Business First Family Business, Accounting, Finance, Investing, Marketing And Management
Scaling a business is no walk in the park. But if any growth is to occur, you need to take the challenge head-on. Starting off, that might mean wearing several hats while building up the funds to outsource your work. It can mean buying equipment, taking the time to understand taxes, or interacting with customers to project a trustworthy business image. All of these contribute to growth, but their outcomes are not equal. Some work better than others, providing significant long term benefits. To help you make the right choices, here are 6 smart strategies for expanding your small business.
Diversify
It may be possible to add a new product or service to your offering. This happens after conducting thorough market research to determine what customers want and whether the price they’re willing to pay for it is profitable. Generate some ideas and pitch them to your target audience. Not only will you receive valuable feedback, but you’ll also show that your business cares about its customers. Remember to factor in the cost of creating, marketing and delivering your new product or service.
Move Out
Another solution that market research can potentially help you build a customer base in an area outside of where you currently do business. Tapping into it doesn’t necessarily have to mean opening a location there, as this can prove far too expensive. Shipping your product or providing your service online is the alternative. Remember to consider whether you’ll be facing any competition before attempting to get your slice of the pie.
Create A Loyalty Program
If you want to sell more to existing customers, which costs a fraction of what it does to acquire new customers, then loyalty programs are the way to go. Providing a compelling incentive to spend more money with you will not only keep current customers coming back, but also attract new ones who are looking for better value.
Get Assistance
The main challenge with any form of expansion is the cost of making it happen, but this shouldn’t be a roadblock on your path to growth. In fact, there are many ways around it that in and of themselves have long term benefits. This includes taking out a loan. Of course, a loan can ease your cashflow crunch and keep you moving forward steadily. It’s also worth noting that paying it back on time is conducive to your business credit score, which plays a major role in the terms of your future contracts and eligibility for essentials like insurance.
Merge And Acquire
Mergers and acquisitions are a major smart business strategy. Recent events have pushed many businesses into rough waters, which has motivated some to list themselves up for sale and at a much lower price than would be asked in more stable times. This has opened up a new avenue for rapid growth and expansion, giving businesses in better positions the ability to double in size overnight. Of course, acquiring another company is not something to be taken lightly. Your due diligence is necessary to ensure that you’re making a wise investment. Look out for businesses that can create synergies with your own.
Go Global
The internet is home to a myriad of opportunities for you to expand your business. For instance, if you need assistance with work but can’t afford to take on additional staff, you can outsource through a platform like Upwork, Fiverr, or Freelancer. These platforms give you access to a global network of talent with a large range of skill sets. Plus, you will receive staff and talent that can offer experience that you may not have. In addition, you can also use digital marketing methods to reach more customers on a shoestring budget. Of course, going global in your team efforts will help expand the capabilities and talents of your business.
Be Customer-Centric
To be successful in your new business venture, you need to make your customers the central focal point of your organization. Businesses that are customer-centric have higher rates of retention, customer satisfaction, and higher overall sales. To emphasize your commitment to your customers, research and offer the best loyalty programs, affordable prices, and high-quality customer service support. At the same time, be flexible with returns, exchanges, and other customer accommodations. As you prepare to launch your new business venture, be sure to make customers a central point of your organization.
There are endless ways to expand your business in today’s environment. It’s up to you to identify those that are most beneficial to your long-term success. Think outside of the box and see what you can come up with.
