Top 8 Business Expansion Opportunities: Which one is for you?
Business expansion is always on the horizon of small businesses. And for most entrepreneurs, expansions are anticipated events. It signifies growth, opens more opportunities and validates the business feasibility of the idea. However, from the viewpoint of most Brisbane accountants, bookkeepers and other business professionals, business expansions are not so simple. They are just as exciting, complicated and risky as setting up the business.
Here are eight of the most common ways to expand;
Franchising is granting other companies to operate the same business as you are running. In exchange for a fee, the franchisor or the original owner of the business lets other businesses use the brand, manufacture and sell the product and offer the same services. The original owner is able to generate additional income from the franchise fees and residual income. Franchising terms and fees all depends on the nature of the business and should be stated on the contract.
2. Setting up a new branch
This is the straightforward and most preferred way of business expansion. Opening a new branch is capturing another market group in another location, thus, increasing the bottom line of the company. The main challenge of setting up a new branch is capitalisation. You can either bring in more funds into the company or set aside company earnings for it.
Diversifying your business is a safe and sensible way of expansion. Offering new and relevant products or services to your customers will double your income. You can also take advantage of leveraging the market campaign with the more established and known products. Examples of successfully diversified companies who have grown their operations by adding new products include Samsung, Nestle and Procter & Gamble.
4. Merging with another business
Another way to expand your business is by acquiring another business that would either supplement or complement your operations. Partnering with another established business will bring together the assets, the customer base and operational efficiencies. This type of business expansion is risky, yet can be highly successful with the right partner.
5. Licensing your product
If you are keener on product creation and development, licensing might be the best way for you to expand your operations. Licensing means giving or selling the right to manufacture, sell use or distribute a product, a design or an intellectual property. The creator of the product will still earn from licensing and will free up time to focus on developing new products.
6. Go online
Still operating in the traditional brick and mortar business setup? It’s high time you bring your business online. More and more people are shifting to the convenience of virtual shopping. Setting up a website for your business is inexpensive and easy. An online store will give you a wider customer reach, savings on operational costs and non-stop store hours.
7. Going global
Bringing your brand, product and company to the world is a major step up. Joining the international market will extensively increase your market reach and sales opportunities. You can open stores in other countries, export your products or sell directly through online stores.
8. Going public
Do you have great expansion opportunities but not enough cash to fund it? Going from a private entity to a public corporation is an easy way of procuring additional funding into the company. It means offering parts of your business to the public while retaining control of the company.
Business expansion is a major step up for the company. Just like any major endeavours, expansions also come with risks and challenges. The key to a successful business expansion is knowing how to do it. A thorough assessment of your business model, expansion opportunities and company structure are musts. A consultation with the business experts – lawyers, bookkeepers and accountants in Brisbane is recommended. Take advantage of the acumen, expertise and hindsight of the business professionals.