Expanding your business effectively means you can support your future and take advantage of any changes in the market. While this is essential to all companies, it is also vital that you know when you are ready and how best to expand to give your company the chance of survival without running late for your hard work so far.
You can expand your business in many ways once you are in a position to do so. This post looks into some of the things you can consider before expanding so you are aware of your options for this progression phase in your company’s life.
Optimize your Existing Market
You don’t always need to find new customers to help you with growth and expansion plans; you can use your current customer base to help you grow. It is well known that existing customers are more likely to make a repeat purchase than new customers. Focusing your expansion plans on those already buying from you can be a worthwhile avenue to explore. You need to segment your market and analyze who is most likely to buy from you by age, location, purchase history, economic status, or any other statistic you have to hand. Once you identify those who are more likely to make a purchase, you can push forward with your efforts on selling to this section to help sustain growth and sales.
Claim A Niche Market
To take the above point one step further, claiming a niche market means doubling down on your most profitable customer or sector and marketing yourself toward a specific demographic. Many businesses do this because it reduces their competition and allows them to better serve customers within this bracket by tailoring their options to meet their needs.
Once you intimately know your target audience and their pain points, you can work towards revolving your business around them for a more significant chance of success. For example, suppose you are in the energy sector. In that case, them using community solar lmi support can help you to niche down to low or middle-income households who are looking for cheaper energy that is more sustainable. Rather than serving your geographical area with general energy offers and suppliers, you can niche down to offer solar energy and focus on one sector of the community.
Moving into new markets means you are selling your existing product or service, not an entirely new customer base. This can be marketing it towards a different age bracket, i.e., those reaching the age of your current customer base, or moving into a new location and offering a different area the same as what you are already doing. Basically, this means you need to open up a new location or move to cover a wider area than you previously did, for example, offering delivery or more states or expanding your local delivery area.
While the brick-and-mortar retail sector is seeing a revival in the wake of the pandemic, over 70% of consumers still shop online, and if you haven’t offered online sales or delved into the e-commerce world, this is a viable option for any business. Look at who your product appeals to and set up a website and online presence to attract this audience from a wider catchment area. Whether you stay regional or national or go international, going digital with what you do can offer you a great chance of success in pushing forward with your company.
Partner With Other Business
Even as a small business, you will still have some value to other companies regardless of their size. Partnering with local businesses means expanding your customer market to include a more significant section of your community, which is ideal for those who rely on word of mouth and footfall, i.e., local bakeries or restaurants. Joining forces with other businesses in a complimentary sector can help you tap into new markets, such as offering healthy meal services to customers of a well-known gym or fitness brand to help reach a market that is already interested in what you offer. Be strategic about who you partner with and ensure their customers benefit from what you do and vice versa.
There are many ways you can expand your business and support growth. But knowing your options can help you to put a solid plan in place to get from where you are now to where you want to be to help you remain competitive and give your business longevity.