Business expansion is one of the top ways that entrepreneurs grow their companies. Expansion can come in the form of opening up new business locations, merging with a former competitor or even introducing an innovative new line of products and services. Naturally, expanding your business will take some time, effort and money.
We’ll get to the money portion of the expansion process shortly. But, first, let’s discuss why you should put time and effort into your plans to expand.
Expansion is bound to significantly grow your customer base.
It should probably go without saying that the vast majority of your customers are likely those who live in nearby areas of your place of business. By expanding, you automatically open your business up to individuals who otherwise would have never heard of you. This is especially true if you decide to expand your brand outside of Canada.
“Expanding your business can allow you to establish new markets and reach an entirely new customer base,” says Chris Joseph on Bizfluent.com, “This often occurs when companies establish a base of operations in a new country where there is a great need for their products or services or when attempting to establish a more global presence. Establishing a new market can also reduce the effects of tight competition due to oversaturation in existing markets.”
Expansion helps to keep your brand relevant.
As mentioned earlier, you don’t necessarily have to open up a new location to consider your brand one that has expanded. Sometimes, expanding your product line can pave a path to higher revenues. Are you selling products that are becoming obsolete? With so many advances in technology rapidly hitting the market place, it’s important to stay on the cutting edge. Needless to say, electronic stores aren’t selling VCRs anymore!
On Business2Community.com, Robert Cordray highlights the importance of expanding to stay relevant. “The products people are buying now could very likely lose their relevance down the road,” he writes, “In fact, it could even happen in the blink of an eye. By constantly developing new products, your company won’t suffer when the inevitable occurs.”
Expansion will grow your company’s prestige.
Your “brand” is a lot more than your company name and logo. Your brand refers to the impression your company gives the members of the general public. When you decide to expand your company, you will grow your company’s reputation. As Joseph notes, expansion helps to further establish your brand and identity.
“By using methods such as franchising, a business model common among well-known fast-food restaurants, you can turn a small business into a larger operation by selling the rights to open new locations to other entrepreneurs,” he informs, “In return, the franchisees agree to follow your established operating procedures. As new locations open in different areas, your brand’s identity also spreads, which leads to additional revenue for you.”
Allow us to help you expand your business!
Earlier, we mentioned, that we’d discuss the money portion of the expansion process. Simply put: you need money to expand! At Synergy Merchants, we’re happy to have helped numerous Canadian business owners get the extra working capital they needed to expand their brands. We can help you too!