When business is doing well, it may be time to expand. However, as lucrative as a business expansion can be, it can be slow and expensive. Use these seven tips (presented below by Zitrod) to increase the return on your investment and make your expansion worthwhile.
1. Rethink Your Business Plan
What is the main reason for your expansion? Do you not have enough staff? Is there a golden opportunity? Are you breaking into a new market? The reason will drive how you plan ahead. You may already have a business plan, but an expansion requires a modified plan that addresses the changes in your company’s needs, resources, funding, and strategies. Having a new plan can keep you on track and force you to figure out the details.
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2. Conduct Market Research
Doing research on your competition before you start expanding can save you time and money, especially if you want to add a new product or open up a new location. You need to know if there’s a place for you in that market and how stiff the competition will be. Competitive analysis isn’t just about finding competitors, either. You have to figure out exactly where your business fits in the market. A successful business provides a service that customers can’t get elsewhere for a better price.
3. Budget for Your Business Expansion
Expansions are an investment. You’ll need to budget for new expenses, such as facility, inventory, and employee costs. It will take some time for your income to cover the costs of the expansion, so make sure you have enough money set aside for the initial stages. You may even need to apply for a loan. Some loans work better for expansions than others, such as a business line of credit, but what you choose will depend on how quickly you need the money and how much you’ll actually need.
4. Cater to Your Customers
Let your customers know about the expansion and emphasize that it’s all possible because of them. You can even implement a customer loyalty program as a thank you for their business. Surveys show that loyalty programs appeal to over half of consumers and can even attract new customers.
5. Market Your Business Expansion Ahead of Time
Don’t wait to get the word out. Once you know you’re expanding, update your social media accounts and start posting signs, especially if you’ve signed a lease on a new location already. This is where automated location-based marketing can come in handy to generate anticipation for your expansion. The more traction you can get, the better.
6. Partner Up
A strategic partnership can make the difference between a successful expansion and a flop. Partnerships can involve co-marketing, cross-referencing data, sharing technology, and more. Start attending networking events that can get you connected with experienced businesses that share your vision.
7. Preserve Your Company’s Values
Company culture defines what values you stand by. When you expand, it’s easy for those values to get lost. Keep your culture strong by ensuring new hires are in alignment with company culture, highlighting staff for working hard during the expansion, and maintaining an open line of communication.
Businesses of all sizes can benefit from an expansion, whether it’s as simple as adding new products or as major as going back to school and redeveloping your entire approach to business. With the right planning, messaging, and support system, your expansion can take your business to new heights quickly and seamlessly.