How to Launch a Successful Business Expansion

Expanding your business is an exciting prospect, but with it comes the need to carefully manage your budget, devise a hiring strategy, and revisit your business and marketing plan. Some Web Studio can be your go-to resource when it comes to developing professional strategies to get your expanded business noticed and new customers streaming through the doors.

Is It Time to Expand?

Before taking the plunge, revisit your business and marketing strategies to determine if an expansion is financially feasible. Are you adding additional product lines or services? If so, you’ll want to conduct market research and assess your budget to ensure you can both fund your expansion, as well as stay on track to expand your customer base in such a way that the move is profitable. This means making sure a market exists for your expansion or new products – according to Corporate Finance Institute, you don’t want to chip away at your existing customer base, but rather, attract new consumers. You’ll also need to factor in the costs necessary for augmenting your marketing strategy to include your new offerings.

Deciding on Product Lines

Most small businesses find that the most successful products and services are those that expand upon or augment their existing offerings. For example, if you operate a graphic design studio, you might expand to offer copywriting, branding services, or web design. If you own a bridal salon, you might move to a bigger location so you can offer a more extensive line, add additional services like wedding planning and hair and makeup, or collaborate with other service providers, like bakeries and venues. Do your due diligence to find out who your competitors are and how you can differentiate your products or services to stand out in the marketplace.

Making a Physical Move

If your expansion requires relocating to a larger location or opening a secondary outlet, carefully consider all elements of how this might impact your operations from both a practical and financial perspective. In addition to the likely higher cost of leasing a larger space, you’ll also have increased utility costs and potentially higher taxes; you may have downtime while you’re moving, in which you aren’t generating a profit; you’ll have to ensure customers know where to find you – and if you’re opening another location, you’ll need to consider the demographics of that geographic area’s market and change your messaging approach accordingly. 

Funding Your Expansion

If you’re able to self-fund your expansion, that’s one thing, but if you need to apply for a small business loan, according to the U.S. Small Business Administration, you’ll likely need to demonstrate how well your business is already performing, and make assurances that the expansion will continue the profitability. This may mean reworking your business plan, especially with regard to budget, operations, and market demographics. Consult with a small business lender or your current banking institution to learn about various loan products and options. If you are a bit unsure about the best approach, consider consulting your local small business development center or seeking out a SCORE mentor for additional guidance.

Hiring New Employees

If you’re expanding operations, chances are you’ll need additional employees as well. Whether you hire full-time staff, part-timers, or rely on independent contractors and freelancers, it’s important to have collaboration tools in place to keep everyone on the same page. Organize your project with a process map, a fantastic tool that allows you and your team to analyze the processes and outcomes of what everyone is working on. It makes it easier for everyone to stay organized and productive and serves as an exceptional project management tool. Tracking progress can also be helpful when it comes to ensuring you’re staying on budget and meeting all of your key performance metrics.

Expanding your business – physically, or by way of service and product line enhancements – is a great way to foster ongoing growth and increase your earnings. Take a practical approach when planning your steps to ensure you get off on firm financial footing.

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