For many entrepreneurs and companies, their key goals are expansion and growth. But, in the present lackluster economy that is marked by slow growth, how could an enterprise be expanded? There are actually many ways to expand a business in this type of atmosphere. For our purposes we will focus on the 6 that we believe are the easiest and most effective.
1. Expand Your Products And Services. Executing this tactic can be extremely challenging, even though it sounds simple at first glance. To begin with, you need to figure out which services and products your overall customers have an interest in and how much you can charge for them. Then, you need to figure out if there is any kind of worthwhile profit to suit your needs.
Prior to commit either human or financial resources for an expansion of the support or products which you provide, market research should be thoroughly conducted. Speak with customers you have already relating to your concepts for new products and services and include the price points you are interested in. In your researching the market, calculate the cost it may need anyone to sell them, including the expense of manufacture and delivery. In addition, look at the interest in the products.
2. Expand The Quantity Of Products And Services Sold To Current Customers. This flips the initial strategy on its ear and was designed to go deeper in the customer base you currently have. You should first identify the segments of your own customer base that are more inclined to buy more by conducting a market segmentation analysis. You can then focus on these segments for future efforts in sales and marketing. The segmentation is completed according to buying history, location, gender, age, or other criteria that you just select. These segments could be analyzed for their profitability potential.
3. New Territory Expansion. The focus with this idea is to look for new customers and then sell and market your existing services and products for them. You should move out from the places that you currently operate into different locations, niches, and segments.
For those who have a storefront or retail business, you could consider seeing a different geographic spot to open a brand new location. For instance, if you operate in Ft. Lauderdale, Florida and want to expand to Boca Raton this is a pretty straightforward, not to mention logical expansion. This is not the same thing as expanding hundreds of miles away to northern parts of Florida. You will have to invest a significant amount of time and money to do this hence the expansion should be justified in advance by doing market research. Consider utilizing a virtual office Boca Raton to control costs and offer the appearance of a physical presence with in the city of Boca Raton. Virtual offices offer many of the trappings of a traditional office space without the expensive overhead.
4. New Customer Market Targeting. Based on psychological factors including values, activities, and interests or on demographics like location, gender, and age, specific customer markets are targeted by businesses for his or her marketing and sales efforts. However, you could wonder if other markets include customers who may be interested in your company’s services or products. When you are thinking how suitable a fresh marketplace is, this can be a critical component which must be evaluated.
5. Draw On New Channels For Sales And Delivery. The most effective example of how small companies may be transformed by way of a new channel for sales and delivery is definitely the Internet. To be able to make use of the opportunities available on the web, a countless quantity of companies have reinvented themselves. They have learned techniques of search engine optimisation (SEO) to bring in more prospective customers and can include companies who are advertising online to arrive at a broader audience as well as retail organizations who definitely have opened stores online.
6. Business Acquisition. When it comes to expansion and growth, this could be the quickest route. It is possible to increase your sales revenue upon an exponential basis and literally double the dimensions of your organization by acquiring or merging with another business. However, prior to deciding to progress with a business merger, you have to perform your due diligence on candidates for acquisition.
The financial condition of your company ought to be your main focus while you are doing your research which include the soundness in the its current contracts, the breadth of its customer base, along with the depth and strength from the team of managers. Search for synergies which will cause the combination of the two to emerge like a stronger business than either one could be into it own while you seek out companies to purchase.
While your expansion and business growth plans do not necessarily need to be dictated from the economic conditions. A business owner would be foolish not to consider all factors before expanding from avirtual office Fort Lauderdale to Boca Raton. While the decision could make sense from a high level perspective it might not look as economically viable for a small business when examined more closely. Regardless, if you want to put your business onto the expansion fast track, use more than one of such suggestions.