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Strategies That Will Help You Expand Your Business

Expansion and growth are among the key priorities of companies of every size but economical, and business conditions can sometimes make that seem not easy. These are five ways that can help businesses of any size grow, no matter the economic situation.

For new businesses, the first few years are all about survival but being aggressive with growth strategies can exponentially improve a small company's chances of making it through that challenging early period. While medium and big businesses are likely to be less focused on survival, growth and expansion is still crucial to maintain market share and stay ahead of the competition.

In short, growth is important in all levels of business, but it isn't always easy to see the best path towards achieving the desired expansion. One of the key themes running throughout will be researched. There are so many cliches about this, like "knowledge is power" and "knowing is half the battle", and they all ring true with business. Research should be by far an essential point behind most business decisions.

Here are four things to consider when you are mapping out your next growth strategy:

Expand Your Product Offering

This is a point that somehow sounds equally simple and complicated all at the same time. If you want to sell more stuff, having more stuff to sell will help. However, what new products and services should you add? This is where the research comes in.

You need first to find out who your potential customers are to understand what products and services they want and need and how much they can afford to pay for them. You can do this by canvassing your current customer base or using targeted advertising on social media to poll people you think are similar to your customer base.

Once you know what people want, you need to figure out if you can sell it for a profit. If the answer is no, it's probably time to develop a new idea unless it also brings some other value to the company to make up for the financial loss.

The most important thing here is not to get caught up in all the new ideas that will come from the market research. Your focus is on finding out what people want and how you can make the most money from supplying it to them.

Explore New Markets

This is an idea that many small business owners often slip because it's something that hasn't been particularly easy to do until the last decade or so. For a traditional retail business that operates from a store in a mall, it is complicated and expensive to expand to new territories because it would involve finding a new property for an additional storefront and adding new staff to run the new shop.

However, more and more businesses are operating online these days and expansion in that environment is far simpler. Technology giant Apple recently decided to expand into new regions such as Seychelles and Zimbabwe, and it was simply a matter of making the Apple Store live in those regions. All the technology and infrastructure already existed; it was merely a matter of turning it on in a new territory.

Another example can be noticed in the entertainment industry where streaming platform Disney+ decided to expand into India. Something similar can be seen in the iGaming industry too, where LeoVegas Casino expanded one of its products, LiveCasino, on the NZ market, as a result of the rise in popularity of online gambling in New Zealand.

Again, research is key when expanding into a new region because affordability and market conditions will differ. You need to know the market conditions you are moving into to offer a product people want and to set competitive prices.

Cut Costs

Growth doesn't always have to be about expansion. An over-zealous bid at expansion can even be detrimental to growth if done carelessly and costs more than it makes back. While looking outward for new opportunities is always essential, it can be equally beneficial to your company to take some time to look inwards every so often.

Pay close attention to what it costs to run your business, and make sure you have a comprehensive budget mapped out, so you know where all the money is going and how much each section of the company is worth.

Don't be afraid to underperforming axe products, bringing in a low-profit margin or are costing you money. Always be looking for better and cheaper ways to do things. If you can find a way for your company to do precisely what it is doing now, but for it to cost less, you have effectively grown your business without adding any new customers or products.

Buy Another Business

This is by far the quickest route to expansion, but that does not mean it is easy. In some cases, companies merging can effectively double the size and impact that both can have. However, this option is where research is the most important.

When looking for a company to acquire or merge with, you have to be 100% sure the two are compatible. Look for companies that synergise well with what you are already doing, look for a company that like-minded people run and, most importantly, look for a company with many potentials, not just a lot of success or revenue.

The reason for this is that buying a company is never cheap, and buying a successful company is going to cost you a lot, no matter which way you slice it. Potential is important because it speaks to future value. If you take on a bunch of debt to acquire a company that provides you with more revenue but no additional profit, it will be complicated to pay off. If you buy something with potential, it can be a bit cheaper to start with and more accessible to profit from when that potential is realised.

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