• 2020-10-19 18:02:48
  • Julianaaa
  • 101 viewsHits
  • Julianaaa

BUSINESS EXPANSION

Whether your business is a sole proprietorship or partnership, expansion is inevitable. Expansion is not only in size but also deals with the number of commodities.

For instance let me say a bank. When a bank wants to expand, they consider having more branches. I will say that is expansion in form of numbers and size. What about a wholesale? They may increase their size, but mostly they add a new commodity like bales of clothes. 

There are many factors to consider before a business person opts for expansion. Business expansion is not something that you wake up one morning and decide to do. I will explain to you some key things to consider.

The market gap or niche. Before you began your business you had to check your market. You had to know what product is missing and the demand for that product. Likewise, you expand according to the gap. When you begin that business, it will come a time when you will get competitors. However, there is something the customers want that you and your competitors are not offering; that becomes the gap. As an entrepreneur, fill that gap.

Capital; preferably let me call it second capital. Expansion requires money. If your business is doing well, to get this capital then sit down and do the SWOT analysis. Afterwards, work on your profit and loss graph. If your losses outweigh profit, then it is definitely not time for expansion. Instead work first on your market stability.

Listening to customers point of view. I have seen organisations asking customers on how they were served. They are also given a brochure to fill. If your customers give you good feedback then it is time to expand, if otherwise then train your workers on customer relations.

These are some of the top factors to consider. If everything is aligned then you have a green light to proceed and work on expanding your business.

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