5 Stages of Business Longevity: Expansion
Your business has achieved goals set in the early days of its existence. Now, it’s time to consider new goals and devise a plan to reach them. In our Business Longevity series, we examine strategies you can use to remove growth obstacles from your path.
As we look at stage four, we explore the possibility of expanding your business to grow capacity, deepen skillsets, and ultimately, revenue.
The 5 Stages of Business Longevity
Your business has matured; no longer the start up or modest outfit it was when it began. And while it feels good to reach key goals, it begs the question: “What’s next?” For some business owners, the answer is maintaining the current level of success. The business feels “right-sized” and is making a consistent profit at this stage. For others, it’s clear that growth potential exists – as does a desire to see that potential realized.
If you find your business fitting into the second category, there are several different ways that you might consider expanding:
- Grow your market share: Even when success is present, ask yourself: “Is my business maximizing its potential with the market(s) we serve?” If the answer is “no,” it could be the right time to consider leveling up on your competition. Consider incentives that encourage customers to try your product and/or service with attractive offers, discounts, or value-added benefits.
- Same product, new markets: If you have saturated your current market, perhaps it is time to consider a new geographic area, industry, or target audience that could benefit from your products and/or services.
- Diversify your offering: Have you and your team been dreaming up an innovative concept? Or perhaps there are add-on features that you can bundle with your current offerings. Now might be a good time to expand your portfolio of product and/or service offerings.
- Consider an acquisition: Are you paying out of pocket or enlisting outside help to provide that specific add-on service to your customers? Maybe it’s time to bring more value to customers through an “all under one roof” approach. For example, adding interior design services to your construction business or maintenance services for your existing product. Whatever the situation, acquiring a business whose goods/services compliment yours is a proven strategy to deepen your engagement with your customers over time, encouraging repeat business.
As you consider these strategies, our business banking team at Westfield Bank is here to provide you with the guidance, expertise, and perspective to achieve your expansion objectives. For information on preparing for the expansion of your business and avoiding growing pains, see our article on investing in business growth. We are also here to offer financing options to help make some of these strategies possible.