Your small business must grow to reach its full potential. The amount of growth depends on you, but to turn a small business into a big one, you have to set goals, diversify and expand. As your business gets bigger, you will develop strategies to foster and continue that growth. Eventually, you can even ally and merge with other businesses to ultimately become a large, successful company.
Your small business won’t grow — at least at the rate you want it to — if you don’t have goals and a plan to reach them. As a small business owner, you must be savvy enough to recognize market opportunities when they present themselves and be quick to act on them. Your products should deliver clear, definable benefits to your customers and you must present a challenging, rewarding work environment for your employees. When these aspects are firing on all cylinders, you will be able to increase your sales, which will increase your capital and ultimately spearhead your business’s growth.
You can be successful, but you won’t experience much growth if you only focus on one product. Coca-Cola doesn’t just sell soda in red cans. It also sells juice, sports drinks and bottled water. Apple manufactures computers, MP3 players, phones and tablets. These are examples of major corporations that grew due in large part to the diversity of the products offered. However, don’t start concentrating on other products until your primary products are selling well and your customers are satisfied with the results. Spread your resources too thin too early and it can hinder your small business’s growth rather than promote it
You have a goal and a diverse range of products and/or services. The next step to grow your small business is to expand. You will need a capital to follow through with expansion, especially when it comes to financing. Lenders want to see growth in both the business’s revenues and net worth. Expansion most often involves opening new locations. You’ll start with a single new location in an area you’ve identified in your business plan as profitable and accessible. Once that location is stable and successful, you can expand to another location, then another and so on. You can also license your products to be sold at other retailers. This will help grow your profit and exposure and allow you to open more locations.
Eventually your small business will expand to the point where you begin to outgrow your competitors. When this happens, you can grow your business quickly by merging with a smaller company. You will add the acquired business’s locations, products and even staff. You can keep it in place as a subsidiary of your business or fully integrate it and change the name and products to mirror your own. Either way, your small business has grown to a level where you have multiple locations and avenues to get your products to your customers.