Expanding your business means more customers, more orders, and more money. You only have one hurdle standing between you and all these benefits – how to grow your business the right way. Let us looks at the various rules you have to follow, and what kind of risk you have when you decide to expand your business.
Protect What You Have
This rule doesn’t take a lot of effort at all. At times, you get so excited about the upcoming new business that you forget the core business area. Remember, what you have is what placed you where you are in the first place.
When you forget your core business area, it starts to crumble and lose meaning. You need to sustain it such that you enjoy the benefits it brings without losing sight focus in any way. The core business is vital because it usually generates a lot of business without much attention.
When we talk about the business that you have, we are referring to the services or products you offer, the clients you have, the network we have and so on. The easiest and cardinal rule of expanding is to protect what you have so that you use it to expand.
Expand Your Reach Using Your Base
Getting into a new market and acquiring new customers is one of the toughest tasks any business can undertake. This is why the second rule is to expand your reach by using the available customers. If you have managed to penetrate the market so far, then go ahead and use the influence you already have to get more. For instance, if you have a market share of 20 percent, why not try to double it to 40 percent? This will mean you get more customers, which in turn will require you to add more products or diversify your services.
For a majority, your core business area is the one that you started out with. If you started in real estate and branched out into cosmetics, then real estate is your core business area. The area from which you generate a more significant percentage of the commission is the core business area. Expanding horizontally means you can open up another section in the same line of business as your core business. Using the example above, you can decide to start selling land and other types of property.
The key is to expand into this business area but in another category. Before you choose the new category, take time to understand the options you have and then select what you can manage according to the budget and your expertise. The key to expand is to identify the right time to do it. You can use the law of diminishing returns to make a decision. This law specifies that as you get close to the maximum target in a particular area, the closer you are to the limit. This means you won’t achieve much growth even if you try. Try another category.
Vertical growth means that you go for a similar business that compliments what you have at the moment. Using the example of real estate, you need to go for a business that is structured in a similar way to real estate business or is tied to the business in one way or another. This rule is all about taking the lessons learned in real estate business and applying them to the new venture.
For real estate, you can choose to open a company that offers mortgages or go into building homes. Whatever the case, you need to use the lessons learned to get the second business running.
Bonus Rule: Stay Relevant
One of the rules to expand your business that many people overlook is to stay relevant. Staying relevant is all about moving with the trends. The latest trend to keep you ahead is creating an online profile. You need to create a website, join social forums and engage your customers. For this, you need to have a website, something which needs you to know how to build a Weebly website.
When you reach the ceiling, the only way to go is horizontally or vertically. Follow these simple rules to get more customers and make more money.