Does your business have strong sales? Do you have loyal customers wanting more? Do you have positive cash flow? Do you find your resources are running thin?
If you’ve said yes to these questions than it could be time to take the next step and expand your business. I know that the idea of developing your business is exciting but I always share the following quote with my clients before discussing growth initiatives:
“Don’t run before you can walk”
Increasing the capacity of your business can be an expensive process so it’s important that you carefully assess your business’s needs and evaluate which option is most affordable and will pay you back in results.
Here are four ways you can expand your business:
1. Organic Growth. Customers in today’s market care about value over loyalty. For that reason, many businesses choose an organic growth strategy and devote their profits towards strengthening the areas that will continue to keep key customers happy. Organic growth can increase your market share and improve customer retention, however it requires a steady flow of actionable business improvement initiatives and forward thinking business strategies.
2. Location Expansion. Opening up a secondary brick-and-mortar location is something to consider when you’re ready to expand your geographic audience. Creating a second location is less expensive than starting from scratch and it can be a way to transform your existing operations into a much more profitable business.
3. Acquiring Competitors. In today’s economy businesses are looking to sell, which creates an environment for expanding businesses to cut out the competitors and fold their operations and profits into their own. Better yet, if you buy within your industry you already have the expertise and experience needed to improve your competitor’s operations.
4. Expanding into a Related Market. It’s likely that through developing your own business, you’d be able to apply those strengths to a relatable field. Expanding in a related market with complementary products or services will increase your potential customer base and can likewise revitalize your sales cycle.
Choosing to growing your business can increase your economies of scale or/and customer base as long as you choose the correct and most realistic method.