Many businesses are faced with stagnation in growth and also to gain new customers within their current market. Although these challenges can be painful, this can also be a chance to expand your business.
In short, expansion of business is when a business is able to expand into new markets or build an increased client base. It could be as simple as establishing the franchise, hiring employees and expanding into new markets.
An effective expansion strategy is crucial to grow your company. The brand will only grow by having a stable client base, a quality of product offerings, as well as a strong marketing strategy. This is where a business expansion plan comes into play.
We’ve collected and reviewed nine strategies for business growth that are top-of-the-line for business owners and entrepreneurs to consider in order to attract new customers.
The three initial tactics (conduct market research as well as spend money on research and development and find talented individuals) are the foundation for the remaining six strategies. Make sure to concentrate on these areas prior to moving on.
1. Perform market analysis
Before you decide to implement a growth strategy be aware of external influences that can impact business goals. Understanding trends of competition and customers identifying areas of potential expansion, and knowing the local market’s conditions are essential to expanding in a new market.
A SWOT analysis is an effective method that even the most prestigious businesses utilize during times of expansion. It requires the business owner to think about their business’ strengths, weaknesses potential threats, opportunities, and weaknesses. If you are a startup, new business, or any other kind of business SWOT analysis can aid you in understanding the essential elements that your expansion strategy should contain to ensure success.
An analysis of SWOT can aid you when:
- New initiatives are being explored.
- The updating of internal policies
- Modifying the existing plan for expansion
- Conducting annual or quarterly review
2. Spend money on R&D
The process of researching new product concepts and evaluating prototypes in different markets is essential. This allows businesses to determine which idea has the greatest chance of success prior to making any financial investment in research and development projects.
Innovation is the key to play. Think of once-thriving companies such as Kodak, Blockbuster, and Toys R Us. Each of them was once an industry leader but did not invest in innovation after the market changed.
Avoid the pitfalls of reward by rewarding innovation and thinking out of the box when it comes to new products that will make your business more successful in the market you want to target.
After investing in product research, you can flesh it out and try prototypes in both the existing and new markets. Are you a café owner who wants to establish your brand in the United States? A unique coffee drink created from local ingredients may not work in a brand-new market where those ingredients are rare or unobtainable.
3. Employ talented people
Employing people with exceptional skills and professional experience is a crucial factor in growing your company’s reach.
Maybe you’d like to extend the reach of your social networks to a specific market or strengthen collaborations to acquire new customers. The hiring of specialists in your niche can help you design the marketing strategies that you will implement to expand your business.
Take a look at the Key Performance Indicators (KPIs) to help onboard new hires. A few KPIs can help you comprehend what you’re looking to find in workers and what this worker must accomplish in order to be successful. For instance, you can evaluate their contribution, abilities as well as the contribution to the company. This can help you be neutral when you are deciding on whom to choose.
If you’re looking to include new members to your growing team You can find the right people on Upwork to work in any aspect of your business.
4. Expand your product line
The addition of new and exciting items or offerings can allow businesses to expand rapidly. Develop your product offerings by introducing products that are compatible or closely connected to your current offerings. These could be appealing to existing customers as well as new ones, providing an opportunity for growth that is unique.
Let’s revisit our coffee shop model. The current offerings include mochas, lattes, and espressos. However, you might notice a trend within your current market to sell matcha-flavored cocktails. The addition of these drinks to your menu could entice your existing customers, and also draw the attention of potential customers, resulting in two growth opportunities.
5. Expand the reach of your business
The owners of businesses have several options for expanding customer reach and engagement, ranging from social media to targeted advertisements.
But, you’ll have to think about how much you can afford and the resources available before deciding the best way to broaden your market’s coverage. You may decide to concentrate on one or a few of the following in order to reach the desired result:
- Wider distribution within the region. Consider broadening your geographical coverage. Move from one shop to two, or take your small-scale company online. If, for instance, you’re selling baked items at farmers markets and festivals, you could try contacting local grocers and larger chains to find out whether they’re interested in the idea of forming a partnership.
- Marketing campaigns aimed at new segments. When your ads get old-fashioned or out of date and outdated, it could be the right an ideal time to engage an artist or an advertising professional to revamp or design new campaigns. Take note of what your audience are interested in regarding the current issues and trends, and make use of that information to appeal to their desires.
- Exploring potential export markets. Maybe it’s time to expand your horizons and start exporting your best service or product. Perhaps you’re one of the companies that offer products that are in high demand. Utilize the SWOT analysis to determine if expansion into the export market is the right choice for your business and whether you have the cash flow.
- creating a digital identity. In today’s market online, having a presence on the internet is essentially required to promote their products or services. Be sure to have a variety of channels for your existing and new customers to connect with you. Also, attract social media users by presenting captivating and creative images as well as interesting and informative texts. If you’re trying to appeal to a younger demographic It could be beneficial to utilize the money you have to hire a specialist on the latest platforms, such as TikTok as well as Snapchat.
6. Introduce fresh technological advancements
Implementing new technology can allow businesses to increase efficiency and revenues while reducing costs and increasing ROI (ROI). Businesses can adopt innovative technologies for expanding their business through a variety of ways such as:
- Cloud technologies can enable your team members to work remotely. This reduces travel time and lets them complete projects from any place.
- Big data gathering can give companies with information that will help them make better decisions when it comes to business growth.
- Artificial Intelligence (AI) can suggest new products to shoppers on the internet and even replace live operators in customer service.
- A 3D printer is a tool for creating prototypes in the development and research phases of business expansion.
7. The focus should be on diversification
Diversifying a company’s products or offerings can be advantageous and can lead to stability and growth. The coffee shop model could be expanded and include a bagel café offering a variety of possibilities to grow (sandwiches and take-out orders business lunches, and so on). This is an example of a smaller scale however it could be a basis for the world’s largest diversification campaign.
Similar to expanding the range of products you offer (adding the addition of new or complementary products or services to your company’s offerings) and research and development of products, market research and risk assessment on your checklist of diversification is essential when you are expanding your products. For example, a risk assessment can assist you in evaluating the various outcomes and formulating a an effective plan for overcoming possible negative outcomes.
8. Encourage international growth
Larger corporations that require rapid global expansion usually develop plans for global expansion. This could include information concerning the integration in foreign currency options for translation, and getting permission to operate on many international markets.
It could also be an ideal time to think about whether hiring foreign employees is a good idea for your company’s expansion. The outsourcing of some tasks could be a fantastic method to tap into international markets, gaining the advantages of having diverse teams and ensuring that your product’s quality is maintained across different places.
Before you begin an international expansion plan, make sure you ensure you are aware of the cultural differences and the diverse backgrounds. Learn to train your employees to respect people across different nations and employ technology to facilitate contact with the people around you. These judicious strategies for international expansion could help to ensure a positive change going forward.
9. Discover new markets
You’ll need to find and pursue new markets to allow your company to grow. The diversification of your customers as well as reaching new markets can boost the amount of revenue you earn increase your growth potential, and increase the number of customers you have.
In contrast to diversifying your product offerings and increasing your market reach the business growth strategy involves analyzing new markets using existing products, a straightforward method to boost sales.
If you are a coffee shop owner looking to start a business it could mean traveling to other cities to attend Food truck rally events, pop-ups or other food trucks to determine the interest of potential customers in your product. For larger companies that are looking for expansion, it might mean looking into expansion in the Midwest or even the Northeast.