Grow to overgrow business Risks:- Any Business observes changes as it moves beyond the start up phase, identifying opportunities for development becomes a priority for it to ensure the enterprise sustainability. Even if you are happy with your present performance, it is very important to keep looking ways to grow. If you don’t, you risk allowing your competitors the room to develop and take market share from you, which could seriously deteriorate your position. Maximum businesses start small and stay there. Nevertheless that’s not good enough for you. Staying small doesn’t necessarily guarantee your business’s survival. There are examples of companies out there that have magnificently made the transition from start-up to small business to fully thriving large business. Many small businesses grow by taking opportunities to Business Expansion & diversification.
Strategy for Growth:-
- Expansion: – Finding new market for existing services and products.
- Diversification :- Developing new Product and services in existing market.
Companies need to expand internationally to keep a competitive edge as well as keep financial security. It has been documented that many US companies have been able to hold a steady profit margin in times of market declined locally. It is with this strategy only to decide to diversify.,
When you should decide for expansion?
When economic factors locally affect the bottom line, favorable economic conditions may exist overseas that can keep a business afloat and profitable and even exceed. Therefore it is very important to identify the need and take wise decision to expand when
- Your market is changing due to more competition or changes in consumer behavior.
- Your business or your trade is in the midst of growth or expansion.
- Your local community is rising or lessening.
- A key person in your company is about to withdraw.
- You are planning to finance a major capital purchase.
- You are continuously at, near or over your current line of credit.
AKT Associates has expertise is reading these sign and advise you on how to take next step
Call us today at 8080809061 to get SWOT report for your business
For those of you who have survived startup and built successful businesses, you may be wondering how to take the next step and grow your business beyond its current status. Choosing the proper one (or ones) for your business will depend on the type of business you own, you’re available resources, and how much money, time and sweat equity you’re willing to invest all over again.
There are numerous possibilities for Growth and Expansion, some of which we’ll outline here. Business expansion can take place at
- Local Level
- National Level
- International Level.
Here are a few ideas, uniquely suited to current market conditions, which might stimulate some new thinking on how to expand your business.
- 1. Open another location. This might not be your best choice for business expansion, but its listed first here because that’s what often comes to mind first for so many entrepreneurs considering expansion. We here at AKT Associates will help you in analyzing the bottom-line profit, the trends, both economic and consumer, suggest indications of your company to expand, train .your administrative systems and management team as are you’ll need them to get a new location up and running. We assist in preparing a complete business plan for a new location; determine where and how you’ll obtain financing.
- Offer your business as a franchise or business opportunity. We chose franchising as the vehicle for expansion for your business as it gives an operating system that would allow ownership on the part of the staff operating. When people have a vested interest in their work, they enjoy it more, bring more to the table and are more successful overall. Franchising is a perfect system to accomplish those goals.
We will be available for Bette advises networking within the franchise community, & will be your mentor who will be with you through the franchise process.
- License your product. This can be an effective, low-cost growth medium, particularly if you have a service product or branded product, 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. We will be providing guidance for researching companies that provide products or services similar to yours
- Form an alliance. Aligning yourself with a similar type of business can be a powerful way to expand quickly. If the thought of shelling out commissions or any of your own money for the sake of an alliance makes you uncomfortable, We advises looking at the big picture. You need to align with other businesses that already have lists of prospective customers. It’s the fastest way to success.
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.
Diversification can take several forms:
- New, related products or services to existing customers
- New markets for existing products
The entrepreneur is that endless challenge seeker. Once their small business is humming along, growth is the next exciting challenge. Exciting, yes but at the same time growth can make good business sense – better brand recognition, building value in the business for employees and customers, offering a wider range of products and services to a larger geographical market, and creating “economies of scale.” products for new markets.
- Target other markets. Your current market is serving you well. Are there others? You bet there are lots, yet to be explored by enthusiastic entrepreneurs like you. Other markets are what make money for me you indeed.
- Merge with or acquire another business.
Four basic keys which highlights the importance of this opportunity is:
- Customer retention.
- Staff retention.
- Melding technologies or smooth integration of the two technologies.
- Expand globally. Not only grow in terms of customers and sales, also experience a global growth simply as a result of integrating the best of the divine technologies. You can finally have international reach. This increased market share is what will allow you to realize sustained growth. But you don’t need to acquire another business to expand globally. You just need to prime your offering for an international market
- Expand to the Internet. “Bill Gates said that by the end of 2002, there will be only two kinds of businesses: those with an Internet presence, and those with no business at all,” Internet is becoming an integral part of business today. You can avail the benefits of this opportunity with our support system.
We, here at AKT Associates delivers services for startups with an emphasis on technological innovations having marketplace potential and works to increase employment opportunities and employee retention by helping established companies and organizations renew their “entrepreneurial spirit” and become more globally competitive through Growth and expansion.