Expanding a business is as challenging as setting up a whole new venture. Successful expansion is possible with sophisticated planning and execution. Here are some ways of taking a business to the next level.
buzzle.com reports that initially, a business requires few years to develop a strong foothold in the market. Once this is achieved, the next thing that comes in the minds of owners is expansion.
Taking the business to a higher level, where it can cater to a larger base of customers is ideally the target of owners.
A business needs strategic planning and analysis before actually starting the expansion process. Missing out on these points can adversely affect the profits, and may result in loss of established market position.
Expansion can be achieved in many ways. It is up to the company to decide which way is the best for its expansion.
Become a franchisor
Franchising has lately become one of the most successful methods of expansion. It provides the owner some control over the business.
Internal processes can be uniformly maintained among all the franchisees, thereby, creating a unique brand image. This is necessary to catch the eye of prospective customers who can later become real customers.
Franchising does not require significant financial input on the part of the franchisor and also helps in earning fees from franchisees. By doing so, a business can enhance its visibility in many locations without making any significant investment.
Diversification is a strategy used by many businesses for expansion. It involves developing new products and entering new markets, so as to increase the profitability of the organisation.
A variety of items in the product basket of the organisation serve as multiple sources of income and help in maintaining profits, even if, some of the products fail to perform well for a certain time period.
Diversification can be attained by entering into related segments, for instance, a notebook manufacturing company can add other stationery in its product basket so as to cater to a larger customer base.
Open new outlets
A business can expand by opening outlets at new locations, so that customers of those areas can make use of the product or service offered. Setting up new outlets requires a lot of money, therefore, businesses must undertake feasibility studies to learn the pros and cons associated with it. This form of expansion is good for ventures that have a consistent source of income.