Businesses like Subway, The Body Shop, and Walmart have skyrocketing numbers when it comes to profitability and revenue. Do you think they started there? No, with a well-thought and planned business strategy they achieve success. Expansion strategy is a process adopted by a company when trying to achieve a high growth level as compared to its previous achievements. Like every other small business owner, your ultimate dream is to expand your small business into a large business. There are multiple ways to do that, but listed below are the two major business segments where you need to implement strategies on:
Pick a Business Strategy:
Internal Business Growth Strategy
This type of strategy includes the redesigning of existing products/services as well as the production of new products/services. It uses business’ internal resources only; it includes expansion of business, modernization, and diversification.
External Business Growth Strategy
External growth strategy or integrative growth strategy is another part of the business growth strategy where two firms combine together to form a larger enterprise and expand their business operations. It includes merging with other firms, acquisition, joint ventures as well as strategic alliance.
Business Expansion Advantages
- The ability to maximize the economies of scale.
- Increase production leads to cost reduction.
- Discounts can help save from purchasing inventory.
- Increase the number of the worker for larger output.
- Increase in stock and other business related resources.
- More sales and profits.
The business expansion gives an impression of the greater financial viability of the business. Normally lender prefers to fund larger businesses than smaller ones.
Business Growth Strategies
Business expansion process starts with a comprehensive, well planned, and actionable strategy. To cover the basics, consider incorporating the following methods:
- Do your Research
Market research is the first step toward developing a strong growth strategy for your business. Primarily, you need to focus on your target market. What are your customers’ requirements and preferences as well as their ideology about your products? Then find out what will make them buy from you? Analyze your competitors and look what they are doing.
- Be Creative with your Product Line
Methodical expansion of your product line is an excellent way to expand your targeted audience, thus leading to your business growth. Review your existing offers and start searching for new ideas to uncover additional business’ growth opportunities. Think out of the box, be creative with your products.
- Come up with a New Sales Plan
Your sales plan is your business strategy that sets out your target sales and strategies for your business. Basically, it is a blueprint for your objectives. So sit with your sales executives and design a new sales plan that works for your business. Usually, the sales plan include your target customers, revenue goals, promotions and pricing, available resources, team structure, and the overall market condition.
- Keep hold of your Old Customers
Create a plan to retain your existing customers as getting new customers costs you more than keeping the existing ones. Develop a strategy that can help you retain them and get them to make more purchases from your business by introducing discounts offers that can benefit them.
Apart from all of this, you need to define your target market demographics, and location, after that conduct market research for your products and services. Use a systematic approach to find new markets. Depending on the size of expansion you must utilize your resources effectively. Using these tactics, you can effortlessly expand your business into new markets and gain more customers as well as profits. So what are you waiting for? Take your first step towards your business success!
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