Business is good: that thought is music to the ears of many business owners. When things are going right, it’s hard to ignore the money rolling in hand over fist. Yet, just because a business has tasted a modicum of success, this does not mean that it is time to relax.
When a business is reaping the reward of decent income, then is the time to consider what it would take to expand the business to reach the next level of success. Expanding a business is costly at first; yet, despite the initial investment—and it truly is an investment that will benefit a growing business—there is good reason to push forward with plans for expansion. For many business owners, this is a scary time in their company’s development. Much of this fear can be eliminated if one considers how to expand their business the right way. The following business-related expansion ideas may prove to be right for a business looking to make that next leap in progress.
Introducing a New Product
When a company has a successful product line, it only makes sense to not allow the already existing momentum to die off. While the demand for a company’s products is in full swing, that is the time to start planning for the next hot product release. Customers that like a brand typically want to see more from the manufacturer of that brand. When a company fails to deliver, this is like leaving money on the table. Expanding a product line with the right products will only help to reinforce a continuance of the success a company is already experiencing with their customer base.
Opening a New Location
It is a risky move to open a new location; however, with great risk often comes great profit potential. Expanding a business into a new location opens a company up to an entirely new segment of the market to which it did not formerly have access. The key to remember here is to not open a new store too close to the first one. A new location should be highly visible, get lots of foot traffic and appeal to the needs of the local market in which it operates. This will require some serious market analysis, but that is what pulling off a proper expansion into a new location is all about.
Using Independent Affiliates
If a company already has a website and an online presence, it may be time to ramp online progress up a bit. One way to do this is to employ the use of an affiliate program. Many companies these days successfully utilize affiliate marketing distribution methods to expand their reach into areas of the online market to which they would otherwise not have access. In addition, leveraging the marketing power of affiliate marketers is a cost effective way to boost overall monthly and quarterly sales volume. Since affiliate marketers only get paid when they generate leads that purchase products from your website, this mitigates costs that would tend to eat into profits from hiring additional hourly and salary-based employees.
Another way to expand, while putting other people’s money to use in the process, is to offer franchising options to investors who want in on the action your company is generating. Many people want to invest in opening new stores in new corners of the market. Some of these individuals are more than willing to pay a hefty sum to make this type of expansion of a business and its brand easier on the original business owner’s pocketbook. This method of expansion will often obligate the company headquarters to provide training and lay out different operational policies, but the rewards are hard to ignore. This is especially the case when someone else is willing to help foot the bill to push a business’s expansion goals forward.
Expansion is a powerful mode of reaching new depths of market share by a company. Since there are various types of expansion that can help achieve this goal, it is key for a business owner to determine which expansion approach is right for the particular type of operation they are overseeing. A company’s financial situation and mode of operation will often dictate what modes of expansion are feasible and which are not. Although this can make the decision to expand a difficult one, it is important to remember that at some point all businesses need to expand to achieve greater levels of success.
About the author
Philip Piletic is a writer and blogger with a love for business, finance and technology. His goal is to give useful advice and help people adapt to ever evolving world of today.