Is your business on the verge of expansion after years of struggles? If the answer is yes, then congratulations to you, you deserve it! You have finally got out of the “can my business really work?” stage and probably, you are now eager to diversify and create other branches of your business and start the next stage—to be one of the most successful companies in the world.
Although the idea of expansion is fun and exciting, it is not as easy as you may think. The fact that your business is already established does not mean that your next branch or your expansion would be as successful. You have to stop and think if you are truly ready to venture to the big corporate world.
With that being said, expansion is not a shotgun process as you will still have to consider a lot of things. You can’t just wake up one day and say “Hey, I think I want to expand my business. In fact, I’ll do it right now!” If you do that, then you can say goodbye to loads of money.
It’s about Timing
When planning for any major changes to your business, most especially an expansion, it is important to consider the timing in order to minimize any possible disruptions. Schedule the expansion on when your product or service is highly in demand or what month people would most likely need it. This way, you will supply the demand plus, it will give you ample time to plan the launching.
What do you Really Need to Expand?
Also, identify exactly what needs to be expanded. Determine which parts of your business you wish to expand and evaluate if this is really necessary at the moment. Expanding just for the sake of expanding might lead to increased inefficiencies.
Do you have the Money for Expansion?
Obviously, budget is necessary. With regards to expansion, it is easy to get carried away and end up spending more than you can actually afford. When it comes to branching out, remember that it will be as if you are starting a whole new business altogether. Consider the location, competition and the target market—a detailed marketing plan is necessary.
Know What people are Talking about You
Another thing to ensure is your target market and what they are saying about your product or service. You have to make sure if your customers have your back when you are going to try out a new location. In order to do this, you can check your online reputation if it is still well-managed to the point that you have less or zero bad publicity
You can make a simple Google search to know what people are saying about your business. If your reputation is okay, you have to let your customers know about your expansion as well. By doing so, your customers will feel as if they are part of your company and it will be like hitting two birds with one stone for you since it will give you a good reputation and they will, most likely, refer you to their friends near your target location.
Check Your Resources
Lastly, you have to check your resources. In most cases, you most likely need new staff to help run your business. Check how many additional resources (i.e. equipments, overhead costs, etc.) you need both in budget and manpower so that you can always account for it.
Don’t Forget your Marketing Strategy!
Additionally, you also need to have a detailed marketing plan, especially about the expansion. If you’ve been doing offline marketing, that is not a problem, but you will also have to consider that some of your customers may be more tech-savvy and would most likely look for you on the Internet. It is vital to have a strategy both for offline and online marketing for bigger audience reach and engagement.
Ultimately, you have to shell out tons of money for business expansion, but considering the aforementioned points, you should be able to plan and execute it well. Plan your time very well, work around your budget and make sure you have a market so that the expansion will become a success.