Just like with everything else, even businesses have to be nurtured and taken care of to grow. If you have been doing the right thing, then by now you will have come across a question that is in the minds of a number of business owners, “Should I expand my business?” However, if you do decide to expand your business, there are a number of things to consider like the ways to expand, financial and legal aspects, and a whole lot more.
Here are some ways on how you may expand your business.
1. Developing a new product or service
A new product or service offering is a good way to expand especially if you still want to operate in your current location or region. Ensure that the product you plan on developing meet the below criteria:
- It solves your customer’s needs
- It fits in with your company’s brand image
- It is financially viable
- It is realistically possible to be created in bulk
2. Starting new branches
You may start a new branch of your company within the same city or country or even abroad. This depends on the customer segment you are catering to and the product or service you are offering. There is no use of trying to open a branch in a city where most people will not even use your product. Starting a new branch will also require you to get an office space, office furniture, stationery, and hire more employees, among other things.
If you want to break into another country but do not want to set up a permanent office there yet, you may try going through the exporting method. There are two ways to export—the direct way and the indirect way. As per the direct way, you will have to first find a foreign buyer and then make all the arrangements for shipping your product abroad to the buyer. However, this requires a lot of time, energy, and risk which is why most companies start with the indirect way. As per this, you use an export intermediary to handle most of the things.
For financing any of these new ventures, you may opt for a business loan. Take into account the office furniture, personnel, machinery, raw materials, and other equipment you will need and how much will it cost. Also, make a note of how much time will it take to make a profit on these new investments. You may use a business loan calculator to calculate whether you will be able to repay the installments in a specified period of time. All the best and get set on this new venture of yours!