How to Expand Your Business
You developed a comprehensive business plan when you opened your business.
Now you want to expand and grow. It's time to review the business plan you
have in place and modify it to reflect your plans for expansion.
A detailed plan is an excellent evaluation tool that you can use to spot any
potential weaknesses or problem areas in your proposed expansion. It's always
easier and cheaper to rewrite a plan than to change the direction of your expansion
once you begin.
When to expand the business can be a big problem to some business owners.
However, this should not be a problem as you are already in business and that
makes you competent enough to respond to increased demand or new needs in
the market you are already operating in.
Business expansion comes in different forms. One can expand the business by
increasing the production capacity through acquisition of additional production
equipment. Others expand their businesses by setting up new branches, while
others can do so by diversifying into related or unrelated business lines.
The timing of business expansion is as important as the good timing of starting
a new business. Bad timing can be disastrous and should be avoided at all cost.
(assuming that you have been in that business for a while and understand the
market needs better and how the industry you belong to behaves).
The issue of business expansion should be approached from the market needs
perspective. If there is unprecedented demand for your product or services
which is not situational, there is need to grab that opportunity and match
the increased demand with increased supply of your product and services.
(Situational increases are increases caused by certain events that have occurred
in the market for that moment and these could be predictable or unpredictable.
Situational increases in demand are not sustainable and should be responded
to differently than through business expansion)
In a nutshell, growth in demand for product and services is the basis for
business expansion. Plan for it, recognize it, and act accordingly.
(adapted from Alexander Magwada, EMPRETEC)
Sample Business Expansion Plan
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