Tips to Expanding Your Business

BusinessGrowth and expansion are key goals of every business person. However, expanding any business doesn’t come cheap. Scaling a business requires considerable efforts. It means working on your sales and marketing to expand these two to the limits. It means understanding taxes and all compliances. To scale your business to greater heights, you must get several components right, including hiring the right team. If you are struggling in your business and you are looking for ways to scale your business, there are sure ways to go about it.

 

Acquire new products and services

This is a strategy that sounds relatively easy, but implementing is not all rosy. First, you need to figure out what products and services your customers are interested in before you can acquire them. Figuring out what your customers want may not come cheap, as you might be required to conduct market surveys to ascertain what is good for them. Ask your current customers what they think about a certain product, and how willing they would be to acquire those products. Your market research needs to focus on the demand for new products or services in the market.

 

Sell more products to existing customers

A flip side of the first strategy is to sell more products and services to existing customers. It means penetrating deeper to the current customer base. Start by carrying out a segmentation analysis of the market, to identify which customer segments are more likely to buy your products, should you decide to level up. You can do an analysis that divides your customers into different segments based on the specific criteria you choose. Analyze any potential profitability that comes from the products or services you want to sell them.

 

Expand to new territories

Business expansionThe idea of this strategy is to sell your products or services to new markets, new customers. These customers can be in different segments as well as locations. If your business deals with retail, expanding to new territories means opening new locations at different geographic regions across the country. Such type of expansion will require a significant investment in terms of time and money. When thinking of expanding to new territories, think about how your presence will be felt in that new location and make yourself recognized by upping your marketing.

 

Target new customer markets

Most businesses place a target on their sales and marketing efforts to specific customers based on demographics such as gender, location, age among others. However, there might be other customer markets that are viable for your services and products. You need to reach the right target customers using the right medium. You need to ramp up your advertising and marketing to these customers so that they can see other benefits associated with your products.

 

Acquire another business

Another important aspect of expansion requires acquiring another business that might be labeled a competitor or a promising one. Acquisition and merger play a key role in doubling the size of business overnight, expanding your sales and revenue. However, due diligence is required to achieve a successful merger and acquisition. Focus on the financial state and potential of the company you want to acquire.

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