Every Business Owner starts his venture thinking that once this unit stablises, he would branch out. Arguably, the business is in expansion mode from Day 1 of operations. But, there will come a time when the business working would need to change due to internal or external market forces, and that could be The Tipping Point towards expansion.
Within the existing set up, if you agree with any/all of the following, Yay!! It’s time to expand –
- New customer acquisition has gone on the back bench, because your hands are full on delivering to the clients on board
- Existing Customers, beyond a point, are going to someone else for smaller issues because they find you “too busy” or your customer engagement time has reduced considerably.
- If you have employee/employees, who in spite of training and hand holding are still making mistakes, it could be a glaring issue of difficulty in keeping up with work pressure. As an entrepreneur one is bound to never acknowledge Work Pressure, but an employee does.
- Or most importantly, if you are doing everything right and its smooth sailing for you, but doing all this still leaves you with sometime in the day. An enterprising person gets satisfaction only by creating something worthwhile. Congratulations for beautifully executing the current set up. However “now let’s make it bigger” is definitely a thought which will keep coming back to you always.
However, more often than not, there are outside factors that bring about the thought that”it is time”
- Your direct competitors are expanding. More often than not, the competitor would have done his research on potential of expansion. And if he is going ahead, because of that you should at least evaluate the possibility too in all earnestness.
- Changes in marketplace/laws/regulations. There could be a huge possibility that there comes a change which brings an added advantage to your business/scope of work. And expansion in such a time would only mean leveraging that opportunity.
How should you expand?
There are plenty of ways to expand a business. You can look to expand your business to new customers by introducing a new location, acquiring a competitor or moving into a related industry. Not only will these expansion opportunities help position your company for continued growth, but they will also enhance your business’s selling power once it comes time to exit the business.
We will delve more on these aspects in days to come.