't promote it.
Promotion can increase consumer trust in your product or even your company as a whole.
It doesn't matter if you've started promoting before your new business is actually physically formed.
Searching for New Target Markets
One of the business expansion criteria is the creation of new markets.
If your business creates products and services that are different from the previous business, of course, you need target consumers who match the product.
However, the search for a new target market does not mean you cannot find a target market in the previous product.
If you believe in expanding your business, you can still bring old products to be marketed in different market segments.
This expansion strategy is intended to find other possible target customers that are right for your products and services.
Opening a Branch
If you have seen progress in your main business, consider opening a new branch to expand your reach to consumers.
You can open a new branch in the same area or in a different one.
Branches located in the same area are usually used to assist your business in serving customers who may not be served by the main branch.
If the goal is to get more profits, you can open branches in other areas, where competition for these products is not too tight, and to reach new customers in different areas.
Consider a franchise business model.
If you have a successful business, and you want it to grow rapidly, consider franchising. (entrepreneur.com)
Although franchise costs are high and moving to a franchise model is complex and requires a lot of marketing know-how, it can make all the difference if you are looking for fast growth.
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