The financial industry can be highly competitive almost everywhere in the world, but for SMEs that are successful and experience good growth there are plenty of opportunities to expand even more.
However, it is important that you expand in the most appropriate way, depending on where your business is based, the economy at the time and the best opportunities. Here are four ways that growing finance SMEs can achieve success when looking to expand.
Grow Locally
The first step for most growing businesses should be to expand on a local scale. This could be through setting up a new office in the same place, to help deal with increasing orders and customer demand. Or it could be by opening a new branch in another city or town linked to where your SME is based.
This will give your SME a greater presence in a new region, making it easier to attract new clients in the area as well as retaining existing ones, as it demonstrates growth and your interest in establishing a base there. Plus, it is a great way to find and make the most of any untapped opportunities it may offer, especially if the financial market is fairly uncompetitive.
Expand Overseas
Expanding overseas demonstrates a real sign of success and in many ways, offers ample opportunities to grow. Firstly, you will need to conduct plenty of market research and competitor analysis into possible countries for expansion, as the sector could be quite different from your existing one.
If you can identify market opportunities and a strong strategy, then expanding into a foreign market could see enhanced growth. Ensure you make as many contacts as possible to aid the process, through social media and attending market networking events in the country. Expanding overseas can be risky but if it pays off then the rewards are definitely worth it.
Use Freelancers
For many finance SMEs, one of the most cost-effective and safe methods for expansion is to start using freelancers. Hiring more staff to work in house is a great way to grow your workforce and the business, but if you think the financial risk of employing more full-time staff is too great then freelancers offer an excellent alternative.
From identifying and working with sole traders to using the consulting services of individuals as and when you need them, many freelancers can really add to your SME. According to one survey, 79% of businesses use freelancers as part of their strategy. Plus, if the growth encounters problems or the freelance services aren’t good enough, you are not obliged to keep using or paying them.
Broaden Your Offering
Rather than increasing your production or existing services, another way to expand any finance SME is to begin offering other related services. Large businesses do it all the time, with banks constantly rolling out new products and it can work for SMEs as well. You may need to hire some new staff who are better versed in the field to do so, but it can be a great way to attract new clients and build on your existing base.
These four options can help any finance SME expand in a variety of ways. Hopefully one will best suit your enterprise and help it to grow.
How to Bring Your Small Business to the Next Level
Building a Business for the Freelance Economy
Australia’s Small Businesses Are Struggling. Here’s How Accessible Financing Can Help