What do you think is the second or third priority of a start-up business? Every business starts with the basic aim of profiting through sales of its products or services but it is not just the mere concept of thinking that will help you reach your goals. Businesses should start with the aim to gain a considerable market share and should have a through plan.
Nevertheless, the question that arises in the mind of a businessman is what if the decision of growing is being taken too early. Should a business go through the natural course like every other business does before expanding i.e. as market demand rises and retailers order more, you start planning expansion or just leap into an opportunity that is not even promising, like cheap rentals for commercial stores and outlets. It is always advisable for small businesses to plan expansion after their sales have reached the maximum level.
You, as an entrepreneur of a start-up business have to think all the way through before considering expansion seriously. A three-step process might help. The steps are outlined as:
A High-Level Direction
During a normal working day, you might dream of several different things regarding your business. What you need to do is turn those dreams into an ambition, a driving force to travel towards the right direction.
An Action Plan
You have to have a plan for achieving your ultimate goal. When thinking of an action plan, you need creativity, calculations, strategies and the leading force to drive your business towards success. “Plateau Planning” is an approach that tells you to climb a plateau on a mountain at a time. Hurrying over the hike will make you stumble and will ultimately lead to your non-existence. The same goes for businesses. Business expansion through a natural course will give you the time to think and plan carefully.
A strong and stable platform is essential for a growing business. What makes a strong and stable platform? When you move towards expansion, make sure that you have enough employees, technical and creative skills and equipment needed to sustain that climb. Expansion in an un-organized manner will lead to all parts of the business crumbling down. Complete Control and keeping a tight leash is necessary during expansions.
There are several examples of a fast and unplanned expansion into local and foreign markets. Some of them survived but many failed due to the inability of catering to real customer demands. Some examples include:
*Wendy’s American Fast Food chain shut their 71 stores across Japan at once due to inadequate planning and failing to satisfy Japanese palates.
*Best Buy (Electronics & Entertainment Retailer) closed its outlets in Europe, China and Turkey because, amongst several other reasons, it failed to differentiate its product line from those existing in the local market.
Scaling Retail is just a click away to guide you on the natural course of business expansion and the adverse effects of rushed expansions.