Written by: Dr. Phillip Hearn, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
The journey to success often entails many different strategies. One such strategy is business expansion. Not just growth and development, there are so many more goals that can be fulfilled when we embark on this adventure into the unknown world of entrepreneurship ‒ including your own personal brand advancement or mental well-being because let's face it: being an entrepreneur isn't always easy. A lot goes through our minds before even starting up a company but at least one thing should never change regardless if things get tough.
Growing and expanding your business is a crucial part of running an effective, long-lasting company. It can mean opening up new locations or adding more products for sale in order to reach out further with what you do offer; it could also involve switching focus onto different markets so that customers who would otherwise go elsewhere will come to visit instead! However, this works best for each individual person ‒ there's no one size fits all solution when developing better strategies within their own organization. But one thing is sure, the benefits are huge because not only does expansion improve profitability by raising revenue margins, but also generates a better return on investment.
Here is why business expansion is so important to focus on:
Increase customer base
Any new business is responsible for customer retention, but expanding on the existing business will also require you to bring in new customers. Well, it so happens that customers are automatically attracted to a store that has multiple physical stores. The reasons being there is a brand value to it, experience, and many more factors. You will be able to attract new customers here, and because a fresh customer base is formed and your only job is to retain them. But also keep on adding to the list. These customers future-proof your business. Financial Center can provide you with the necessary tools to accomplish this!
Chance to reposition and rebrand
You can do so much more when you open a store in a new location. You can have the privileges of starting new, rebuilding your image, and rebranding your product. Opening up for a newer and bigger customer base can help you in repositioning and rebranding as it is. You can renew your marketing strategies to do a better job at it. You can also update your website and social pages to let people know about these new stores or product lines. Digital marketing campaigns can be very helpful in such cases, they make the neighborhood aware of the store and attract new customers.
Supports growing demand
Expanding allows you to meet the growing demand for your services or products. As an entrepreneur who experiences an overwhelming demand for your product, if you aren’t able to manage it well, the expansion will help you divide the load of customers and will also increase your percentage of profit as well as customers in a new location.
Sales volume and profit increase
When you have a business, profit is extremely important but almost always the last known goal. You need profitability in the company to reinvest in your business and incur more on the given profit. Increasing profitability is the cause of a steady and sustained increase in profit. Increasing the physical selling points of a business will allow you to do so. Say you have a normal 10% profit margin on any given product line or a selling place, if you increase them, you will have 10% on each line or place. This is the ultimate goal a business owner should have and expansion helps achieve it.
Risk distribution
Business and its risks go hand-in-hand. There is no saying ‘no’ to risks in any kind of business. But what you can do is be ready for it and have repair measures at your hand at any given time. Having one place of operation can only increase the risk of business because we never know what external or internal factors might affect the business. Having a single physical presence can harm in many ways than one if this is the case, but having two or multiple physical points will save you from this destruction. Business expansion saves you by distributing the risk.
Bottom line:
You can find many more reasons for business expansions like improved services, motivation, increasing investment appeal, improved ability, and also increasing employment. An excellent resource to fund your expansion is Financial Center. Growth is a very important goal to achieve and is also that much more difficult. Expansion being a strategy for growth will only help you!
Dr. Phillip Hearn, Executive Contributor Brainz Magazine
Dr. Phillip Hearn is a master in entrepreneurship, real estate investing, and motivational inspiration. Despite setbacks from a problematic childhood, Hearn learned the value of investing in himself and capitalizing on his strengths. He has since specialized in helping others discover their full potential, personally and professionally. He founded Mid American Capital Holdings, LLC, an acquisition focused company. Current subsidiaries include Phillip Speaks, specializing in public speaking and coaching; Financial Center, operating as a capital broker to help businesses grow their operations, and other subsidiaries which continues to expand. His mission: to collaborate as a problem solver to today’s challenges.
