Growing your business is the goal of any new business owner. Starting up is excellent, getting those first customers are wonderful, but it is only when you surpass breaking even can you officially say that you have made it.
Growing, however, is not done easily. It is also often not done organically, either. While the customers might grow through word of mouth, it is mostly on you to facilitate the increase in revenue. More importantly, however, is the increase in systems management.
Ways to Grow Your Business
There are many ways to grow your business. You can accept investment, make your business public, grow it organically, or even acquire a smaller company to increase your offerings. Though there might be many pathways, when it boils down to it, you often have one of two options when it comes to expansion.
You can either expand your own operations.
Or you can acquire another company that will provide ready-made operations you can integrate into your service or product suite.
How you accomplish these two options can vary massively, but there will be some steps you will want to take no matter which path you choose:
Expanding your operations can only occur when demand exceeds your means. Waiting for order to rise is a sure-fire way to let every one of your customers down. You need to set the framework for expansion in place long before it is necessary.
Set the Framework in Place
Thankfully with the rise of SaaS and Cloud computing, this is more budget-friendly than ever. You often don’t need to buy a very expensive enterprise-level of software right off the bat, for example. Instead, you can pay for the level of support that you need.
The same applies to your Cloud accounts. As you can add more data space or less whenever you want, expansion can easily be accommodated.
By setting the framework in place with these two tools, you can have everything that you need to accommodate larger processing orders and data analysis easily. You will want to be very thorough when researching which software and service plan is right for you and your future aims for your business for the best results.
Expand in New Locations or Directions
With these frameworks in place, you can then decide on the method of expansion. So far, the only thing you have prepared is for an increase in customer or client demand. Having the right systems in place will handle any organic increase in custom, but it won’t drive your growth in the way you want.
That is why you will want to look at expanding in either new locations or directions. Opening another store will introduce your brand to a whole new community of customers. Offering a new product or service suite will make your business more appealing to a broader range of customers. You can do both, but you will want to focus on one method at a time for the best results.
The second way to grow your business is through what is known as a business acquisition. This will be for larger companies who have the means to expand operations, not just volume finally. When developing your business in this way, you need to be very careful who you partner with in this business acquisition or merger matters. Their finances matter. Their history matters, and how you handle the merger matters.
Do Your Due Diligence
When acquiring a new company through acquisition or a merger, the first thing you will need to do is your due diligence. Typically, once a deal has been struck, both businesses will open their books to the other party. It is here that you will want to hire an acquisitions specialist – often an attorney.
Doing your due diligence means ensuring that the books are solid, no fraud or other nefarious dealings is going on behind your back, and that
Ensure Everything is By the Books
When drafting and signing legal documents, you need to ensure that one, the documents in question are clear-cut and understandable, and two, that they are officially notarized. You never want to go into a new business partnership without having all your ducks in a row, after all.
To ensure this, you will want to have all your documents checked over and the signing process to be monitored by notary personnel. Notary services are easy to find through Superior Notary Services, and hiring such a specialist can take out any complications that signing the document might arise in the future. A business partner who attempts to back out of your notarized agreement won’t have much water to stand on.
Migrate to One System
Once everything is in writing and the new business is yours, you will need to start properly integrating it into your company. Though you won’t want to interfere with what made the business so unique and successful, you will want to merge your data with your new business’ data.
The best way to do that is to migrate all data to one system. This will require enterprise resource planning (ERP) levels of software to do successfully. Operating such a system on the cloud will also help substantially as it ensures you have instant data updates for your separate offices and divisions.
What to Remember Before You Attempt Expansion
Growing your business is an exciting time, but excitement can easily result in errors. Do your due diligence and plan accordingly so that you expand successfully instead of sinking your money into a failed project.