Expansion of the business is a natural issue that arises from an entrepreneur as his company develops. This is the natural stage of the life cycle of almost any company. Most of the world’s leading brands once started with a small shop, market tent, garage production. We have already been writing how to move a business to Japan. And now, we will give you some advice on how to expand your business globally.
If you are thinking about expanding your business, you need to understand that this entails certain risks. The expansion of the company will require more resources, time, effort. At the same time, businessmen have only two possibilities: either to develop or to perish. And this statement is not far from the truth, because competitors do not doze.
Advantages of expanding your business
- Better location. Location is important not only in business on real estate. Perhaps by opening a new office or shop in another country, you will find that it is more popular among buyers. In that case, you can hire international moving company Japan and move your business stress-free.
- More audience. When you begin to expand your company, you will enter new groups of consumers.
- New employees – new ideas. To expand the business (especially to other cities and countries), it is often necessary to hire new people. It is possible that you will find talented professionals who will bring new ideas to your business.
- More funding. Financial support for the company growth can not only cause you a nightmare but also open up new opportunities.
What are the ways to expand your business?
1. Opening the office or shop in a new place.
The new location is not the best way to expand the business. Well, at least that is what many small business owners claim. However, if you intend to build a chain of stores, you should know that you are still targeting one industry and one type of consumer. Therefore, you should remember the following:
- Make sure that your business shows steady growth over the past few years or quarters
- Make a business plan for opening a new store or office to expand your business
- Determine how will you finance the expansion of business
- Choose a location that will be best for your business, not your wallet
2. Using a franchising scheme to expand your business
The essence of franchising is to provide ready-made technology to other entrepreneurs. And get from them a percentage or a one-time payment for the right to use such a “turn-key business”. Companies such as McDonalds, Subway, Holiday Inn have expanded their business on this principle.
If you are looking for an option to expand your business without investments, then this is definitely not the right way. Franchising will require careful legal preparation and support of transactions, which will result in costs.
3. Licensing your brand
You may have paid much attention to the promotion of your business and the name of the company. In that case, consumers should have started to form what marketers call awareness of the brand. When you manage to do that, you can start selling a license for its name (trademark).
For example, you have a well-developed early childhood development center. Then you can offer the local stationery to print school notebooks using your company’s logo.
In order to attract a buyer of a license, your brand should represent something. In other words, it needs to have a certain weight and place in the minds of consumers.
4. Formation of a strategic alliance
A strategic partnership can be a very effective and powerful way to rapidly extend your business. Combining the resources of two firms can not only increase the profits of each in comparison but also increase the chances of surviving in a competitive struggle. The strategic alliance is one of the options to confront a larger company.
The only thing you need to remember: each of the parties must understand their commercial benefits and be interested in such a partnership.
What does this mean? Suppose your business was in the production of metal products. And then you suddenly decided to open a jewelry store. We hope this example makes it clear that this is a very dangerous strategy for expanding a business? The matter is that in business circles there are disputes if diversification is good or bad.
Our advice is simple: if you do not have enough money, do not do it. You need to diversify into those industries where you understand something. Otherwise, the risk is simply too big.
6. Entering new markets
Expand business in other countries is the first thing that comes to mind when the local market is already saturated with your products. In this case, really, it’s time to take a shot at other markets.
Some country can seem perfect for expanding the business. But who told you that your product is in demand there? We recommend that you first carefully study the markets of other countries. It may turn out that an area that is slightly farther will be attractive and more profitable.
7. Expansion of business on the Internet.
One day Bill Gates said that “by the end of 2002 there will be only two types of companies: those that are on the Internet, and those who do not have any business at all.” Perhaps he slightly exaggerated. But today, every company wants to have its data, contacts, description of goods and services on the Internet. So that the potential customers could find it.
If you want to expand your business, then remember that the key to success lies in two components: financial stability and competence. And once you decide to open your office in another country, there is no need to worry about global forwarding. Companies like Kokusai Express Japan will finish that for you. Good luck in expanding your company!