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5 Ways to Expand Your Small Business

Expanding a Business Is a Delicate Process and Needs to Make Sense

ClockWhen the time comes for you to expand your small business, it can be both an exciting and stressful period. After all, there is a good chance that the business will enjoy even greater successes, yet there is still an underlying amount of risk in getting there.

In truth, expanding your small business is a delicate process. If you extend the business too much or in the wrong direction, then your business might suffer. But on the other hand, extend it smartly and appropriately, and you might enjoy a surprising increase in profits. If your business is ready to spread its wings, then consider these five ways to expand a small business and choose the avenue that fits your company best.

#1 – Take Your Company Online

If your business does not have an online presence, then it could be missing out on the benefits associated with having an online community. Consider building a website for your business that is both clear and concise and easy for guests to navigate. Also, start building a social media following by engaging your audience with interesting conversations and sharable posts or tweets.

#2 – Open a Second Location

If your business has a consistent bottom-line profit, then opening up a second location for your business might prove to be a profitable move. Before doing so, however, it is important to research consumer trends, regional competition, and other factors that may impact the popularity of your store in its proposed location.

#3 – Diversify Product Offerings

One of the most common ways to expand a business is to start offering adjacent products or services that complement the core products and services offered by the company. For example, if you own a shoe store, then you may consider adding socks and hosiery to your inventory. Or, if you already offer those products, then you may want to add other complementary garments like hats or gloves. Ultimately, whatever you decide to add needs to make sense for your core business or else consumers will get confused and shop elsewhere.

#4 – Merge With Another Business

Merging with another company doubles your business’s exposure and customer base, but just like the scenario above, this is a move that needs to make sense for your business’s core products or services or else it could backfire. Always be sure to check the business credit of a prospective partner, before engaging in a business relationship with them.

#5 – Expand Your Target Audience

If your business offers products and services to a specific audience, then consider what you need to do to increase the appeal of your company to attract a wider audience. This can be as simple as changing the wordage you use in your marketing campaigns, or as comprehensive as changing specific products or services. For example, if you sell products or services to college students, then consider widening your marketing net to include high school seniors or even juniors. You can create advertising campaigns for the parents of college-bound students if that makes sense for your business.

Regardless of which expansion method you choose for your business, do thorough research before moving forward to help minimize the risk and improve your chances of increasing your profit potential.

Photo Credit: William Warby, Flickr. 

Dave Donovan


Dave Donovan has written extensively for the web with a primary focus on articles targeting finance and business.