At some point in your business journey, expansion is a challenge that you must take. It is either go big or go home. If you have not reached that stage now, and you are still considering what things may be needed just in case, then you’ve just made the wisest choice. You foresee things and prepare for them.
Can You Afford an Expansion?
Substantial tasks like supply management, administration, marketing, and customer care are notorious for multiplying the cost of expansion. But luckily, almost all of them are available for outsourcing. For instance, the supply chain services from PTI include quality check, yard management, warehousing & distribution, and product packaging, which can be a big help for your company’s new branch. Imagine if you were to invest in equipment for those tasks by yourself. Your expansion’s cost will increase considerably.
Moreover, if you are trying to build your market in the new area, you must be prepared for the risk of failing. You should have a contingency asset that can help you to get out of debt, in case your expansion ends up disastrous. You should also consider consulting financial and legal experts about your plan. It is always better to be prepared for the worst than to regret it later.
Has Your Current Business Reached Its Goals?
Just like an empire, the cores of your first company must be strong enough before you can think about expanding your territory. And to measure such a stage, you can simply reflect on your company’s achievements in the past five years. Is your company a high achiever or an underperformer? Were your clients satisfied with your services? Do your profits grow? Be realistic in answering this question because your business’s future is at stake. And remember that maintaining a good reputation is much more important than pursuing the ungrounded ambition.
Have Your Competitors Expanded?
A careful observant is always at an advantage compared to the ones who make hasty decisions. Therefore, you must keep a close on your competitors to spy on their strategies and mistakes. If you can do this, you don’t have to repeat other people’s errors, and you can advance much faster then they do.
Besides, since you and your competitors have the same market, you can watch how your leads react to the expansion plan. Is your company’s brand strong enough to make your customers loyal to you? Or your audience is more of practical people who don’t care about the brand varieties in the products? The answer to such questions will later give you insights on how you should develop your goods better than your competitors’.