Reasons to expand a business – Entrepreneurshipby Digital Marketing E. Online Marketing Professional
Regardless of whether you own a small or large business, it may be the time when you begin to consider expanding your business. Ultimately, the main reason for the expansion is probably to generate more revenue. However, there are more specific reasons why the expansion is the right choice for your business. Expansion may involve increasing physical positions or offering more products or services.
Establishing new markets
Expanding your business can allow you to establish new markets and reach a completely new customer base. This often occurs when companies establish a base of operations in a new country where there is a great need for their products or services or when they try to establish a more global presence. The creation of a new market can also reduce the effects of strict competition due to supersaturation in existing markets.
If your business started on a relatively small scale, you may need to expand to handle a volume increase. For example, if you opened a small restaurant and built your customer base where you have to turn people away or request them in advance, you may need to consider expanding to cope with the increase. The expansion can take the form of remodeling an existing structure, building a larger building or opening up additional places.
Expanding your business allows you to provide additional services related to your current operation. A hotel owner may want to consider adding a restaurant inside or next to his office to further meet the needs of his guests. A bookstore owner can add a coffee shop to allow customers to enjoy a snack or drink as they browse. A restaurant with a predominantly adult clientele can add a children's menu to create more than a family-oriented customer base.
Building a brand
Expansion helps establish the brand and identity of your company. Using methods such as franchising, a common business plan model among the well-known fast foods, it is possible to transform a small business into a larger business by selling the rights to open new offices to other entrepreneurs. In return, franchisees agree to follow the established operating procedures. With the opening of new locations in different areas, the identity of your brand is also spreading, which leads you to have additional revenue.
Created on Nov 11th 2019 14:27. Viewed 423 times.