One of the most prioritised objectives of any business is growth and expansion. An ability to expand the business operations along with the growth in customer base, is a highly desirable trait for any business. Business expansion comes in a various forms. Hiring for fresh talent, opening at a new location, entering a new market, entering into a joint venture, are some examples among various others.
Though business expansion is an indicator of prosperity, if done incorrectly, it can prove to be quite hurtful to the existing operations and finances of the organisation. It is advised to tread with caution when considering any form of business expansion.
With that, here are some key factors to consider for business expansion.
Weigh all your options
Before deciding on a form of expansion, consider all the available options, thoroughly. Lay out the pros and cons of all your options and analyse them in depth. Seek the help of consultants and professionals to guide you towards the optimal way to expand according to your current situation and needs.
Keep a check on your finances
Keeping a close eye on your finances will help direct your decision. This indicates the importance of financial management. Forming a budget and sticking to it, will lead to better scaling. Financial management will also allow you (as a business) to estimate the timing and the extent of expansion.
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Ensure current clients are unaffected
Your expansion should not stand in the way of catering to your current clientele. A drop in quality will soon spread the word, and the motive of expansion will be left moot. Maintaining a personal touch for existing clients will, in fact, help the business expansion. Leveraging your current clients and your network will help boost the scope of expansion. It may also present options you had not investigated, yet. Networking is important at every stage in the business cycle.
Conduct and analysis of your strengths
Apart from understanding your financial strength, it is also important to utilise your strengths. These are the USPs that helped your business reach a pinnacle where expansion seems viable. Start with consolidating these strengths. Make them a part of the foundation of your further goals and objectives. Involve your team and ask for their feedback on how the business can leverage these strengths to promote the intent of expansion.
Recognise your limits
As a business, your resources will be limited. Going overboard with any resource could impact the expansion, along with creating disturbance for the current business operations. Inclusion of a separate business plan for expansion, is thus necessary, and the expansion should be treated as such. Knowing the limitations on your resources and finances is critical to successful expansion.
Prioritise creativity
When considering expanding your business, why not get innovative? Whip up new strategies that work for you, new ideas to run the new unit and fresh guidelines that align with your business’ long-term goals. This is the time to involve the team and get them cracking on fresh ideas. Creativity and innovation should be considered an integral part of your business expansion.
Analyse risk
Risk is inevitable (whether in your current operations, or in the intended form of expansion). But including the possibilities of risk in the plan, will allow you to strategize for it and stay on top of any threats to the growth of your business. Risk management eases the process and generally helps leaders narrow down the number of viable options.
Maintain your organisation’s culture
Among all the factors to consider for business expansion, organisational culture stands strong at the top. It is the culture that determines whether the business moves in the intended direction or strays from it. It is the current culture that shall promote the move. And hence, maintaining it along the way becomes crucial. Set your priorities right and do not lose focus of your internal agendas.
While it can be overwhelming for most businesses, large and small alike, to expand as the need for their product or service grows, it is important to not lose sight of what matters and the reasons that put the business in the position to grow. Employees and clients must still be prioritised.
Growth is an important objective for all organisations, and the above factors will surely help in making the right decisions.
Are you looking to expand your business? Why not opt for a workshop or a basic consultation to analyse the scope?