Regardless of the status of the economy, growth and expansion remains one of the main goals for most businesses and entrepreneurs stay up thinking of a growth strategy that can catapult their business to the next level. Even with a slow growth in economy, expansion is still the desire of most business owners.
Owning a business is one thing that is totally different from expanding it. To maintain and sustain a business, and to realize eventual success, every business owner must know how to build and expand their once small, unknown business into a huge success. The market changes every day and competitors enter the market every other day. Knowing how to grow and adapt fast to the ever changing trends is important if you want your business to expand.
There are many effective business expansion tips you should know about if at all expanding your business is your major goal. Expanding your business is as scary as not expanding it at all. Choose once struggle; to expand or not, and run with it. We highlight a few tips that can help in your quest for business expansion.
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Know When to Expand Your Business
The first tip to expanding your business is to know the right time to do it. Timing is critical because expanding at the wrong reason can do more harm than good. For instance, when customers begin asking you to grow, it could be the time to take the plunge and branch out. If customers have to travel far and wide to get your products/services, that is a sign to expand.
The main goal of a business is to provide a solution to the problems that consumers face, therefore, if they have clients coming in from distant places, you could consider setting shop closer to them to give them your solutions at their convenience.
Another sign to branch out is when you have to ship out many products to different far away locations. This indicates that there is a market for your product in those places that you could take advantage of and provide your products to your clients, almost at their doorstep.
Check Your Cash Flow First
Expanding a business requires a steady and positive cash flow, as you will have to set up shop in the new place and this requires funds. Ensure that your clients pay you on time to achieve the positive cash flow that is required for expansion.
Business expansion requires a financial foundation that is strong enough to fund the new business premise before it picks up and starts paying for itself. Have a meeting with your accounts team and review your financial status to ascertain that you can handle the cost of expansion.
Focus on establishing a revenue source that is sustainable, especially if you are seeking for funds to expand. You can do this by directing your energy to the core clients that you already have and ensuring they become repeat clients. Sourcing for new clients is advisable alright, but repeat customers have the power to build you up. When a customer is satisfied by your product/service, chances are high that they will give a referral. Strategize around that.
Hire a Fractional CFO to Oversee the Expansion and Financial Health
Do you want to set up a financial oversight for your business and achieve your desire for growth and expansion? Well, hiring a fractional CFO to oversee the expansion and financial health of your business will work to your advantage. Most business owners handle their own bookkeeping to stay in control of their finances and to save costs on hiring an extra staff.
But you may ask yourself, is a fractional cfo worth it? The simple answer is yes! You see, successful and savvy business owners understand that finances are the lifeblood of any business that calls for professional management. When thinking of expansion, a fractional CFO can bring in their skilled professionalism to generate cost-value benefits and streamline operations to maximize profits and source funds for expansion.
A fractional CFO usually works beyond strict limits and works hand in hand with the management in making vital business decisions. A CFO advocates for the best financial interests of the organization, designs a safety net by mitigating risks, managing the inventory and working in the front line for diversification and expansion. If you are looking to expand, hire a fractional CFO to assess the risks and threats before you plunge.
Adapt to the Changing Trends
The ability to swiftly adapt in response to the changing marketing trends is a virtue that every business owner needs to cultivate. A swift approach to development, whether it is the product/service or the business itself is a sure way to grow faster. A good entrepreneur usually tests different approaches to see what works best.
Part of growth also entails failing at one point, but what happens after a major failure is what will determine your growth level, or speed. Testing different models and approaches gives you room to fail and learn from your failure. Pick yourself up, apply the lessons and catapult yourself and your business to the next higher level.
Look around you and be part of the movement, but only when it makes sense to you and your business. One way of adapting to trends to grow your business is by franchising. It is an expensive and complex procedure but rewards are pleasant and lead to faster growth. Do this by creating a system where others are allowed to replicate your business. You give out a license to your business model and allow other people to sell your branded products or services.
Keep a Keen Eye on Your Competition
When you desire to expand your business but have no idea how to go about it or where to start, your competition is the best place to start. Check out your top competitors and see what they are doing different and whether you can borrow the same model for your own business.
Check to see if they recently launched a new product line or whether they have branches in new locations. Check out the marketing strategy that they are using and learn from them. Keeping a keen eye on your competition will inspire you to grow your business in more ways than one. After all, there is no one way to do any project, you can employ different approaches until you understand your business needs then stick to what works for you.