How to expand your business

Maybe your business is doing well and you are starting to think about strategies for
expanding it. Or, perhaps you feel your business has been steady but might be in need of
an expansion to attract more customers and increase your profits. There are several ways
you can encourage business growth and the right strategy for your business will depend on
the type of business you own and how much time and money you have to invest into your
business’ growth.[1]

Method 1
Increasing Your Business Locations and Your Staff
1.

1
Consider opening another location in a different area. Think about physically
expanding your business by opening another location in a different area to gain more
customers. Always do careful research, planning, and budgeting before you do a physical
 expansion. Your business should be able to maintain a consistent bottom-line profit and
have steady growth over the past three to four years.[2]
 You should also consult business trends to confirm your company has enough staying
power to justify another physical location. Draw up a business plan for the new location so
you can be sure you have enough financing and staff to keep the new location afloat.
 Choose a location that will help to foster your business, preferably in proximity to your
customer base. Consider if the second location will help to reinforce the image and
branding of your business.[3] Think about whether or not the new location will attract new
customers as well.
 You should also organize a management team to help get the new location going. Put your
strongest team members at the new location to ensure it gets off the ground smoothly.
2.

2
Franchise your business. Franchising is when you offer up your business as an
investment opportunity, where other business owners or investors can open up other
 locations of your business and buy into your business’ product and branding. Going for
franchising will also expand your business nationally and potentially, internationally.[4]
 To get the franchising process going, you should consult with a franchising lawyer and with
a business mentor who has gone through the franchising process before. You may also
want to join the International Franchise Association so you can make contacts within the
business community and get advice and guidance on the franchising process.
3.

3
Merge locations with an existing business. Another option for expansion is merging
your business with an existing business, thereby taking over their physical location and site
of operations. Merging with another business if often done if a business is going bankrupt
or struggling financially. The buy out will then allow the other business to stay afloat and
potentially flourish under the guidance and support of the more profitable business. [5]
 You might decide to merge with a direct competitor that offers the same service as you or
you might consider diversifying your products and services by joining with a different type
 of business entirely. In some cases, you might just buy the name and location without
adopting the practices of the business.
 If you decide to merge with another business, you should focus on staff retention, where
you keep or rehire the failing business’ best employees, and customer retention, where you
work hard to keep the failing business’ existing customer base.
 You can also merge the business locations so the businesses appear related or in tandem
with each other. You may update the technology of the business you merged with so it
matches your business’ system. You should also share branding and marketing strategies
so the businesses feel in sync with one another.
4.

4
Hire more staff to better serve your existing customers. If you feel your business is
going well and you want to maintain the high quality customer service your business has
become known for, you may consider hiring more staff. Look for staff that can work in a
variety of areas or departments in your business and individuals who bring energy and
 excitement to the business. Maintaining high customer service standards will only help your
business expand further and flourish.
 Another option is to promote top employees to manager positions or to positions at a
second business location. Internal promotions can help to boost employee morale and
show your employees that expanding the business will directly affect them and benefit
them.

Method 2
Diversifying Your Business
1.

1
Sell complementary products or services. If you already have customers who are
engaged in your business and buying your products, you may want to offer other products
or services that complement your existing products. If you have a clothing line, for example,
you may diversify by selling accessories like shoes and bags to complement your clothing
 line. This will allow you to have multiple revenue streams and increase the inventory of
your business.[6]
 You may also focus on providing additional services at your business. If you own a car
garage, for example, you may offer car detailing and custom cleaning services for cars to
complement your main revenue source.
2.

2
Offer tours and classes at your business location. Expand your business, and your
profits, by offering tours of your business location or classes that relate to your business
production. Focus on giving customers access to your business in new and interactive
ways, as this will improve your customer base and expand your business model.[7]
 This option is especially beneficial for speciality businesses, such as a high end bakery or a
custom pottery shop. You could offer night classes on making certain baked goods or hold
tours of the custom pottery shop that shows off the artistic process of the shop’s artisans.
 Farms, wineries, and other agricultural businesses can also benefit from tours. Customers
may be interested in the production methods of crops or welfare of animals.