<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=349935452247528&amp;ev=PageView&amp;noscript=1">
Search
word-map-thumb

The Alternative Board Blog

Awesome Tips on How to Plan for Your Company’s Expansion

Mar. 5, 2019 | Posted by The Alternative Board
Expansion

Successful business growth doesn’t happen accidentally. While there are times when rapid expansion occurs due to unforeseen factors such as large-scale market changes or shifts in demographics, for the most part, a business plans for expansion long before actual growth takes place. This planning helps anticipate potential challenges and roadblocks, as well as define growth opportunities—all so expansion takes place in a hopefully ordered and effective manner.

Here are tips on planning for expansion that can help inform your strategy:

Know why your business should expand.

A key step in the planning process is “to define exactly why you want to want or need to expand,” notes Tweak Your Biz. This initial step sets the tone and pace of your plan, “so take time to do a thorough explanation, in writing, as to the purpose of your expansion.”

Incorporate expansion into your marketing plan.

An effective marketing plan addresses all aspects of potential growth, from target audience research to the funds needed to meet your expansion objectives.

As we’ve noted previously, a solid marketing plan “combines an in-depth knowledge of your target audience with a comprehensive competitive analysis of the marketplace.” With this information, you and your company will have “a keener grasp of what expansion costs will look like over a set period of time.”

Consider a new product launch or product upgrade.

For many businesses, the most obvious path to successful growth lies in expansion of their product offerings. Opportunities for growth in this area include:

  • Upgrade your existing product list.
  • Launch a new product.
  • Boost sales of existing products to current customers.
  • Identify and explore untried customer markets.

In the all-important planning stage, notes AllBusiness, market research should be conducted with “a focus on customer demand for new products and services and your cost to manufacture, deliver, and sell them.” Unsure what the new product should look like? Ask your existing customers for input on “your new product and service ideas, including potential price points.”

Want additional insight? Download Easy Ways to Improve Your Company Culture

DOWNLOAD

Carefully outline prospective hiring needs.

With expansion often comes the need for a larger workforce (and with that, of course, comes additional labor costs). Do you anticipate bringing on additional full-time staff in 2019 or will added part-time workers fit the bill? What about outsourcing some of the administrative tasks engendered by business growth? As part of the planning process, look at ways to meet your expansion goals without incurring unnecessary additional expenses related to payroll, healthcare and other legally mandated benefits.

Explore new funding sources.

Since we’re talking about money, your plan for growth must cover potential sources for financing. Options for small businesses range from loans and financial programs offered by the U.S. Small Business Administration to funding available from banks and credit unions. Also, specialized online lenders can help with key capital loans and other funding needs.

Your detailed plan for expansion will come in handy when you make your case for a business loan.

Talk to your peers about growing the business.

A few months of healthy profits can make even the most cautious business owner eager to expand into new territories. But it’s always a good idea to discuss these goals with others in your business network or with members of a seasoned business advisory peer group. “A strategic plan combined with a peer review board is the guiding compass for any business looking to get and keep a competitive edge,” particularly when it comes to business expansion.

Want to learn more about how to plan for expansion? Download our free TAB white paper, “Best Ways to Secure Capital for Your Business,” for an in-depth look at the best funding options out there.

Read our 19 Reasons You Need a Business Owner Advisory Board

DOWNLOAD

Written by The Alternative Board

Related posts

6 Top Money-Saving Tips for Business Owners
Jan. 31, 2023 | Posted by The Alternative Board
While nobody has a crystal ball, a lot of signs are pointing toward an impending recession. Consumer spending is slowing. The employment market is volatile. Inflation, while ebbing, is still rearing...
How To Create a Profit and Loss Statement
Jan. 25, 2023 | Posted by The Alternative Board
A profit and loss statement, also often referred to as an income statement, revenue statement, P&L statement, or P&L, provides business owners and potential investors a comprehensive and easy to...
How a Global Organization Didn’t Miss a Beat During the Pandemic
Apr. 13, 2022 | Posted by Dave Scarola
I am fresh off of a TAB Summit in Amsterdam where we met in person for the first time in over 2 years with 20 Master Partners representing 16 countries. What a magnificent gathering. It was great to...
This Addiction may be Costing You Millions
Jan. 7, 2022 | Posted by Joe Zente, TAB Austin
Let’s be brutally honest. When you sell…: Do you feel anxious to tell buyers why your product, service, or company is great? Are you more comfortable talking & presenting versus asking tough,...
5 Ways to Boost Cash Flow in 2022
Jan. 5, 2022 | Posted by The Alternative Board
We’ve said it time and again—the state of a company’s cash flow is among the most significant metrics that every CEO or business owner should track. That’s because cash flow “is a key indicator of...
5 Cost-Cutting Tips for the New Year
Jan. 3, 2022 | Posted by The Alternative Board
In 2022, businesses will continue to adapt to changing conditions in the global marketplace. But as much as things change, certain operational fundamentals remain the same. Key among those...
Financial Reports Every Business Needs
Dec. 15, 2021 | Posted by The Alternative Board
For the smooth running of a small business, no paperwork may be more essential than financial reports. These documents inform business owners and CEOs about the success or lack of success in past...
Tips on Grooming Your Business Successor
Aug. 2, 2021 | Posted by The Alternative Board
It may not seem possible now, but the day will come when you no longer run your business (either as a CEO or business owner). Recognizing this inevitability is the first step towards selecting and...
What to Tell Your Employees When Selling the Business
Jul. 29, 2021 | Posted by The Alternative Board
Selling a business is often a complicated process. One complicating factor for any CEO or business owner is determining what to tell employees about the pending sale, as well as when and how much....
When It’s Time To Sell Your Business
Jul. 15, 2021 | Posted by The Alternative Board
After all the hard work that goes into starting and maintaining a business, deciding years later to sell that business can be among the biggest challenges in a CEO or business owner’s career. You’re...