Key Points to Expand Your Business
Making a business grow and walking with one’s legs is a great dream and at the same time a great challenge for traders and entrepreneurs. Selling well, gaining market space and gaining new customers are positive indicators that encourage micro and small entrepreneurs to focus on expanding their business. http://the-fifth-hope.net has more notes
But what many of them do not know – or do not pay attention to – is that the growth of a company also depends on other factors, such as the organization of cash flow and the investment in employees and production processes. When done on time or in the wrong way, this step can be larger than the leg, bringing more problems than benefits.
In this post we have put together a series of tips and guidelines that will help you get organized to expand your business on time, in a healthy and sustainable way . Check out!
Is your company really ready to grow?
Before making any decisions, visualize all the aspects that involve expanding your business and ask yourself: Is my company really ready to grow?
To answer this question you need to have a minimum structure required. So, make an analysis around three main points:
Is your business in danger of disappearing over time? Take into consideration the sector in which you are inserted and the growth that it has been having in the market. If it is positive, your company will probably follow that flow.
But be careful not to confuse ascension with fadism. Therefore, it is best to complete one or more cycles that show that the business really is perennial. For example, if you opened a gelateria, the ideal is to consider the period of two or three seasons – from one summer to the next – to make sure that the business will be firm.
Surely you have heard that customer loyalty is much more difficult than winning new ones. And it’s true. A solid base of satisfied customers with your product, service or service says a lot about the robustness of your company. At this point, expanding your business, more than a will, can also be a necessity.
Remember that keeping your customer roster up to date can help you a lot up there when your business is already bigger.
To put the expansion of the business into practice it is necessary to have a very well structured financial planning . Organize your cash flow , analyze the risks, and evaluate current and future profits. This will help you identify what investment will be needed and how long you will have the return on it.
It’s time! What are the first steps?
Now that you know that your company is ready to grow healthily, you can begin to chart your way to expanding your business . But how to do this? The first step is to identify which expansion model best suits your needs. Some options are:
In the franchise system is the franchisee who assumes the risk of creating the venture. In return, he receives the training and work model that were developed by the matrix.
To get started, you need to have an analysis of your company’s legal status and well-planned strategic planning. In addition, to have a standardization of the quality of your product or service, it is very important to define your market position, value of your brand, factors that differentiate you from the main competitors and what your business model.
Because it requires more planning, dedication and a very efficient management, this expansion model represents a big step. Only the company’s high billing does not justify such a decision. In addition to producing more, it is necessary to generate enough capital to sustain the new unit. In some cases, for example, it is necessary to recalculate the value of the final product to ensure return on investment in less time.
One tip: Keep all finances separate. That way you can measure the results and prevent the affiliate from interfering with the financial health of the business as a whole.
New sales channels
For those who are not yet ready to open new units, expanding sales channels is also a way to expand their business. For example, if you have a beach fashion store, an interesting option could be to open an e-commerce or get commercial representatives to take your product to other places.
Do not forget that from the moment you add a new business model to your company, all financial and operational management should be re-evaluated.
Increase in product variety
A simpler way to make your business grow is to complement the options available to your customers and extend the products offered. Thus, the old customers start to invest more and there is the possibility of attracting new ones. Another advantage is that the lags caused by periods with less movement tend to decrease.
How to organize for a fast and healthy growth of your company?
Once you decide what your company’s expansion model will look like, it’s time to get organized to put the plan into practice.
It is common that, at that time, the entrepreneur sees the need to increase his income so that his projects can get off the paper. Increased number of employees, improvement of production processes, purchase of more raw material and investment in a new space are common expenses during the expansion.
Taking into account that strategy and planning are already well aligned at this stage, contracting credit in the right way can be a good solution. Thus, it will be possible to invest in the growth of your business without compromising your financial health.
So, did you like this article? We at BizCapital are here to help business owners who want to see their business take off! Keep an eye on our blog and check out other tips on the world of entrepreneurship.