If you’re planning to expand your business, make sure you do your research and ensure there is demand for your products or services. Are you thinking about adding a new product, relocating to larger premises, or expanding your geographical market? What is the most viable way to achieve business growth and increase profits? Whichever way you look at it, you must be prepared, not only for the impact that change could have on your business but also the impact it could have on you and your staff.
Examples of how you might achieve business growth:
Increase your share of the existing market by offering more competitive pricing and/or increasing sales transactions with your current customers.
Take your existing product or service into new markets by targeting different geographical areas and/or increasing your channels of distribution.
Remain within your current market but make changes to your existing products and/or add new but related products.
Take a high-risk strategy by introducing a brand-new product to a new market.
Expanding your business will undoubtedly mean increased overheads and expenditure, so don’t underestimate the amount of additional funding you may need. For example, if you choose to increase production, you may also have to acquire larger premises to accommodate the increase.
To bring in the much-needed capital, you could attract new investors, or you may be able to secure a business loan from your bank. Whatever way you plan to raise the funding, it would help to be armed with a new business plan. The plan should contain details of your current business success, how you see your business growing in the long and short term and provide business and financial projections. This will demonstrate to potential investors, not only the future viability of your business but also that you are competent and likely to bring a return on their investment.
There could also be unwelcome consequences for you and your existing staff when expanding your business. Have you considered how will they cope with a new staff structure when you hire new employees and how will they fit into this ‘new’ company? Tensions may arise if they resent any perceived ‘unfairness’ or upheaval in their lives. What about you? If you are currently a hands-on manager, will you be happy to hire someone else to replace you while you take on a leadership role?
Achieving business growth and profitability may involve experiencing a host of changes, including a different lifestyle, so be prepared for any eventuality.