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Monday, 28th March 2022 | Sales,Marketing,Management

10 ways to prepare for expanding your small business

Small businesses start out small but they don't have to stay that way. If you'd like to grow in size and/or scope, here are 10 ideas on how to expand your small business.

Is your small business feeling cramped? Perhaps it's time to consider expanding. Expansion can bring new markets, increased sales, and broader reach—but it’s not a shift to take lightly. If you’re looking to expand your small business, consider these strategies. 

Research, research, research 

Once you’ve made the decision to expand your business it might be tempting to just jump in with both feet but the first, and arguably most important, step is to do your research. Among the topics you’ll want to explore are: 

  • Your current customers and what works (and doesn’t) for them
  • Your competitors
  • Where future opportunities might lie 

Perhaps you want to expand your business by conquering new markets, exporting internationally, creating licensing agreements or acquiring other businesses. Any of those strategies require a lot of preliminary research.

Recapture existing customers by strengthening your retention methods

Small business owners know it costs more to attract new customers than to keep existing ones. Research from Bain & Company puts a number on it: “A 5% increase in customer retention produces more than a 25% increase in profit.” If you’re looking to expand your business, now is the time to focus on your existing customers.

Prioritize customer service

Before you make any moves to expand, make sure your customer service is the very best it can be. Customers should look forward to interacting with your company and transactions should be stress-free.

Increase brand equity with a customer loyalty program

Loyalty programs bring customers back and that’s exactly what you want when you’re considering expanding. Strategic loyalty programs can foster goodwill with returning customers and bring in new ones—and they can help get the word out about your products or services. 

Build brand presence and engage with customers on social media

Put simply, your brand needs to be on social media. It’s one of the best ways to attract customers, build loyalty, and engage and grow your presence. Even better, social media knows no geographical boundaries so it’s an effective way to get into new markets. Treat your social media like any other part of your marketing strategy by making a plan and using the tools at your disposal to get the results you want. Make sure you post engaging and relevant content regularly. Also, test other new marketing and sales tactics, and make sure you measure what works so you can refine your strategy. 

Ask for referrals, reviews, testimonials

Nobody knows how you do business quite like your existing customers, which makes reviews and testimonials a natural (and free!) marketing tool. Make sure you’re harnessing the power of past successful relationships to bring in new leads by asking for Google Reviews of your business. These are particularly effective because they’re unbiased and can boost your brand. They can also help you identify where there’s room for improvement. 

Consider a franchise model

Franchising, where you license your business operations, is a way to gain market share with minimal capital output. A franchise is a joint venture between the franchisor (you) and the franchisee where you license your existing products, branding, and operations. The franchisee pays you a fee in exchange. It’s a way to monetize your proven idea and expand your business without taking on 100% of the burdens. 

Improve your lead generation

To fill your sales funnel, you need leads—and this goes double when you’re looking to expand. Start by building an email list and launch an email campaign. Then manage your lead nurturing using a customer relations management (CRM) system. These systems not only help you generate leads but also let you store your data, manage customer relationships, and identify sales opportunities all in one secured place. 

Participate in networking events, conferences and trade shows

Now is the time to make the most of face-to-face and hybrid networking events including conferences and trade shows. Especially for a business looking to expand, these events are critical to building brand awareness, engaging with others in your industry, nurturing leads and, ultimately, driving sales. 

Consider taking out a loan

Business loans are made for expanding businesses. They’re designed to help you take your good business model to the next level, covering expenses like advertising, real estate, maintenance, supplies, and salaries for new employees. Growth comes at a cost, and a small business loan is a far better source for that capital than your existing operating cash. 

Marketing, customer relations, lead generation, and capital: Expanding your business relies on the same strengths that starting your business did. Consider these 10 approaches to increase your chances of success.

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