When a business has reached a point where it’s going steady, and the income is regular, the next natural thing to do is to expand to the next level. However, expansion poses a dilemma for most business owners. The thought of not meeting the increased demand can easily lead you to opt for maintaining the status quo. There is a reputation to keep, which can easily be destroyed if you don’t meet the expectations. On the other hand, there is the thought that if you fail to expand, your competitors might overtake you and fill the spot that you were eyeing.
The truth is that there is no one-size-fits-all strategy for business expansion. It all depends on how much of a risk-taker you are. If it pays off, however, you realize that the risk was worth taking. Here are six things to consider when you want to take the expansion route.
Affordability
Just like starting a business, expanding requires money, especially if you plan to expand a jewelry store. There will be increased expenses such as hiring additional staff, moving to larger premises, buying products, etc. Even as you think of expanding, you need to consider whether you have enough money to fund the process and remain afloat with the existing business.
Of course, you can ask for more funding from investors or get a bank loan. However, you need to take it slow. Look for areas that you can cut back on expenses so that you don’t run on cash flow problems.
Is it the right time
Successful expansion needs to happen at the right time. If you move to expand wh
When a business has reached a point where it’s going steady, and the income is regular, the next natural thing to do is to expand to the next level. However, expansion poses a dilemma for most business owners. The thought of not meeting the increased demand can easily lead you to opt for maintaining the status quo. There is a reputation to keep, which can easily be destroyed if you don’t meet the expectations. On the other hand, there is the thought that if you fail to expand, your competitors might overtake you and fill the spot that you were eyeing.
The truth is that there is no one-size-fits-all strategy for business expansion. It all depends on how much of a risk-taker you are. If it pays off, however, you realize that the risk was worth taking. Here are six things to consider when you want to take the expansion route.
Hiring more staff
Business expansion means increased operations. You will most likely need to hire more staff to help with the influx of customers and sales plus other logistics. If you plan to open a huge store, you need to consider hiring more staff. You will work with clients to help them try the jewelry or simply by presenting them with different choices. You need to consider how many additional people will be viable for expansion. In addition, you need to have a plan on how you are going to hire them. If you are looking at hiring people from different countries, for instance, you will be required to be compliant with the tax and labor laws of those countries. In this case, hiring additional staff through an international PEO company, such as NH Global Partners, makes more business sense. The upside of this is that you can establish yourself in those countries without setting up legal entities.
Doing market research
It wouldn’t make any sense to expand when you know that there isn’t enough market for your product or service to guarantee expansion. Before you plan to expand, you must conduct market research. Assess your sales data to see if there is a market you are not reaching, but has demand for what you are offering. Like we mentioned adobe, if you plan to expand in a market where there is simply no interest in jewelry or luxury products, you should think twice about moving there. You could also be having a long waiting list, guaranteeing a need to expand on production. Such indications are a good sign that you have a ready market when you expand.
Marketing capabilities
You are probably a well-known brand in your current location. That means that you don’t really have to do vigorous marketing efforts. However, if you are expanding to other locations, you lack this advantage. In addition, it’s a foreign location that you know nothing much about. Consider whether you have the marketing capabilities to do location-based marketing.
Vendors
Expanding your business means larger orders to your current vendors. You need to assess whether they are positioned to meet your increased jewelry orders and at a good time. If you find that there might be challenges in matching your growth, then you know that you have a task of sourcing for other vendors.
Conclusion
Business expansion is a complex process that comes with its own set of challenges. However, much business savvy you are, if you lack the passion, handling the increased responsibilities can be overwhelming. Even as you assess your business, you need to make sure that you are personally ready for the expansion
