In a Global Banking and Finance Review, it was discovered that 42% of UK companies are more inclined towards expansion. Better yet, this group of businesses prefer to extend their services overseas. For entrepreneurs, business growth and expansion leading to maximised profits is the ultimate goal for operations. While some failed at it, others have succeeded. So, what advantage did the latter have over the former? Here are tips to guide you as you consider expanding your business.
Introduce innovative products and services to an existing mix
Even in a lacklustre economy, you can still be innovative enough to grow your business and end up beating competition while at it. Nobody wants to struggle to grow a business; introducing new products and services to your existing mix can be a daring business move, especially when you have no idea how the market will receive it.
As a precaution, you must first conduct market research to determine what your customers want. It’d be best to also research into how much your existing market is willing to pay for a new product or service, as it’ll be ineffective to decide by yourself to introduce a new product without the assurance that it’ll be accepted.
Some notable corporate giants failed terribly with new products they assumed would beat the existing competition. For example, in 2006, Microsoft hoped to beat Apple’s iPod with the introduction of the Zune. They however failed to research the iPod’s weaknesses instead of just outdooring a product to compete. The result? Zune wasn’t a bad product per se, but it failed abysmally. Other notable examples are:
- The HP Touchpad – hoping to rival the iPad.
- Amazon Fire phone – ventured into becoming a smartphone powerhouse.
- Cosmopolitan Yogurt – The Cosmopolitan Magazine hoped to veer into edible products.
The main idea behind franchising is to expand into new territories. Admittedly, it’s a pretty expensive and quite complex procedure, but the benefits are immeasurable when done right. Franchising is only an excellent option when you have a recognised brand. More so, you must be convinced about your business systems and how effective they can be if legally replicated by other people in different places.
Usually, under a franchising model, you permit others to adapt your business models as they sell your branded products. Franchise Direct offers you a consolidated platform through which you can find a plethora of franchise opportunities. Another thing worth mentioning is that franchising adds more credibility to the brand, and benefits from royalties and fees.
Consider networking as the intricate weaving of different threads that make up a fabric. In business, networking cannot be overstated; the business relationships you keep with clients (existing and potential), colleagues, other professionals, etc., will inadvertently become the support your work needs. The purpose of networking is to gain significant insight into what makes a business successful.
Furthermore, by your association with others who succeeded in growth and expansion, you stand a better chance of learning valuable lessons first-hand. Did you know that regular business networking elevates professional and personal profiles? Ultimately, that contributes effectively to your business growth.
In due time, your diligence will pay off as your business reaps fruits. While expanding your company, avoid losing sight of current operations. Additionally, be mindful of internal and external influences that could hinder your business expansion plans.