The current business economy is moving ahead, but reports suggest a “bifurcated” economy with some areas glowing green, others flashing warning lights and others suggesting recession. So, how does your business plan to navigate these tricky waters? When your goal is to capture more value and your share of the market, and to be able to ride out future fluctuations while maintaining consistently healthy, it’s necessary for your business to adapt, not stay the same. If your new year’s resolutions include growth, expansion, or diversification, this article is for you.
Growing your business isn’t something that just happens by accident overnight. It requires knowledge, effort and planning. If you’re not sure where to begin, here are some tips:
When we think of “growing” a business, we almost always think about expanding to new areas. However, the first thing you should examine is those areas where you are already successful. Ask yourself what you can do to improve your visibility and share in what you already do best.
Are you the go-to provider? Are you the brand that everyone immediately thinks of when your good or service is required? If not, this is where to start. Why spend time and money to gamble on new ventures when there is still more work to be done in your own backyard?
Refine Your Products and Services
In the context of these questions, you also need to take the time to examine your products and services to see what you can change or improve upon. Does it meet all of the needs of the customers as it is? Are there other “versions” of your products available from your competitors? What do these versions have that yours do not? What can you do to fix this and compete? Can you throw out pieces in a product line that don’t perform and focus on a specific product?
The goal here is to offer modified versions of your existing products and services to those that might want them, or to clarify a product that serves multiple markets through a single product utilized multiple ways. Rather than having to go to a competitor, customers can now come straight to you regardless of which version of a product they are seeking.
By refining your inventory, you can help expand by targeting a range of smaller, niche audiences where you have yet to gain a foothold. This can drive your competitors out of the market and solidify your brand as the leader in the field.
Expand to New Markets
Of course, growing businesses do need to stretch out in many different directions, so looking around for new ground is the next logical step after you’ve solidified your place in your existing markets.
There are actually several meanings to the term “new market,” and when you talk about expanding, it’s important to know exactly what you have in mind. Are you considering reaching out to a new targeted customer population or demographic? Trying to distribute to a new geographical area? Bringing in a completely new line of products?
All of these fall under the umbrella “expanding the business,” and all of them are viable options. Depending on a number of factors you might be considering expanding in one area or many.
Whichever direction you choose, expanding to new markets takes time and effort — and serious planning.
Diversify Your Products and Services
When you are looking at what you have to offer, in addition to the refining, clarifying and winnowing process mentioned above, you might also want to consider expanding your product line. What new products can you offer to the public? What new services are you willing to provide? The list can be short, with just a couple of new options, or it can be much longer. Either way, this is often a gamble that can result in great rewards when done properly.
Regardless of which strategy for growth and stability is right for you and your business, funding is a key driver for any strategy. You can’t do much if you aren’t able to afford it, which is where we come in.
Loan brokers help match you to the right money sources, and the right lending types. Whether you need equipment, facilitates, operating credit, bridge loans to help you move to a larger facility or any other sort of loan, our brokers work with you to match the right funding with your business strategy.
If you would like to know more about who we are and what services we can offer, look at our options for business financing to target the right funding for your growth objectives.