Business Expansion Strategy
Growth is essential for a business to survive in the long-term and for it to achieve success. Taking your business to the next level means taking risks. It is not just any risks but calculated risks.
Did you know that about 20% of businesses fail in the first year and 50% fail after 5 years? The number of failing businesses increases year after year. After 10 years, about 70% of businesses fail. Only those around 30% who manage to survive gets the chance to be successful.
Did you also know that successful businesses do not settle in one service or product? This article talks about business expansions done to achieve growth that made today’s successful businesses a hit.
How to Grow Your Business
Are you a startup business owner? You, too, can achieve success by creating a diversification plan. Since a downturn is also along the way, it is best to plan a diversification. Diversification means growing your business and preparing insurance that it will survive time come the business slows.
Here are different ways your business model becomes diversified:
- Introduce new products or services
- Add different customer target groups
- Purchase related companies
- Establish branches in new locations
- Expand business overseas
Business Growth Strategies
Let others operate your business through franchising. They will help you sell it to people and operate successfully. It is a way to expand and increase revenue for your company.
For example, fast-food companies. They sell fast-food chain franchises to different locations all over the world. It is a key part of business growth without the double hassle of operating it on your own. You can make money in franchising through memberships or registrations, royalties, monthly fees, rent, and more.
You might be tempted to start selling franchises right away. STOP. First, make sure your business is franchisable. Search what the criteria of a franchisable business are and what are the requirements. This involves thorough planning and providing accurate information about the business and the processes.
If you find your business not franchisable, there are more alternatives to expanding your business. You can sell the rights of your business trademark and logo. However, unlike a franchise, you can’t control how the buyer runs their business once your trademark and logo are sold.
Global or International
Of the world’s entire population, 50% belongs to the middle class. This means almost 4 billion people are not considered poor and can buy their needs. This allows a business to target new customers or market.
Make your business reach customers around the globe through exporting. This helps you gain new customers to buy your product or service.
It is advised that you attend trade fairs and seminars to learn more about potential customers. Also, it would help if you learned the trade agreements, regulations, and exporting process.
One of the most effective ways to grow and expand your business is through word-of-mouth. In this method, a company rewards existing customers if they can bring new customers called referrals. Subscription-based businesses widely use this.
Offer a valuable reward if you plan on using referral-based marketing. This way, your existing customers are your marketers. This also means your products or services must be preferable. If your existing customers do not like your product or service, it will be hard to get referrals from them even with the reward. Why? Because blood is thicker than water. Would you recommend a rubbish product to your family and friends? Certainly not.
So, to make referral-based marketing work, you need to have quality services or products while providing valuable rewards to existing customers.
Remember: Each company has different strengths. So, one that works on others may not work on you. The most important thing is to find a strategy that works best for your business expansion. Don’t be scared of trial and error.
To fail is to learn.