If you are a business owner, you are most likely looking for ways to grow your company. The good news is that there are several ways that you can accomplish this goal.
What you should choose depends on the type of your business, the risks that you are willing to take and your preferences. However, companies, both small and big, usually choose one of the methods that are explained below.
Expand To New Markets
The easiest way to gain new customers is to start selling your products in new locations. If you only sell your products in one grocery store for example, you only have one set of customers to sell to. But, if you sell your products in stores all over the country, you have a vastly larger pool of customers to draw from. By saying new markets, you should not exclude foreign markets too.
However, operating abroad needs further consideration and planning as you will be less familiar with laws, market conditions, demand of your product and tax rules (something that always complicates things!). Apart from physical locations, you can expand your business and offer your products online. This concept works with any type of business that sells just about any product or even service. When trying to expand online, the key is to develop strong websites that will build your brand, gain exposure and take advantage of the endless opportunities that the web offers.
Acquire An Existing Company
When Facebook wanted to improve the quality of its photo sharing services, it purchased Instagram. Your company can use this same principle to grow or diversify the company without having to develop the product from scratch. After you acquire a new company, you can allow the previous management team to keep control. This allows the people with the knowledge of the product to continue selling it and further improving it. Acquisitions can be also used to eliminate competition, discourage startup companies to entry the same market or grab market share.
Create A New Product From Scratch
Another option is to create a new product from scratch. Although it may cost money to develop, test and market your product, there is a higher potential for profit. Developing your own product has risks but also benefits. The most important risk is that you might end up spending a fortune developing a product for which there is little to no demand. Apart from that, developing a new product might have a negative impact on your current operations and on the profitability of the products that you now offer. The most important benefits are that by developing a new product your keep all the profits, you diversify your product portfolio and you build your brand name.
Franchising is a popular option for companies that are looking to expand their market reach beyond their home area with limited risks and limited costs. Franchising is a great option for businesses who have a solid product and business model. The company benefits because the franchisee will have to pay a franchise fee as well as a portion of the profits to the franchiser company.
Growing your company can be a hard task but it might also be the only option you have left if you are operating in a saturated market. You should analyze your position, look at your options and choose what is best for your business.