The goal of any business is to increase sales and expand, bringing in more profit every year. That is the basis of our entire economy. However, it is difficult to expand for many companies. Whether they aren’t bringing in enough money or are having a hard time finding the personnel to fill out your team, growing at the right rate is a tough balance. A lot of companies expand too soon and become a flash in the pan. You don’t want that to happen. While overnight success is nice, a steady growth is better for the longevity and posterity of the business. Below are five things to keep in mind as you expand.
Keep Your Overhead Low
Even as you expand your business, it’s essential to keep your overhead low. Don’t take on too many employees or commit to the rent for spaces you don’t know if you will be able to afford and still turn a profit. As you grow your business, it should be incremental. When you are making enough profit to put some money back into the business, you should. But you should also put care into the process by limiting the amount of money you are paying every month. Expanding is part of any business that wants to succeed, but don’t commit to payments that will obstruct your ability to keep turning profits.
Focus on Logistics
A huge part of keeping your overhead low is logistics. When you are shipping products out around the world, it can become very expensive. Focusing on the logistics and how to bring down costs as you expand will help you in several ways. First, you should try to work with a logistics consultant who can help you cut deals and find the best ways to send your products to specific places. Whether you are shipping parts to another country to be assembled or have a large customer base outside of your home country, if you keep your logistics and shipping costs down you will have a better chance at expanding your business and succeeding in the end.
Promote from Within
As you expand your business, there is a need for more employees. New roles will be created. Instead of promoting someone from outside your company, it’s usually a good idea to promote from within. You want someone who already understands your business and can deepen their understanding as they take on their new role. You can also train them ahead of time and give them the tools they need to succeed.
Furthermore, you will be able to trust people you already know. Promoting from within gives you a chance to strengthen your team by enabling one of your best employees to train others and create an environment for growth. Every growing business needs to hire people, but for middle and upper management think about hiring from inside your business.
Have Something New To Offer
So often businesses try to expand when they aren’t getting enough business to do so. When you’re focused on growing the company, you should have something new to offer. What is your new angle? Weither you have a new product or service? Are you rebranding and changing the way you do things? Whatever the case, if you don’t have something new to offer you should have been overwhelmed with business before. If you were getting more business than you could handle, expanding makes sense but for most companies they need something new to offer their customers.
Determine Your Markets
If you haven’t fully cornered your current market, you might either want to diversify or double down on optimizing the existing market. What are you selling and to who? Who wants this product or service? What new offerings do you have that will open you up to new markets? Your brand can certainly find new markets for new products, but if you are sticking to the same offerings then you should focus on the market you haven’t optimized.
Expanding any business is tricky, but if you have enough profit rolling in and are experiencing more business than you can handle it will likely be a success. There are a few things to keep in mind and if you do, you will be able to premiere new products, sell old ones to new markets, and grow as you put more into your business.
