Have you been considering expanding your business? Knowing not only how but when to grow your business in today’s economic climate is essential to the longevity of your company. Explore your options to discern whether or not it is in your business’s best interest to expand right now.
Are Your Customers Satisfied?
When toying with the idea of expansion, first consider your customers. “70% of buying experiences are based on how the customer feels they are being treated.”1 Are your patrons leaving your establishment empty-handed because of overcrowding or because you are out of stock on products? When you can no longer attend to your customers in a reasonable amount of time, expanding may be your best option.
Competitors: Are They Expanding?
Another factor that may persuade you to expand is if your competition is already expanding. If a business with which you directly compete is moving to a larger facility or introducing new products, there is an increased risk of your business losing customers and money.2
Growth in the Marketplace
Lastly, if your current industry is shifting and you see an opportunity for growth in other marketplaces, now may be the most opportune time to expand.2 New government regulations, a niche market or fresh innovative products may directly affect your current business.3 In order to maintain your financial stability, it may be best to expand to new products or other industries.
Is It Time to Relocate?
In the event that you do choose to expand your business, know that there are plenty of ways to do so. You can move to a new, larger, or different location more accessible to your customers. Conduct some research and identify an area that will benefit from your product or that is lacking your services. In the event that you choose a larger location, you may also be able to hire and train more employees, which is beneficial to the community.
Review Your Budget
It is six to seven times more expensive to attract a new customer than it is to keep an existing customer.4 If you are about to expand, focus on your current customer base and adapt your business’s offerings to fit your customers’ changing needs.5 Maybe you’ll decide to purchase new machinery, improve inventory or provide more services to a broader demographic.5
Timing is everything. Your business’s expansion will likely be a success if you review your finances, have faith in your products, trust your staff, and create a solid plan for growth.