Every small business owner is interested in expanding their business at some point in the future. How can you convert a small business into a large one? Are there any special business growth techniques that can help me do this over time?
It’s not unusual for small business owners to ask the questions above. Taking your business to the next level requires hard work, patience, and discipline. There are many ways in which you can expand your business. In this article, we will take a close look at eight small business expansion tips that can help your business grow over time.
Take Advantage of New Technology
New technological changes can either help you expand your business or hinder your business expansion ambition. For instance, making proper upgrades to your business facility can increase productivity and expand your customer base. Recent studies show that small businesses do exceptionally well when they take advantage of new technological advances properly. However, it’s important for you to understand that being the last one to ride a new technological wave in your industry will give your competitors a big edge over you.
It’s important for you to stay abreast of new technological advances taking place in your industry. Choose the types of technology that are ideal for your business. Please keep in mind that you need to dedicate some of your efforts to fulfill the needs of the “early adopters.”
Intensive Market Research
It’s fair to say that big businesses will always control a corner of the market. Let’s look at Pepsi as an example. Pepsi was losing the cola war to Coca-Cola until they begin focusing their marketing campaign on a younger and fun-loving demographic. This strategy has helped them morph into a giant cola company.
Let’s look at another prime example. Red Bull only focuses on marketing their energy drink to a young and adventurous crowd. This strategy has helped them experience a great deal of success. Red Bull’s success put them in a position to own a Formula One racing team.
Segment Your Market for Positive Growth
Carving out a new corner of the market is a smart way of growing and expanding your business. Consulting with your local chamber of commerce and browsing the internet are two simple ways of learning more about your targeted audience. You should also make an effort to study your competition carefully.
Ask yourself the following three questions:
-Who are my competitors?
-What are they offering?
-Who are their potential customers?
-What areas are being neglected?
The answers to these questions can help you concentrate on a corner of the market that can help you generate profits for a long period. As your profits grow, your business will grow.
Create an Effective and Realistic Marketing Plan
Growing a small business normally takes time and capital. This is the primary reason why you should create an effective and realistic marketing plan. A solid marketing plan will make certain that you are not veering away from your expansion schedules and wasting precious capital on meaningless things.
In most cases, a solid marketing plan will outline everything from your target market to knowing your position in your market. It will also highlight your strategy for reaching your market and the costs attached to your marketing campaign. It would be a grave mistake for you to overlook this tip.
Funding for Your Expansion Efforts
Take a close look at your financial situation. Do you have enough capital to expand? Do you have enough capital to cover your payroll?
You should consider applying for funding from the U.S. Small Business Administration (SBA) if you need more capital for your business. SBA is dedicated to helping small business prosper, and they have financial programs that cover every need of small business owners.
You can turn to a bank, credit union, or an online lender. Online lenders such as National Funding and OnDeck offer working capital loans. Biz2Credit and Kabbage are two more online lenders that have an impeccable reputation when it comes to making loans to small business owners. Stick with your marketing budget so that you won’t make novice small business loan mistakes.
Diversity Your Product and Service Offerings
Make changes to your present product or service so that it’s attractive to a new group of consumers. If you like, you can add a new product or service. This could expand your business if your new product or service sells well. Diversifying your income will also protect your profits if your industry experiences a seasonal slow-down.
Diversifying is not as difficult as you may believe. You can import and sell new products, sell complementary services, or kick off a new consulting service. Using your creativity and understanding the needs of your market will help you diversify with ease.
Partner with another Business
It may sound weird, but partnering with another business can help your business grow faster. Let’s imagine your company manufactures high-tech golf balls that are designed to perform well on the course, but you don’t have a manufacturing facility and a distribution channel. You will be able to generate profits, but you can increase your profits if you network with other businesses in the community around you. In this case, you could reach out to an establish golf ball company that has a large customer base and successful marketing channels. You will have to share some of the profits with your new partner, but you will be expanding your brand. This would be a win-win situation for everyone.
Social media plays a big role in marketing these days. It can help you engage with your customers and increase your brand recognition. Social media platforms like Facebook, Periscope, YouTube, can help you market your product or service to a large audience at a minimal cost.
Merge With or Purchase Other Business in Your Industry
Buying another company in your industry is probably the fastest way to expand your business. This powerful strategy is used by giants like Google, Amazon, and Facebook. If you don’t have the capital to buy another business in your industry, make an effort to merge with it. Make sure you do your due diligence before buying or merging with another company.
Expanding your small business should be a top priority. It will take time and dedication, but you can do it if you take action. The tips above can help you reach this goal within a reasonable amount of time.