As a business owner, the best way to make more money is to generate more business. But isn’t that the question of the year? How as a business can I grow my customer base and in turn make more profit? Every business owner seeks to expand at some point in the company’s life, and anyone immediately considering it should take these five tips under advisement:
1. Open Another Location
The best way to sell more goods is to give people another place to shop. Not only does this generate more exposure for you, but you can build or rent in another part of town and reach a different demographic than you did before. As for building a new facility, many companies rent equipment to local contractors or you can hire their services to create an expansion plan.
If opening a new location doesn’t suit you, consider diversifying your income stream. Instead of just selling a product or service, offer classes on it. Brand yourself as the expert and grow your name and reputation. Write columns in the local paper about the service and inform the public. Being seen as the expert on a specific topic will help to grow your brand and increase the number of customers who trust you, and thus, who purchase from you.
3. Open an Online Store
A large portion of all retail sales are performed through the internet. By designing a website for your business that helps you reach a larger number of people, it sets you up for generating sales even while you sleep. Using an online distribution center takes the hassle out of the process, as well; you would not be required to ship the products. Everything would be automated.
4. Merge with Another Business
Does another business do something that you could benefit from, and vice versa? Consider proposing a merger to the owner. This allows you to merge with another company, not only inheriting their customer base, but also letting you offer a new service to your existing clients. The key is to make sure the business will work well together; something like a hair loss clinic and a hair salon might not make the best business partners.
5. License Your Product
If you offer a unique service or product in your area, licensing can immediately generate income. Anyone who uses your product will have to pay royalty fees to you, and you will always be aware of how far your reach has spread. On the same note, it protects your intellectual property from theft, as any unlicensed use opens itself up to lawsuit.
While expanding your business is a very in depth process and there are many variables to consider, these are some great tips and ideas to get you started and thinking about the possibility and benefits of expanding your business. Make sure that it is the right time and option for your business, do your homework, and give it your all. If you have a good foundation under your feet, growing your business is a natural part of the process and can greatly benefit your business.
Author: Brionna Kennedy is native to the Pacific Northwest, growing up in Washington, then moving down to Oregon for college. She writes about fashion and business, but any subject will do. When she isn’t writing, she lives for the outdoors. Oregon has been the perfect setting to indulge her love of kayaking, rock climbing, and hiking. While researching this article Brionna took information from American Equipment Inc.
Published: February 6, 2014