Youths, Here are "business expansion strategies that may help you grow your business to the next level"
Growth and expansion are key goals for most business owners and entrepreneurs. But how can you expand your business in today’s lackluster and slow-growth economy?
Here are "business expansion strategies that may help you grow your business to the next level"
1. Add new products and services to your mix. This strategy sounds relatively simple, but executing it well can be challenging. For starters,
you need to figure out which products and services your customers want, and how much they’ll be willing to pay for them. Next, determine
whether or not you can sell these products and services at a profit.
The best way to accomplish this is to conduct thorough market research before committing any resources (financial and human) to new product
or service expansion. Ask your current customers what they think about your new product and service ideas, including potential price points.
Your market research needs to focus on customer demand for new products and services and your cost to manufacture, deliver, and sell them.
2. Sell more products and services to your existing customers. This is the flip side of the first strategy: Penetrating deeper into your current customer
base. Start by performing a market segmentation analysis to identify the customer segments that are more likely to buy so you can focus your sales
and marketing efforts on these segments.
This analysis will divide your customers into segments based on the criteria you choose (age, gender, location, buying history, etc.) so you can analyze
their potential profitability when it comes to selling them new products and services. Armed with this information, you can better allocate your sales
and marketing dollars.
3. Expand into new territories. The idea here is to market and sell your existing products and services to new customers. These new customers can be in
different segments or niches or different locations from where you currently operate.
If yours is a retail or storefront business, this type of expansion will likely involve opening new locations in different geographic areas — whether across
town or across the country. Doing so will require a significant investment of both time and money, so perform thorough market research first to make sure
there is enough customer demand in the new territory to justify the expansion.
“When you are thinking about expanding into new areas, the first thing you need to do is to determine how to specialize your advertising for your new market,
” advises Tri Nguyen, founder and CEO of Network Capital Funding Corporation. “If you can’t convey the benefits of your product or service to residents of a
new region, you’re going to struggle to make it. Be honest about flaws and strengths as you consider the message you will be conveying to a new area.”
The best information on how to run a small business comes from those who actually do it every day.
Share your knowledge and experience from running a small business
Here are "business expansion strategies that may help you grow your business to the next level"
1. Add new products and services to your mix. This strategy sounds relatively simple, but executing it well can be challenging. For starters,
you need to figure out which products and services your customers want, and how much they’ll be willing to pay for them. Next, determine
whether or not you can sell these products and services at a profit.
The best way to accomplish this is to conduct thorough market research before committing any resources (financial and human) to new product
or service expansion. Ask your current customers what they think about your new product and service ideas, including potential price points.
Your market research needs to focus on customer demand for new products and services and your cost to manufacture, deliver, and sell them.
2. Sell more products and services to your existing customers. This is the flip side of the first strategy: Penetrating deeper into your current customer
base. Start by performing a market segmentation analysis to identify the customer segments that are more likely to buy so you can focus your sales
and marketing efforts on these segments.
This analysis will divide your customers into segments based on the criteria you choose (age, gender, location, buying history, etc.) so you can analyze
their potential profitability when it comes to selling them new products and services. Armed with this information, you can better allocate your sales
and marketing dollars.
3. Expand into new territories. The idea here is to market and sell your existing products and services to new customers. These new customers can be in
different segments or niches or different locations from where you currently operate.
If yours is a retail or storefront business, this type of expansion will likely involve opening new locations in different geographic areas — whether across
town or across the country. Doing so will require a significant investment of both time and money, so perform thorough market research first to make sure
there is enough customer demand in the new territory to justify the expansion.
“When you are thinking about expanding into new areas, the first thing you need to do is to determine how to specialize your advertising for your new market,
” advises Tri Nguyen, founder and CEO of Network Capital Funding Corporation. “If you can’t convey the benefits of your product or service to residents of a
new region, you’re going to struggle to make it. Be honest about flaws and strengths as you consider the message you will be conveying to a new area.”
The best information on how to run a small business comes from those who actually do it every day.
Share your knowledge and experience from running a small business
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