For most business owners, growth and expansion are fundamental goals. Entrepreneurs want to see their business expand because it’s a common indicator for success.
However, expanding your business is easier said than done. It requires careful research and strategic planning. On top of all that, expanding your business in this slow and volatile economy seems next to impossible right now. While it may seem difficult, many businesses of different sizes continue to grow and thrive even now. So below we will be taking a page out of the books of these successful enterprises and list some tips that business owners can use to expand their firms.
Internal Communication and Management
Before you decide to commit to expanding your business, it’s important to pay attention to your team. A company’s successful expansion strategy is dependent on the team members it has on board. Expansion requires all hands on deck, and your managers need to be able to articulate this effectively to the rest of the organization. Heather Uczynski reminds us in a previous article that a good manager helps their team see how they fit into the overall plan of the organization. If you are looking to expand your business, make sure that the whole organization is on board and they understand how they are part of this effort. This will not only make expanding easier and more efficient, but it safeguards the sustainability of your business.
Fixing Your Costs
Growing a business means increasing the company’s revenues. If you are expanding but the operational costs are also increasing, you are not making more money than you used to. To be able to successfully expand, you need to control your expenditures. There are a variety of ways to reduce business costs and improve your bottom line, such as investigating alternate sources to lessen your supply costs, or investing more on social media to cut down on your advertising spending. There are many ways to go about strategically lessening your costs while growing your business but these will depend on your situation and context.
Rethinking Your Business Structure
As you try to grow your business, your needs may change. As your business’ needs shift, you may require a change in business structure. While planning for expansion, consider rethinking your current business structure.
The Balance identifies the key reasons to consider when changing business structure, such as increasing liability protection, for tax considerations, for changes in ownership, or in cases where your team expands. For example, ZenBusiness states that an LLC is appealing for businesses who want a more flexible ownership and administrative structure compared to a corporation. Shifting to either an LLC or a corporation is also helpful for business owners who want to keep their personal assets and liabilities separate from that of the company’s. This type of protection is not afforded by other legal structures such as sole proprietorships.
Re-evaluating Your Products and Services
The pandemic has shifted consumers’ priorities and market trends. To be able to grow and thrive during this time, it is crucial to re-evaluate the products and services you are currently offering. Fox Business suggests adding new products and services to the mix based on thorough market research. Market research is essential before deciding to expand your current repertoire. It must focus on customer demand, manufacturing costs or delivering your product, and potential price points. It is only through research that you will be able to identify what products or services are worth adding.
However, Forbes also reminds business owners to stay true to your brand values when expanding because this is what attracted customers to your business in the first place. If you are introducing new products and services, make sure that they are in line with the brand you want to build for your company.
Article written by Andrea Gregory
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