Starting a business in the extremely competitive market of today which is full of entry barriers can be a real uphill struggle. If you have managed to get past this phase and establish your business in the market, and expect smooth sailing from here on out as an entrepreneur, then you are sadly mistaken. In fact, the real challenge is yet to come. All organizations must constantly concentrate on expanding their operations in order to survive as a successful and profitable enterprise. Here are five business expansion strategies that you might find useful in elevating your organization to the next level.
Add to your product/service portfolio
This particular strategy of expansion is much easier said than done. The first step is to gain a comprehensive idea about what products your customers expect from you and conduct research to find out how much they’ll be willing to pay to purchase them. The sample of respondents selected for the market research must be a fair representation of the population if its findings are to be valid and reliable. Next step is to develop the product from scratch and determine whether it is a profitable project to undertake. If the answer is yes, commence the production process.
Conquer new territories
Once you have gained proper recognition in your current territory of operations and established a loyal customer segment, it’s time to expand to new territories. If you are a production company, open up a new facility in geographical location that has access to all peripheral and raw material requirements including electricity, water, skilled labour and raw materials. Since such a move will involve a very large capital investment it is crucial to get it right the first time itself. Similarly, if you are a service organization you may either construct or purchase your very own service outlet in the desired location or look for a shared office space if you don’t necessarily need an entire office for yourself. This option would be relatively cheaper and much more flexible.
Aim for new target markets
Instead of targeting your products and services on a specified market segment based on demographics or psychographics, why not expand the scope of your target market to other segments that may be interested in your offering? However, you will have to adopt different strategies when communicating regarding your offering to different sets of customers. For example, when reaching out to the customer group in the age group 18-30, the best means of communication would be through social media and to handle these online dealings, you can establish your very own virtual office space in Malaysia so that there won’t be any need for a physical office building. When reaching out to the age group of 50-60, newspaper advertisements and television advertisements would be more effective.
Winning government contracts
Gaining the opportunity to acquire the government as one of your customer would be a great way to get recognition for your product/service and expand your organization. Government is the largest purchaser of goods and services of any country and it is by far one of the most reliable. Although this may include a lot of legal procedures that must be adhered to throughout the contract period, the ultimate gain o the company is much greater.