It is the goal of every small business owner to grow his/her business into a global empire. Business growth is measured in terms of revenues, client base among other factors. A small business owner has to work out a smart strategy to ensure significant growth. The following are ways to expand your business:
This involves opening new branches in different locations. This will help you acquire new clients in different geographical locations. Opening branches across boarders will help you grow your business into an international brand.
ii) Vertical integration
Vertical integration means you control more than one stage of the supply chain. For example, if you own a cheese shop, you also own the dairy farm that supplies the milk and the hotel that buys your cheese. Your business owns the supplier and the consumer. This will help you grow your business upwards and downwards.
iii) Adding new products and services
Adding new products and services to your stock will increase your sales and generate more revenue for your business. These new products can be related to your main product. For example, an exercise book seller can add covers to the stock. This helps you target the same clients with more products.
iv) Penetrating deeper to your current client base
You should classify your customer segments according to age, location, interests, gender, etc. then focus on the market segment that is really interested in your product or service. You should then dig deeper into that market segment to increase sales and revenue.
v) Using new marketing channels
Making use of new marketing channels like social media and email marketing will help you reach out to new customers. You will increase your sales and raise your brand awareness.
vi) Acquiring a new business
Unlike starting a new branch, purchasing an already existing business can increase your revenues quick. By acquiring an existing business, you acquire existing customers and networks unlike starting a new business where you have to look out for new clients.
However, before purchasing an existing business, you should conduct due diligence to ensure good returns on your investment.
vii) Using a franchise model
Using a franchise model is a great way to expand your business to new territories. By granting a second party (franchisee) the right to use your brand name and trademark to sell the same products as yours, you relive yourself of management issues of the new branch. This will help you focus on more strategic issues affecting your business and future expansion.
viii) Strategic partnerships
Partnering with other companies can help you gain new networks and clients. Look out for companies and organizations which can partner with your company to pursue a similar course e.g. launching a new product.
ix) Making use of global platforms
Using global platforms like Jumia, Alibaba, Amazon and Airbnb is a great way to put your business before a big audience. These platforms get a commission every time a client buys your product through them. It`s a good way to expand your client base.
When starting your business, you should have your expansion strategy in mind and start implementing it right from the start. This will help you achieve your long term vision as an entrepreneur.