So, congratulations your startup is a success.
You are bringing in revenue, and your brand is becoming more well known. But going from a micro concern to a medium one isn’t always a straight path. In fact, there can be quite a few bumps along the road, especially if you don’t manage your expansion in the right way. To find out how to do this read on for some help.
Locations – Startup To SME
First of all moving from a small to a medium-sized business can take many routes, and one of these that you should consider is growing the number of locations that you work in.
Obviously, this will only be suitable for some type of businesses. Namely, ones that have fix areas of work such as physical retail stores, restaurant, or service providers.
When thinking about adding to the locations that you offer your businesses in, remember that need should be the defining factor. It doesn’t matter how reasonable overheads are if their need isn’t there to sustain what you are offering. So let that dictate suitable locations to expand into above and beyond anything else.
Franchises – Startup To SME
Something else to consider if you have had success with a micro company is to take your original idea and offer out for franchise. Again this usually only works for particular types of businesses. As if you have one business that can cover the whole of the country it’s not worth franchising the idea out.
However, if your business does suit this model, then it can be a lucrative way of growing your name and brand, and so the overall value of the company while minimising the investment risk. This is because the franchise holders pay for the privilege of using your brand. So much of the finance needed to start up new branches is a guaranteed to return in fees, whether those branches are successful or not.
Of course, if you have a business that runs online and serves the entire country, you will need a different way of expanding. In this case, it can be helpful to consider one, or both of the following two options.
New products – Startup To SME
Firstly, consider expanding your product range to offer new things to your existing clientele. Yes, this does involve coming up with ideas for new items, as well as putting them through the development process. Something which is not all that cheap to do.
Luckily, there are plenty of ways to find the small business funding in which to expand in this way. Consider a capital advance against the future success of your company. Or look to outside investors to help you fund your expansion.
Go worldwide – Startup To SME
Secondly, for this type of business you can consider expanding the location you offer your product in globally. Unlike the extra locations or the franchise model, this does not rely on there being multiple points of sale scattered across a region or country.
Instead, it can still all be run centrally, but now your product is being offered to a wider market expanding your potential for sales, and profits.