Have you been planning for business growth lately? Have you learned the things that you need to look for when assessing for an expansion? Well, if you’ve been thinking about this for several nights or even several months, then you need not fret about it. This article will guide you through the things you need to look into when looking for opportunities for expansion.
A lot of business owners look forward to the time when their business is ready to expand; however, achieving this can be a lot more challenging than is usually given credit. There are many elements that you need to consider first such as whether your business is stable financially or if the timing is right to expand given the current market conditions?
9 Things To Look For When Assessing Business Expansion Opportunities
Here is a list of 9 things you need to consider when assessing whether to go on a business expansion or not
- Re-examine your Business Plan. As your company grows, planning can be crucial which means you’ll likely need to update your business plan. Your business plan is the first place to look to see where opportunities exist for you to expand your business. Your numbers need to stack up and you may discover that when reviewing your business plan that it’s not the right time or that there’s a future project that hasn’t yet been realized with the potential to sabotage your business expansion.
- Set Goals and Targets to Achieve. Know in intimate detail what you want to be achieving through business expansion. Any good Business Mentor or Business Coach will tell you that for every expansion opportunity, there needs to be a real reason, set goals and targets that the company wants to achieve. These goals must be realistic enough so that they can be achieved in due time despite the often unpredictable challenges that business expansion can cause. Having goals set firmly will ensure your business has a path to follow and you get the best opportunity for the smooth flow of operations.
- Financial Stability. Before considering business expansion, you must see to it that your business is financially stable to support the many operations that may be undertaken during the process. Make sure your numbers really do add up, that you’ve got risks covered as best you can and that you’ve got a financial life-line you can grab hold of should things really go badly.
- Assess for local expansion. While you may have visions of global dominance, test your readiness for business expansion locally. This is the easiest way to assess how able you and your team are at adapting and just how committed to the project you are. Local expansion will take away some of the inconvenient barriers to smooth transition such as language, time zone, legal structures, taxation, records keeping, off book transactions etc. Basically you can easily monitor the progress of things that aren’t difficult to coordinate and even have closer and better control.
- Assess for international expansion. This option can be a challenging one since it is likely to consume a lot of time just in the research and investigation stage. Establishing your company and brand in a foreign country is something that you’ll definitely need expert help with particularly if you’re unfamiliar with the language, customs, culture or traditions of the target market for your expansion. Make connections through business associations and talk to business owners who have already made the move successfully. Learn through the mistakes of others so that you minimize the cost of your own mistakes.
- Industry and Market. Generally, industry and market play a vital role in any business expansion since they will help you decide whether the target market is worth the investment for your company. David Guest, advises business owners to hire market specialists in the target market who will conduct market research to assure them of favorable market demand before even considering putting down any money.
- Duration of the Opportunity. Time based opportunities can be the absolute downfall of a successful business expansion. The best way to take advantage of an opportunity to expand your business when the window of opportunity is only open for a short duration is to do all your research, groundwork and verification of the opportunity ahead of time. A good business mentor will tell you to be ready and patient – wait for the opportunity to approach you. That way you have the upper hand in the negotiations, with time on your side rather than anyone else’s.
- Competence & Your Winning Team. The competence factor must be examined carefully since as an entrepreneur, you must be highly motivated as well as competent enough to hurdle every challenge in the business. And even then to be the victor in a high risk, high return business expansion it pays to surround yourself with smart and talented people who know what the goals and targets are and will work as diligently as you to make it happen.
- Economic Environment. It is a must that you be able to analyze the economic and to some extent the political environment of the target market you’re looking to expand into with your business. Long before you have any plans, begin watching the monetary situation of the place as well as the government’s policy on licensing and taxation. Only with continuous monitoring will you be able to determine with some certainty whether you’re going to get the timing right or not.
These 9 things will give you a heads up on when you’re ready, the timings ready and the markets ready for business expansion… And with these insights anything is possible for you.