When your small business reaches a high point of consistent success, the time might be right for it to grow. Expanding your business may enable you to better provide for your customers and, as a result, boost its performance.
If you’re ready for this step, here are some growth strategies to consider:
1. Research the competition
No matter what your small business offers, the marketplace is a competitive space with multiple vendors selling similar products or services. One way to stay ahead of the competition is to do thorough research on other businesses’ offerings and strategies and decide if any could work for your business. Exploring opportunities for your business and taking a chance to implement them could help you reach the next level.
2. Establish a loyalty program
Research shows that acquiring new customers is usually more expensive than selling to an existing customer. With a customer loyalty program, businesses can retain existing customers by encouraging them to come back while creating appeal for new consumers.
3. Identify opportunities that complement the business
Another way to expand your business is to update your offerings to sell products that complement your existing business. By learning your customers’ pain points and determining how you can solve them, you can take advantage of opportunities within your niche and further grow your business.
4. Consider entering a franchise model
A franchise model could work for your small business when sales are steadily high. Opening other branches of your business allows you to expand its reach, bringing in more customers and profits.
Franchising does give a small business owner new responsibilities, such as setting expectations and serving as a supervisor for franchise locations, so be sure this model works for you before committing to it.
5. Take over another business with an acquisition loan
Another way to expand your business is to acquire another company that complements your business with an acquisition loan, which allows you to purchase assets. Acquisition loans are typically given out to business owners who are looking to expand but don’t have the capital.
In acquisition loan applications, lenders consider several factors, including the business owner’s capability to successfully run their expanded business and pay back the loan. There are various types of acquisition loans, and to be eligible for one, your business must be operational for a specific time period, depending on the lender. Once your business meets the requirements, an acquisition loan can be a useful resource for acquiring the right business to expand yours.
There’s no one-size-fits-all approach to business growth, so explore your options to decide what could work for your small business. You’ve already been through so much to open your business, so expanding shouldn’t be overwhelming, but rather another exciting step in your journey.