6 Effective Small Business Expansion Tips

By Jennifer Noble | Aug 14, 2018

In the long run, it is the expectation of every small business owner see its venture grow and expand. The big question is how will the small business will grow into a big one? Besides, are there some effective small business expansion strategies in place to expand the business further than its current status?

 

Several ways can be employed in the growth and expansion of small businesses. Below are six small business expansion tips that may aid your business to grow to the next level.

 

1. Addition of new products and services to your current mix

 

Such a strategy looks simple at a glance, but its execution may prove challenging. For business starters, it is essential to figure out the products and services needed by their clients as well as their willingness to pay for them. Next, is to figure out whether the products and services can be sold at a profit.

 

A smart strategy to attain this is proper market research before committing resources to the expansion of the new product and service. The market research needs to put strength on the customer demand for the new products/services, manufacture cost, delivery, and sales.

 

2. Employ unique sales and delivery channels

 

The internet forms a perfect example of how new sales and delivery channels can transform small businesses. Several companies have reinvented themselves to leverage online opportunities. Advertising online enables the firms to widen its market share by reaching a much broader audience.

 

Another unique and highly beneficial sales and delivery channel is direct mail. “Clients engage more with direct mail. Their view is that it is 21% easier to internalize a direct mail piece. Besides, they see it as more motivating to them compared to digital ads, and research shows that direct mail has a higher customer retention rate. Direct mail improves brand recall together with attaining greater emotional impact on the viewer”, explains Carlos DeSantos of EDDM USPS.

 

3. Sell your existing customers more products and services

 

This forms a flip side to the first tip: going deeper into your existing customer base. Begin by conducting a market segmentation analysis to pinpoint the customer segments more likely to buy to focus your sales and marketing strengths to these segments. The analysis enables division of your customers into segments depending on the chosen criteria. This allows an analysis of potential profitability when it comes to offering them new services and products. With such information, your sales and marketing resources will be well utilized.

 

4. Expand to new territories

 

The goal here is to market your existing products/services to new customers. The customer base can be in different locations, niches or segments from the current operation of your business. If your business is a retail or storefront business, the expansion will majorly involve establishing new locations in varied geographic areas. Such expansions need considerable investments in time and money. Therefore, thorough market research it is paramount to ensure the customer demand is worth the expansion in the new territory.

 

5. Target new customer markets

 

Most business entities target their sales and marketing strengths to given customer markets while focusing on demographics such as gender, location, and age or psychographics like values, interests, and activities. Small business owners should also ask themselves whether other customer markets that are viable for their products exist.

 

Reaching the correct target customers via the right mediums, at the right time, is an initial step to growing your venture into new customer markets. In a bid to expand to new markets, your advertising should be ramped up to these markets.

 

6. Business Acquisitions

 

Acquiring another business may form a fast route to expansion and growth. Merging with another company can double your business size overnight, leading to the increase of your sales and revenue significantly. Before a business merger, thorough due diligence should be done regarding any potential acquisition partners.

 

The due care should focus on the firm’s financial condition, clientele base, management strength and how feasible the current contracts are. In consideration of possible businesses to acquire, focus on a collaboration of the two firms should result in a combined entity that is stronger than either firms being on their own.

 

Simply put, the general market conditions and prevailing economic conditions should not hinder your small business from growing and expanding. Be sure to tailor your marketing, production, operation and growth strategies in line with your distinct needs.


 

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