You have started small and now your small business is doing great. Probably you wanted to follow the steps of Henry Sy from a small shoe store to now one of largest mall operators or of John Gokongwei Jr. from small trading business to now the popular Robinsons among other businesses in the country. So now you wanted to expand your business, expansion means more growth, and therefore more profit. If you are ready to go to the next step and grow your business beyond what it is now then read on.
So what are the various ways to expand our existing business? A few of them are listed below.
Your expansion depend on the type of business you own, your available resources, and how much money, time and sweat equity you're willing to invest all over again; and of course, whether you have learned your lessons well when you were starting and surviving your business on its infancy stages until now.
1. You can open a branch or open in another location. This entails doing it all over again, but much easier now that you have experience. Still, do your careful research and business planning. Ensure that you maintain a consistent bottom-line profit and that you've shown steady growth over the past few years. Make sure your administrative systems and management team are prepared. Check your financing and your business plan; and lastly choose a great location. We have often heard and said it, location, location and location.
2. Turn your business into a franchise. This is how Jollibee, Chowking etc. expanded fast. This is ideal particularly if you have plans to expand nationally. Network with the franchise community or become a member of the Philippines Franchise Association and find a good franchise attorney as well as a mentor who's been through the franchise process.
3. Diversify. It is best if you sell complementary products or services that you have now. If your business now is into “siomai” food business, why not include noodles or burgers? Still make a careful study. 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.
4. Target other markets. If you have a food stall, why not make it into a restaurant? If you’re current market are class A and B, why not come up with a product for C, D and E? This works well in the country as we are into “tingi” phone loads for example mutated to e-loads, and toothpaste and shampoos in sachets.
5. Get into government contracts. We all know this is one of the most lucrative markets that we can have.
6. Acquisition. Buy a new business. If you have raised enough capital and you have found a complimentary business that would save you lost of money, then go for it. Still, do a careful study and due diligence before doing anything.
7. Internet. Lastly, if you read our previous post you can start exporting, and opening your business to the world through the internet.
So what are the various ways to expand our existing business? A few of them are listed below.
Your expansion depend on the type of business you own, your available resources, and how much money, time and sweat equity you're willing to invest all over again; and of course, whether you have learned your lessons well when you were starting and surviving your business on its infancy stages until now.
1. You can open a branch or open in another location. This entails doing it all over again, but much easier now that you have experience. Still, do your careful research and business planning. Ensure that you maintain a consistent bottom-line profit and that you've shown steady growth over the past few years. Make sure your administrative systems and management team are prepared. Check your financing and your business plan; and lastly choose a great location. We have often heard and said it, location, location and location.
2. Turn your business into a franchise. This is how Jollibee, Chowking etc. expanded fast. This is ideal particularly if you have plans to expand nationally. Network with the franchise community or become a member of the Philippines Franchise Association and find a good franchise attorney as well as a mentor who's been through the franchise process.
3. Diversify. It is best if you sell complementary products or services that you have now. If your business now is into “siomai” food business, why not include noodles or burgers? Still make a careful study. 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.
4. Target other markets. If you have a food stall, why not make it into a restaurant? If you’re current market are class A and B, why not come up with a product for C, D and E? This works well in the country as we are into “tingi” phone loads for example mutated to e-loads, and toothpaste and shampoos in sachets.
5. Get into government contracts. We all know this is one of the most lucrative markets that we can have.
6. Acquisition. Buy a new business. If you have raised enough capital and you have found a complimentary business that would save you lost of money, then go for it. Still, do a careful study and due diligence before doing anything.
7. Internet. Lastly, if you read our previous post you can start exporting, and opening your business to the world through the internet.
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