Business Expansion: But First, the Groundwork

Posted on: August 21st, 2017

business expansionThere are many ways to expand your business. You can start right where you are with what you have, or you can look to the horizon, shoot for the stars, and go global.

According to the NFIB Research Foundation, the small business outlook for expansion survey has shown an upsurge, meaning that your fellow entrepreneurs are looking to grow as well. The number of business owners looking to increase job opportunities for employees is up to 19%, a height that has not been since December 1999.

Many are expanding by hiring new employees, others by purchasing new machinery, and some by spreading to a global reach. There are a handful of steps to help you make the choice of how, when, and if you should expand.

The main ones include calibrated demand growth, sound business planning, and ensuring adequate human capital and financial support.

Can your business benefit a larger audience?

If there is a larger audience to reach, perhaps it’s time you do so. If your business fits a need not otherwise filled, it has a great opportunity for a wider market.

Do the research, though. While it may seem that you could have a larger customer base, the market may be a bit different in other regions, and that may affect the cost and rate of new customer acquisition.

The distribution channel required to get your product to market could also be very different. It is important to calibrate market specific customer acquisition plans, especially in new regions and international markets.

If you aim to acquire customers in other countries, how is your product viewed there? Is it necessary and well accepted or is the market already filled or seen as outdated? If there is a guaranteed growing demand, you should clarify how far it might reach–internationally or globally.

Do you have there sources necessary to expand?

Having quality labor is the single biggest gating item to middle market business growth. The NFIB Research Foundation found that 60% of small businesses were looking for new employees, 87% of those were struggling to find candidates that were qualified and reliable.

Labor shortages can be a top problem for business owners looking to expand.Human capital drives business expansion so company culture is important for attracting and retaining the right types of employees.

Once you’ve done the groundwork, seek out sound advice from a professional. Follow up with the proficiency of a well-respected financial services firm that will assist you in solidifying your business plan and guide you to the best business funding options.

Attract Capital is a reputed financial advisory firm that provides financial solutions for your various business needs. Our advisory services are dedicated to the growth of mid-sized companies and can help with expansion plans. Contact us today.