It's natural to have stressful days, sleepless nights, mood swings, and being incapable to spend quality time with friends and family when you have so much at stake! Yes, we are talking about entrepreneurs who carry a bundle of professional responsibilities to get over with every single day. It's justified for entrepreneurs to wish they had more hours in a day so they can complete more tasks before the day ends.
There are different opinions about whether being an employee is more difficult than being an employer. Employees and employers hold different experiences, and on some cases have conflicting interests. Their points of views are expected to be different and are usually based on their past experiences, their circumstances, and their vision about the future.
Employees wish they were their own employers, as they could then enjoy a lavish lifestyle being the sole owner of an entrepreneurial project. However, it's not as easy as it may sound. Entrepreneurship requires courage, personal devotion to break records every day, the urge for constant improvement, the capability to withstand failure, and then still being happy with how the future unfolds.
It's challenging to start a business, but running it is even more so. There are numerous aspects that an entrepreneur cannot afford to overlook. For instance, socio-political scenarios, the economy, market trends, competitors, stake holders, and internal statistics etc. have varied affects on an enterprise, and an entrepreneur needs to keep an eye on all such issues. Amidst all these concerns, there is yet another tough job seeking entrepreneurs' attention, i.e. business expansion.
You start your independent business having certain long-term goals and strategies in mind. An entrepreneur is not someone who sits back and relaxes just because they did a successful start-up. In fact, entrepreneurs are risk-takers. They always think about the next level as if in a video game. The constant urge of climbing up the ladder of success is something that just cannot be separated from an entrepreneur.
So, for all those of you who qualify our definition of entrepreneurs, below are some exceptionally rewarding business expansion strategies you can employ for even better results that you have had so far.
1. Hit the Next Ground
Physical expansion is by far the very first option that pops up in mind when you think about expanding your entrepreneurial project. However, you need to be exceedingly cautious in this regard as it poses more risk factors than a few other alternatives that'll be discussed later.
Take help from the following checklist and opt for opening up at another location only if you answer ‘yes' for each of the following questions.
- You have consistently been assuming bottom-line profit since a few years?
- Your business has grown considerably much from where you started off?
- Your company/firm is flexible enough to withstand economic shifts?
- Your industry is expected to show upward trends in the light of socio-economic indicators?
- Your management team is willing to go the extra mile in order to establish and stabilize the new location?
- You have devised a holistic business plan and contingency plan too?
- You either have handsome amount of retained earnings or a promising investor?
- When it comes to deciding upon the new physical location, you have sought for available options on the basis of their success potential? Opt for what is in the best interest of your business and not the budget.
2. Look for Other Promising Segments
The marketing plan of a given business venture states and defines its various marketing approaches. One of those important ones is the selection of a particular market segment(s) the business will target initially.
You may start off targeting only one segment in the beginning. However, as the business grows, new segments keep entering your scope of interest. For instance, the globally renowned brand called NIVEA by Beiersdorf was initially promoted and advertised for women only. Later on, the company launched the product specifically designed for men.
Important to note here is the fact that NIVEA is the pioneer brand that considered men as a potential segment for skincare products. It was only later that countless brands followed the strategy introduced by the pioneer brand. You can also think of such creative approaches to gain the first mover advantage.
3. Related or Unrelated Diversification
You must have heard of terms like vertical extension (aka line extension), and horizontal extension (aka product extension). Business expansion ideas like these really work out, provided the strategy is wisely planned, well-executed, and closely monitored throughout.
Another similar concept is of diversification that is about launching a new business along with the existing one. If you enter another business within your current industry, it'll be known as related diversification.
For instance, one of the leading companies called Samsung manufactures mobile phones, televisions, cameras, computers, peripherals, home appliances, etc. All these products are different yet pertain to a single industry of electronic gadgets and appliances.
On the other hand, introducing a new business in a new industry altogether is termed as unrelated diversification. For instance, the one and only conglomerate MNC called 3M – the manufacturer of hundreds of distinct brands globally. 3M is into several diversified yet successful businesses segments including communication, electronics, health care, transportation, manufacturing, office, home and leisure, safety and security, and others.
Entrepreneurs become millionaires and billionaires through these promising expansion strategies. However, it requires time, patience, and a lot of struggle to lead as a big fish of the industry.
4. Assume Tremendous Returns from Public Contracts
Frequently, it happens that a small and considerably lesser known business/brand eventually turns out to be the most talked about name in the market. For the entrepreneur of that business, the moment is no less than a dream come true. It mostly happens when the entrepreneur wins a government contract.
Business opportunities in public sector are hard to achieve, but once you get there, you tend to overcome numerous external threats. Irrespective of the industry, federal contracts are huge. Entrepreneurs from industries like construction, manufacturing, transportation, communication, etc. bid for public contracts.
Patience, research, and homework are components of the perfect recipe to win public contracts. They really have the power to take your business to new horizons.
5. Go Viral
Entrepreneurs must not miss out on any given opportunity to promote their business. Market your brand via Internet using social media websites, direct mail, newsletters, and other promotional content. It'll help spread your brand name among new market segments long before you actually hit them.
Use these five ideas and expand your business in new ways.