Ways to Successfully Expand a Business

Business expansion can be tricky because there are so many variables and things to consider. Many businesses expand slowly. Owners take the time to establish a solid customer base, and plan in advance for expenditures, such as equipment, space and workers. That way the business can expand without sacrificing the quality of the product or service, and without risking financial ruin. Expansion will not be successful, if the product suffers. An inferior product can also cause the business to fail entirely.

A small bakery, for example, becomes famous for a unique cheesecake flavor. The demand increases, and the owner decides to expand production of that one product. Small batches of the product are easy to make, but putting the product on a production line proves difficult. In order to meet demand, the flour is changed to a brand that is readily accessible. The production demands are met, but the flavor is not as good as the original cheesecake. Loyal customers are disappointed in the end result, so they stop buying that cheesecake. New customers cannot figure out what all the fuss was about, so after trying one, they do not purchase any more cheesecakes. If a product is special, do not make changes to it. Find a way to get the process right so the product remains the same. Taking the extra time to work out all the details will be worth it in the long run.

There will be problems and issues that owners cannot anticipate before entering an expansion phase. It is important to build up a creative team with many areas of expertise. A construction company decides to venture into commercial projects instead of taking only residential jobs. Hire project managers with commercial experience, consult commercial contractors regarding equipment needs, and discuss finances with an accountant before taking that first commercial project. Owners who surround themselves with the most capable people available are better suited to successfully expand their business. Find a mentor, seek out an informative article regarding scaling up a business, and plan carefully. All obstacles will not be avoided, but meeting challenges are easier with the right information, and the proper human resources.