Business expansion is a phase where your business realizes growth and looks for additional alternatives for generating more profit. It is a business strategy that aims at attaining business growth by increasing the number of stores where customers can purchase your company’s products and services. You can achieve business expansion by opening up new stores in separate locations while preserving the present business locations.
Reasons why you need to expand your business
1. To manage the increased volume
You may need to expand your business to manage an increase in volume. Suppose your business was initially operating on a small scale. For example, if you are operating a hotel business and it reaches a point where you have to decline booking requests because all the hotel rooms are occupied, you should consider expanding your business by opening additional locations or remodeling your hotel to accommodate more customers.
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2. To establish a new market
You may need to expand your business to establish a new market and reach a whole new customer base. Establishing a new market can help you grow your global presence and repress the implications of stiff competition resulting from oversaturation of an existing market.
3. To offer additional services
You may need to expand your business to introduce additional services to your customers. Most of these additional services are related to your current services. These services are primarily aimed at supplementing your initial services. For example, you can decide to add a restaurant inside your hotel to give your customers more convenience by easing their access to restaurant services, thus saving them the hassle of moving out of the hotel in search of restaurant services.
Financial Help Your Businesses Might Need for Expansion
1. Small business loans
You can use small business loans for the expansion of already existing businesses to manage an increase in volume, offer additional services and establish a new market. You can apply for an unsecured business loan to get the funding you need to remodel your business or open additional locations. You can also get business equipment finance for use in the purchase of new equipment for use in your expanded business. A secured business loan may give you a business boost by providing you with the funds you need to hire more employees for your expanded business.
2. Business insurance
You can get business insurance for your newly established location to help protect it from a covered loss that may arise from risks such as lawsuits, property damage, employee illness or injuries, loss of income, vandalism or theft. Hubbe Australia offers you three kinds of business insurance policies to choose from – namely; property policies, employee insurance policies and liability policies.
3. Business loan against property
You may have inadequate capital yet in dire need to expand your business. You can apply for a business loan against a property to help you establish a new business location, purchase new equipment for your expanded business and purchase a commercial property that will host your new or additional location. A business loan against property features wider options for loan use, thus you can use it for any purpose to achieve business growth.
4. IT Solutions
IT Solutions can help you launch an online presence for your business with the aim of attracting, engaging and effectively retaining your prospective customers. You can leverage Hubbe’s support for Australian small businesses through the provision of IT Solutions packages starting at just $289 to create an online presence that accommodates your expanded business. IT Solutions complements digital marketing, which can also act as significant financial help for your expanded business. You can opt for creative and specialized services such as SEO, Social Media Marketing and inbound marketing to help you reach out to your target audience.
5. Merchant facilities
Merchant facilities relieve you the worry of handling cash by facilitating easy payments for your expanded business. It enables you to relish business growth with its cut-rate prices, wide network, and flexible choices. Moreover, merchant facilities let you enjoy local support, simple pricing, industrial experience, modern interfaces, accessibility anywhere and reliability and enhanced security.
Ways In Which Your Business Might Expand
1. Through selling more products and services
You can expand your business by selling more products and services. When you increase the number of products and services, you gradually widen your current customer base. A wide customer base typically demands more products and services; hence, for you to meet the needs of your increasing customers and consequently retain them, you will have to expand your business to properly accommodate all of them.
2. Through the addition of new products and services
You can expand your business by introducing new products and services into the market. However, before settling on the types of products and services to introduce to your target customers, you need to know your customers’ preferences and the amount they will be ready to pay for them. You should conduct in-depth market research to understand the demands of your customers as well as their preferred price points. You can then proceed to commit your resources on additional products and services after settling on suitable products and price points.
3. Through acquiring another business
You can swiftly expand your business by acquiring another business. Obtaining another business can help you increase the size of your business significantly since it has the potential to grow your sales and revenue exponentially. However, you should consider conducting due diligence on the financial condition, the breadth of client base, soundness of existing contracts, and strength and depth of the management team of the company you intend to acquire.
How Alternative Financing Can Help Your Small Business Rise?
Alternative financing offers you an effective and more reliable method of financing that stretches beyond the conventional asset types like cash, bonds, and stocks. You can easily acquire proper financing with alternative finance thanks to the less strict qualifications. The ability to get proper funding whenever you need it can help you meet imperative business demands and make critical decisions that could help keep your business running smoothly. The various loan options for alternative finance allow you to choose an ideal loan facility for your business. Acquiring business equipment finance quickly when you need to get new equipment for your expanded business can help your business rise significantly.
Solution To Your Business Expansion Problems
1. Opening additional locations
You can open additional locations for your business to help manage your mushrooming customer base. You can conduct market research to determine the distribution of your customers based on their preferences and needs to help you decide on the pertinent products and services to provide in each and every new location. Alternative lenders would be more willing to offer you the funding you need to open additional locations for your business.
2. Remodeling your business
You can remodel your expanded business to help solve the challenge of business expansion by changing its form or structure to accommodate more customers. You can get a small business loan to help you fund the remodeling project for your business.
3. Hiring more employees
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Increasing the number of employees in your business can significantly solve your business expansion problems. Hiring more employees can help you manage the increasing business tasks resulting from increased customer demands. Adequate manpower could help your business meet the needs of its customers in time, which could consequently help your business stay ahead of its competitors.
It is possible to manage all the challenges faced during business expansion without compromising any of your business operations.
Choosing and developing the right strategy could significantly help you expand your business effectively and consequently increase your net sales and revenue.
Essentially, the primary objective of your business is to maximize sales and revenue, right?