Back To Basics With Business Expansion

I came across an article discussing back to basics with business expansion. Here are a few snippets that you might find interesting.

Businesses must start from an idea and are not simply successful from day one. To grow into a successful business, founders look for ways to expand their idea and seep into new markets, which in turn will increase revenue. There is no secret to growing a business, yet many business owners tend to make a series of mistakes, leading to their demise.

?ARE YOU CONFIDENT IN YOUR PEOPLE?

The people in your business form the base of any business. No business can reach their full potential without building a loyal and hard-working team at the core. These people are the ones who will help to turn your idea into a successful business.

The process of recruiting and finding the best talent is never easy.?You must over-invest time in the process as it is a fundamental investment and future growth driver.?Two principles I have learned over the years when looking at recruitment are, to surround yourself with people who are better than you and do not be afraid to recruit someone who could make you redundant.

HAVE YOU OVER COMPLICATED YOUR STRATEGY?

As mentioned, businesses grow from an idea or a vision of something which needs to be developed, therefore this must be supported by a strategy. An over complicated strategy will be hard to follow and may not give you a clear road map to reach your goals, so keep it simple.

It’s important to remember ‘less is more’.?Too often strategy papers can be voluminous and complex.?The best strategy work I have seen is on one piece of paper with clear, simple articulation of the choices you will do and equally what you will not do.?It is very empowering to tell a team what you are not going to do.

DOES YOUR NEW MARKET RELATE TO YOUR CORE?

Before you begin to expand into new markets it is important to ensure your core market is strong and profitable because expanding will require investment of time and money. The core pays the salaries and the business drivers so you must not begin to invest significantly in new products, geographies or services unless the base is strong.?This is another seemingly obvious point, but there are thousands of examples where enthusiasm to grow has caused companies to fail.

If you conclude that the demand is there, only then should you move onto executing that new idea because it will require a significant amount of investment of time, resources, and money.?If the market entry cost is potentially high, you should also evaluate a test & learn approach by launching in a limited way and, if early traction is good, then expand.

Once you have revised your existing offering to appeal to a wider audience, you need to engage with these new consumers to increase brand recognition.?If your business is not online, add this to your to-do-list because in today’s era, convenience is key and it has never been more important to maintain an online presence.

With social media and the abundance of mobile technology, it is not difficult nor expensive to drive traffic to your site, so you need to ensure the site is engaging, easy to navigate, informative with a call to action to purchase.?Loyal customers who return to your site are worth their weight in gold!

DO YOU HAVE CASH RESERVES IN PLACE?

Without a healthy working capital the day-to-day running of a business is not possible, let alone business expansion. You must always keep a ‘rainy day fund’ for when something goes wrong, even if you developed a stable business. This has caused thousands of start-ups to fail as they hit unexpected turbulence and had no contingency in place.

Overall, whilst there is no single formula, going back to the basics of businesses is a good idea when looking to expand. This means paying close attention to the team you have surrounded yourself with, do they share your vision and passion? In order to attract the right people, you will likely have to give back and invest into your team. Secondly, to underpin your vision, design a strategic but clear road map to success. And finally, use your core market as a gage for new markets in order to not drift away from the brand culture you have developed.

Want to know more? Head on over to the full article here for more ideas and perspective. Afterwards, why not drop me an email to share your thoughts at [email protected]; or call me on 0467 749 378.

Thanks,

Robert