So, try to keep up with the latest technology and decide on which types of technology are right for your business.
But how do you grow a small business into a big one? There are many ways small businesses can grow and expand. Below are eight effective small business expansion tips you can use to successfully grow your business — divided into four segments.
Most big businesses have carved out their own corner of the market. Pepsi, for instance, was losing to Coca-Cola in the soft drinks market until it segmented the market and started focusing on a young, fun-loving demographic. Similarly, Red Bull gets its energy drinks in front of a young, adventurous crowd — its own segment of the market — and even owns a Formula One racing team. A marketing plan will ensure you are not only sticking to your expansion schedules, but also spending your marketing resources wisely and appropriately.
Typically, a good marketing plan will outline everything from understanding your target market to understanding your competitive position in that market and how you intend to reach that market, as well as the costs of how you are going to achieve your expansion goals within a certain timeframe. Analyze your financial situation to see if you have adequate funds to start your expansion efforts, and also to support ongoing expansion expenditure, such as the cost of maintaining new employees. SBA is committed to helping small businesses thrive and has developed a number of financial programs that address the various needs of small businesses.
Remember your marketing budget is an integral part of you overall grow efforts so avoid making common rookie small business loan mistakes. Tweak your existing product or service so that it appeals to the new group of consumers or users you have identified.
Alternatively, add a new product or service and start selling it to them. This way you will open up new territory and expand your business in a new direction. Chartered Professional Accountants, for example, could start consulting or offering financial planning services for business executives. You may also need to open another location to serve your new and existing market better. An alliance with other brands can help your business expand faster. You can survive alone, but you will only really thrive when you plug into the community around you.
In this case, you can reach out to a local branch of an established golf ball company like Bridgestone or other specialty ball manufacturer that has excellent client acquisition, distribution or marketing channels and partner with them to tap into their golf ball supply chain. TomorrowMakers Let's get smarter about money. CSR Compendium Touching lives of many. ET EnergyWorld A one stop platform that caters to the pulse of the pulsating energy.
Stocks in the news: All News Videos Photos. Indian IT giants join forces with startups 14 Oct, , Norwest Venture buys into Veritas 13 Oct, , IT companies look to hire senior executives to hard sell captive deals 10 Oct, , Steelmakers bet on demand for tinplate from packaging companies 9 Oct, , Especially in small business, not all owners wish to expand—sometimes because they started their small business precisely to maintain what they wished to have in the first place: Those who plan expansion tend to have a different vision of the business, one in which "smallness" is not in itself a goal but a necessary starting point.
Others plan to expand because the very logic of the business indicates that a larger size is desirable to achieve the full potential of the enterprise. Every situation is unique, of course, but in broad strokes the methods will largely involve one or the other of the following categories of actions: These strategies are listed roughly in the order in which most small businesses consider them.
As we move from 1 to 4, each step is more difficult and requires more comprehensive changes and larger investments. Each strategy, of course, implies additional alternatives some of which may be quite risky. By way of an example, the first choice, to sell more of the same , may involve one or a combination of the following: In one of the few recent articles on planned expansion, Julie Monahan, writing in Entrepreneur , lists seven expansion strategies with very similar characteristics.
These are 1 introduction of a new product, 2 taking existing product to a new market, 3 licensing the product for others to make, 4 starting a chain, 5 turning the business into a franchise, 6 growing through acquisition or merger, and 7 seeking foreign markets. In essence, planned expansion—particularly one based on more complex strategies—is essentially the same as starting a business from scratch with the exception that a running business provides the owner with a minimum base from which to start.
Important administrative structures are already in place—even if they have to be expanded. For these reasons the same financial, planning, and business skills are needed as were necessary to found the original business. On the whole business owners who stay closest to their experience will have the fewest regrets. Along with much positive reinforcement, unexpected growth also brings danger: Unless kept in check, it may lead to careless decisions and a temporary relaxation of the very disciplines that made the business successful in the first place.
For this reason, management experts counsel caution when sales suddenly surge. Furthermore, unexpected growth is a challenge that may be unavoidable: Growth must be managed. Paul Hawken in his popular book, Growing A Business [Simon and Schuster, ], says that problems are normal to business.
The chief challenge presented by surging growth tends to be financial. Capacity may have to be expanded and money must be spent to purchase inventory way above normal levels.
A business strategy in which growth is obtained by increasing the number of stores in which customers can buy a company's products and services. Unlike relocation, business expansion entails opening up new stores in different physical locations while still maintaining the current business locations. Business expansion is a stage of a company's life that is fraught with both opportunities and perils. On the one hand, business growth often carries with it a corresponding increase in financial fortunes for owners and employees alike. This might not be your best choice for business expansion, but it's listed first here because that's what often comes to mind first for so many entrepreneurs considering expansion.