The dream of many entrepreneurs is, at some point, to expand the business and further stimulate the company’s growth.However, many find it difficult to find an ideal expansion model that is viable for their structure and financial reality.
If you see yourself in this scenario, know that with good planning it is possible to take this new step in your company and increase sales.To face this new challenge, check out these four tips that will help you expand your business:
Study the market
You certainly already know your segment very well. Still, doing a market study is necessary to avoid risks, be more assertive and increase sales.Consider evaluating elements such as your customers’ loyalty and behavior, if they tend to return, this is a good sign to expand your company. You can take help of yje Customer Success Survey there.
The growth of your industry is also an important factor to be taken into account. In other words: questioning the feasibility of expanding is the first step.
Do an internal analysis
After studying the external factors, it’s time to look inside your company. Average profit over the past three years is an issue that must be observed carefully, as it indicates the financial stability of the organization.
In addition, you also need to assess whether the company has sufficient structure for expansion, such as, for example, inventory volume, personnel, support.
An ERP system can help in decision making, as it provides important data that will help in the management of your enterprise.
To learn more about the subject, check out our articles on management systems on the blog:
Choose an expansion model
After this analysis, it is time to decide how to expand your business. There are many ways for you to increase your company’s sales, including:
Opening a branch:
This is usually the first option that comes to mind, but it should be evaluated carefully. It is important that the company has a consistent profit and has been showing steady growth over the past few years.
Setting up a franchise system:
If your brand is well established, a good alternative is to expand through franchises. Thus, you do not assume the investment expenses.
Licensing your product:
Selling the license to manufacture your product can be a good way to increase profits. It is an alternative to the franchise system, since it exempts you from extra costs and you profit from royalties paid by members.
Acquiring or merging with one company:
Buying or joining another company is a good way to gain market share and increase the reach of your company. However, this is an investment that must be carefully evaluated.
Setting up an e-commerce:
Expanding your business to the virtual environment is a simpler, faster and more economical way to increase sales.
There are a number of tools and resources to make this project viable, but be aware: although this expansion model is more practical, it also requires planning.
Perform strategic planning to increase sales
Expanding a business is almost like starting a new venturethe difference is that you now have more luggage.Therefore, making a strategic plan is essential for its expansion to be successful. Updating your business plan is also an important action in this process, as well as creating a good marketing plan and financial projection for your company.
