More than 1 lakh businesses start every year, making it imperative for existing companies to keep up with the changing times and keep growing. There are various ways in which a business can expand. Some business expansion techniques could be as simple as capturing a broader customer base or even as big as making strategic acquisitions. Proper growth plans for businesses based on their long-term objectives can help business owners expand the business in a well-structured manner.
Here are ten tips for business owners to expand their business:
Widen your digital presence
With everything going digital, entrepreneurs must use this trend to their advantage. If the business is purely offline (physical presence only), business owners should consider going online as this will widen the scope of business and help bring in more customers.
Suppose the company already has a website and uses social platforms like Instagram, Facebook and Twitter to promote its business. In that case, it should focus on using digital marketing tools as part of its business expansion strategy. Spread the digital presence by optimizing it using SEO-friendly content. Consider e-commerce website extensions to expand the business if a product is sold. Most service companies like aggregators or fintech platforms also have apps that help them capture a broader target audience.
As business owners, it is vital to analyze and review the business model while focusing on the business’s growth plans. Every company needs to monitor their goals and track their results. If businesses have a social media presence, collecting customer data in the form of feedback can help business owners align their efforts to a suitable customer base, which will help company expansion.
This could also help business owners restructure their business model and make it more optimum for their customers. Products can also be enhanced to fit the needs of the customers.
For example, a company that notices a considerable difference between the number of people visiting their website and the number of people making an actual purchase could offer discounts to encourage a broader range of people to go ahead with their purchase.
Scalability is the key to expanding the business. Identify ways to produce the product in a larger volume in lesser time to increase the supply. This will give the entrepreneur more time to focus on marketing to increase the demand for the product. For example, simple machinery could replace the manufacture of some parts of any product made at home. Even in a service-related business, standardization and automation can help businesses send bulk emails faster or schedule their social media content. Automated time sheets and trackers could help optimize the performance of the team. These small changes will form part of a more significant business expansion strategy by reducing costs and increasing efficiency in the long run.
Identify New Opportunities
Every business needs to understand the customer journey and identify the customer’s requirements before and after they interact with their business. This will help business owners identify complementary business opportunities to expand the business by addressing the customer’s needs. This works perfectly as one of the growth plans for the business because the company will already have access to the customer base; they would essentially just be covering another part of the customer journey.
Launch discounts or freebies can be offered to the existing customers to encourage them to explore the new service or product added by the company.
Recapturing Existing Customers
An existing customer base gives the business stability. Once the customer base is established, businesses should focus on the quality of the customer service and increase customer loyalty. To recapture the existing customers, offer incentives in the form of loyalty programs and customer referral programs. Explore more opportunities to extend value to existing customers. This would help in business expansion.
Add more products or services
This could prove to be a good business expansion strategy if done right. It would also be an additional income and an independent vertical. Make sure the products or services added make sense for the existing business. For example, a photography service provider could also include selling photo frames or photo albums.
CSR (Corporate Social Responsibility)
Company expansion involves thinking a lot about customers. Another way to connect with the customer is by indulging in CSR activities. This will help businesses stay socially responsible and give back to the world. A key element of CSR is to get involved in activities related to the business. For example, a car manufacturer could fund a driving school that offers free driving lessons for aspiring cab drivers from economically under-resourced backgrounds.
Collaborate and Form Strategic Partnerships
Businesses can collaborate with other businesses that complement their services. Collaborations typically benefit both the businesses involved. For example, a business selling books could collaborate with businesses selling pens and offer combos for a few months. This works well as a business expansion strategy because it helps both businesses tap into the customer base of the other business.
When a business has built its brand value, further business expansion can happen through franchisees. A franchise is given to people who want to work with you but not as an employee. It can be given to people where the businessman can’t operate daily. For example, based on customer surveys, if there is a huge demand for the product in a particular geography where the owner cannot establish the business, it makes sense to give a franchise. Every month the products can be delivered to the person who has taken your company’s franchise. In return, a lump sum token amount can be taken from them.
Acquire other businesses
The most effective growth plan for businesses is acquiring other companies. But, first, business owners must try to get an insight into the competitors who are not doing well but have something good or unique to offer if there is something in your competitor’s business that attracts you and places them above you, like tech, workforce, customer base, etc. In such a case, acquiring can help in company expansion.
Acquiring other businesses that offer complementary services or another business of a completely different domain can also be done.
Business expansion requires a considerable amount of funds. Tata Capital provides a wide range of business loans with attractive interest to support business. So now, when you think, “how should I expand my business,” think Tata Capital.