Expanding your small business

Maybe you’ve been in the small business market for a year or two or three but are looking to grow and expand, so how to do that?  Some of the options I’ll lay out for you today might not all be right for the type of business you’re in but others may be.  Choosing the proper one(s) for your business will depend on the market you’re targeting, your available resources and how much time and money you’re willing to invest.

If you’re not already, get on the internet.  Such a vehicle allows young entrepreneurs to reach a significantly larger market and serve their customers 24/7.  For a small fee per month, you can market your services in the States or worldwide.  The greatest benefit of the Internet is that it levels the playing field between large and small businesses.  “A well-designed website can extend the range, size and scope of your services, even projecting an image of a well-oiled and established corporation, instead of a small business run by a solo operator.  Develop a good website, and compete side-by-side with the big boys.”

Hire cheap but effectively.  If you can’t afford full-time employees, you can hire commission-only sales representatives or interns.  For the reps, you pay them merely what they earn and interns often work for free or for a small stipend as they often get a college credit in return.  The drawback of an intern is that they may only be able to work during their winter, spring or summer breaks.  You could also consider the option of hiring people who are willing to work for nothing but a stake of equity in your company.  

Network and participate in business organizations.  These will prove to become valuable sources of information leading you to referrals to grow your small business along with well sought after advice from industry experts.  It will keep you up to date on the latest industry news and developments.

Partner and join forces with other similar businesses.  Think about working out a deal where you help one another promote and market your products.  You can do something known as an “ad swap” where you can advertise for free on their site or publication and vice versa.

Find inexpensive ways to advertise your business regularly.  Go on LinkedIn or Facebook.  Send out press releases.  Always have business on hand and readily accessible.

Capitalize on your reputation and expertise.  Accept consultancy projects or speaking engagements.  Get word of mouth out there.  The better you’re known in your field, the better chance you have at growing and expanding.

Write articles in relevant publications or you might even consider writing a small book.  Or think about developing a software program for mass publication.

Sponsor trade shows or events in your community.  “The major focus of the tradeshow is to provide a familiar venue for business professionals to research business products and services in an environment focused on a specific vertical market.  Expositions such as trade shows allow your business to exhibit and demonstrate your products to other businesses, but sponsoring one can enhance your image as a market leader or a trendsetter.  On a lower scale, you can participate in your community's activities, providing support to projects on fund-raising for the poor.  Both of these activities can enhance your business' credibility, and entrench your role in the community and industry.”

Think about opening your first or next location.  Physical expansion isn’t always the best growth scenario but it’s often the one entrepreneurs look to first.  Once you open a location, you can consider franchising it.

Think about licensing your product.  This can be an effective, low-cost growth medium, particularly if you have a service product or branded product.  "You can receive upfront monies and royalties from the continued sales or use of your software, name brand, etc, if it's successful.   Licensing also minimizes your risk and is low cost in comparison to the price of starting your own company to produce and sell your brand or product.”  To find a licensing partner, start by researching companies that provide products or services similar to yours.

Diversify.  Sell complimentary products or services.  "Diversifying is an excellent growth strategy, as it allows you to have multiple streams of income that can often fill seasonal voids and, of course, increase sales and profit margins.”

Target other markets.  What other customer base can you reach?  What is an underserved consumer in the marketplace?  Look to service these peoples’ needs.

Merge with or acquire another business or expand globally.  That said, you don't necessarily need to acquire another business to expand globally.  You just need to prime your offering for an international market.

While not all of these steps might be right for you given your type of small business, consider some of the options that seem feasible and you might find just the right way to expand into the broader marketplace and grow your small business one step at a time.

Here are some articles you many want to check out on business expansion:

“How to successfully expand your small business”: http://www.fastupfront.com/business-articles/business-development/how-to-successfully-expand-your-small-business/

“Expanding your small business the smart way”: http://www.fastupfront.com/business-articles/business-development/how-to-successfully-expand-your-small-business/

“How to successfully expand your small business”: http://www.rapidadvance.com/blog/?blog=how-to-successfully-expand-your-small-business

“How to expand your small business to help with its development”: http://bizammo.com/management/how-to-expand-your-small-business-to-help-with-its-development/

Until next time…