If you run a small business, it’s only natural you’d want to transform it into a large one. There’s just one issue with this: scaling a business is challenging.
In fact, that’s underselling the effort involved.
An incredible amount of work is required to achieve a successful business expansion. You’ll need to wear many different hats, covering many different elements – from sales to accounting – for your company.
Yet if you buckle down, put in the work, and have a clear plan of what to do, it’s easier than you may think to achieve business growth. Because once you get the ball rolling, certain aspects will fall into place to help you along the way.
As for what the plan should consist of, consider the following guide for helpful advice on how to successfully develop your business.
Secure additional funding
As the saying goes, you need to spend money to make money. While you can utilize the revenue produced by your business, it makes sense to secure additional funding. This way, you can quickly acquire a large sum of money, giving you the chance to enhance various areas of your business all at once.
The one issue with this is deciding on a method of funding. Despite the number of options available, arguably one of the best picks is to go with an unsecured business loan.
For instance, unsecured business loans from Become are an ideal solution for various reasons. Not only can you land a large sum of money within a few hours, but it’s even available to those who have low credit scores.
Prioritize your current customers
When you have grand visions of expanding your business, your focus will typically be on acquiring new customers. Now it’s essential to bring newcomers into the fold, of course, but your current client base is even more essential.
In fact, there are a number of figures which back this up. Statistics suggest it costs upwards of five times more to gain a new customer compared to keeping one. Additionally, Existing consumers are said to spend 300% more in total.
The big question is: How do you best prioritize current customers?
While there are several approaches available, one of the most effective is to utilize a customer loyalty program. When you give customers a notable incentive to spend further money with you, such as a free gift after every fifth purchase, they will remain loyal to your brand.
Expand your products and services
It’s a straightforward point, but an effective way of growing your business is to introduce new products and services. An expanded range will not only help to entice a broader range of customers, but they will likely be of interest to your current client base – and it’s already been established how essential that is for business growth.
However, a certain level of caution needs to be taken when bringing new products or services to the dance. Ensure you conduct plenty of research to determine if what you’re planning to release will actually be wanted by your target market.
Focus on additional income streams
This tactic might not be applicable for every business type, but it’s certainly worth exploring different income streams for your company. Ultimately, you want to be earning as much money as possible, and identifying new opportunities is essential for scaling up.
When it comes to expansion, passive income can be particularly advantageous. When you have a steady stream of income coming in, you have the space to take risks and rebuild if mistakes happen.
Ramp up the marketing efforts
While marketing will already be an integral aspect of your business, it is integral you place even more focus on this element for expansion.
This can be done in two main ways. Firstly, you can invest more money in your current methods for advertising. Secondly, you can go down different avenues for your marketing. For instance, you might decide to place emphasis on creating video content for a YouTube channel and your social media accounts.
Acquire another business
If the opportunity presents itself, acquiring a different business can be an effective method of expanding your business. For this to become a reality, you will need to find a business that’s not only available for sale but also one that will complement your current operation.
When you do acquire a business, this comes with a number of benefits. Most notably, you remove a competitor from the market while also instantly growing your customer base.