The desire to grow and expand a business is central to the goals of most small business owners. This goal can be elusive for many entrepreneurs in today’s competitive business climate.
The following six strategies may prove useful to the business owner that seeks to grow their business interests.
New Products And Services
This strategy sounds simple enough. However, the execution might prove complicated. The first priority is determining the right products and services to offer your customers. Next, the profitability of offering these products and services should be determined.
New products and services will demand physical space and attention. It may be necessary to rent storage units to store older, or slower moving products until your business can move to a larger facility.
Sell More To Existing Customers
Deeper penetration into your existing customer base is a great way to expand a business. An analysis of market segmentation should be performed. This analysis will identify the customers most likely to purchase your products. The bulk of your sales and marketing efforts should concentrate on these customers.
The market segmentation analysis is capable of dividing customers into groups based on gender, age, location, and history of purchases. When you know which demographic is most likely to patronize your business, is easier to decide where to spend marketing dollars.
You will at some point conclude that the products and services offered by your company need to be offered to a larger base of customers. You might find these customers in different geographical locations. You can also find it useful to exploit different segments of the market.
Retail businesses that use storefronts to sell their wares will benefit most from expansions into other geographical locations. A move of this type will require a considerable investment in time, energy, and finances. You should perform all necessary research to determine the viability of a location before attempting the expansion. The new location should provide enough customers to support your business needs.
Most business entities concentrate their efforts on specific demographic groups that are most likely to appreciate the products and services offered by the business. However, there could be other groups of people that show a relevant interest in what the business has to offer.
When attempting to expand into new customer markets, the right mediums must be used at the right time. You should increase your advertising to these new markets. But it must be done correctly to realize successful expansion into the market.
New Channels For Sales And Delivery
A perfect example of what a new channel for sales and delivery can do for your small business efforts is the internet. A number of companies have been able to reinvent themselves to capitalize on the opportunities presented to them on the web. The web has been especially beneficial to brick and mortar businesses that are able to now reach customers online who cannot physically patronize their businesses.
The business owners that educates himself on the basics of search engine optimization and other forms of online marketing will see great benefit from their efforts.
The acquisition of other business entities is perhaps the quickest way to expand a business. A merger or acquisition of another business can instantly double the size of your existing business. The correct acquisition can result in greatly increased revenue. However, due diligence must be exercised to assure that the acquisition is beneficial to you and your business.
Most business owners aspire to grow their businesses to their fullest potential. There are many tools available today to help achieve this goal. However, business owners should arm themselves with knowledge and plan properly before expansion is attempted. The six tips above will provide a great foundation for business owners looking to expand the scope of their operations.
Bio: Jeremy is a tech and business writer from Simi Valley, CA. He’s worked for Adobe, Google, and himself. He lives for success stories, and hopes to be one someday.