Any expansion needs extremely careful planning and you have to ask yourselves a number of questions. Some of these questions may relate to:
- Newer opportunities
- Review of prices
- Cash flow
- Customer service
One of the most important things that you should do before deciding to expand is to create a business plan, based on which you can make a detailed analysis of your alternatives and the options available. Undertake a study of the resources available and required, and the skills required and available before you can plunge headlong into the project. Another important thing that you should not forget is manpower planning – existing and required and how you can ago about it.
If you have considered the above points and have decided to go in for expansion, here are a few tips for the expansion and the areas that you will have to work on:
Make a business plan and correlate it with the plan you had made when you started the business. Go through the plan thoroughly and understand all aspects related to all the important parameters.
Make a SWOT analysis and analyse your strengths and weaknesses, and review your opportunities and threats. Based on these factors, review your business plan, and make necessary changes wherever needed.
Make a study of your customer database and identify your top customers and renew your relationship with them. Obtain referrals from them for new customers. Target new customers, in your area and in the newer areas, which will help you expand your business. You can diversify into new market areas through strategic marketing applying new pricing, marketing or service levels. At the initial stage you could consider selling your products at a lower price, though of course, with lower profits.
If you find that all factors are in your favour, then you can go ahead with the process of expansion. Do not make the mistake of being hasty, but go slow and steady. If at any stage you find yourself being bogged down or run into trouble, take professional advice.
When you are thinking of expanding your business there are many factors that you have to take into consideration. You will have to consider factors related to finance and marketability, amongst others. And, it is also possible that your overheads and other expenses may go up, and your profits may not go up in the same proportion as your overheads. Read the article to get tips on business expansion.
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