Here you are, already over the fear of the uncertain. You have mastered the art of being your own boss, being a good boss to your own employees, and taking care of clients. Your venture is going at an excellent pace and it is making you think about expanding.
What should come into consideration when thinking about business expansion?
In the long and bumpy road of running your own business, there are stop points that make you think of giving up and there are points that make you feel like you can take on an increase in business size. It could be through expanding the range of services you offer, increasing the size of your location, or opening a new branch somewhere else.
The needs of your customers
Let us say you have been in the game long enough that you have already established your own consumer base. You have regular clients coming in for your services and you know them well enough to know what they need or might need in the future.
Using the knowledge and experience you have in serving them, you can use it as a blueprint for the next upsizing move for your business. Offer services that are related to the ones they usually get from you. Better yet, survey these loyal customers. That will give you an in-depth insight on their preferences as customers—you can slip in some feedback request about your services, too. You would want to improve on things your clients are concerned about when transacting with you while making your business bigger.
Find out the costs of expansion
Whether the expansion you are planning is to offer a wider range of goods and services, increasing the size of your current location, opening a new branch under your name, or having your business franchised, it is to be expected that you will have to let go of some, if not all, of your business earnings during the previous years.
This might be a heavy step, but it is completely necessary to attain your business expansion goals. Costing will give you a better grip on the planned expansion, you do not want to experience financial constraints in the middle of taking the business expansion step. Not only it will cause delays, but it can jeopardize the services you have been providing. How? You will be pouring resources into the expansion move, leaving little resources for your main lines of service.
Going international
What we mean by ‘going international’ is considering exporting your products. If your business is product-oriented rather than providing service, you can consider opening up the delivery of your goods to international clients. This can provide you with better reach and higher visibility among consumers.
If your products are in high demand and can only be produced in your location, it is a good opportunity to exploit that advantage. It is an edge you have over your competitors—having a product only yours or a few other businesses can provide.
Going international is not exactly a walk in the park, just like all roads you have to take when running a business. You will have to work with a trusted international logistics partner, customs, and customers complaining that their products are taking too long to arrive in the mail. But all is worth it in the end, especially if you thrive by working with the best logistics providers and ensuring that your overseas clients are up to date with their orders’ status.
Are you ready?
In expanding a business, the business itself should not be the only one getting prepped for changes. The most important part of the expansion is your readiness. Why? It will be impossible for any plans to be executed properly if you are not prepared. The preparedness can be both emotional and physical. Ask yourself these questions before taking the step:
- Am I financially ready for a business expansion?
- Do I have the time?
- Am I in the right headspace to make a big leap?
Business expansion is a territory that should be threaded carefully. It comes with risks that can throw a business out of a good run. An ill-timed expansion with inadequate preparation can ruin a whole business venture.
It is recommended that you assess not only your business but yourself when it comes to making a big business move. Know when you are ready and execute when you know you are all set. Readiness may not be a guarantee, but it increases the chances of your shot hitting the target.