This article is designed to be your ultimate guide on how to grow a business. The expansion and growth phase, as covered in the Business Legal Lifecycle book, is a pivotal moment where you’ll see your hard work from previous phases begin to pay off. Or if you’ve overlooked some crucial elements, the flaws in your business model will be brought to light and magnified…
We’ll help you steer clear of common misconceptions and pitfalls that many business owners face when learning how to grow a business. By following our insights and advice, you’ll set your business up for growth, prosperity, and a smoother transition into the next phase of the Business Legal Lifecycle: Estate Planning.
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Business Growth Strategies
It’s important to remember that only around 25% of businesses make it to 15 years or more before failing, and one of the key reasons is that they remain rigid. They don’t adapt. They don’t explore other options and broaden their horizons – these are all things you need to do to ensure business success.
Embarking on the journey of business growth requires a strategic approach, and selecting the right method is crucial for long-term success. Here are a few strategies to help you grow your business.
- Expanding to new premises or offices: This method involves opening additional locations for your existing business. This can help increase your customer reach, generate more revenue, and elevate your brand presence. However, it’s crucial to ensure that all systems, processes, and procedures are in place before expanding to avoid potential issues.
- Purchasing an existing business: Another option for business growth is acquiring an existing business that aligns with your expansion goals. This approach requires careful consideration of the value of the assets you are purchasing, how they will contribute to your expansion plans, and how the new business will integrate with your existing operations.
- Franchising: Franchising involves selling your business as a product for others to use. In this case, you’ll grant the franchisee the right to use your brand, systems, and processes in exchange for a fee. It’s essential to have all systems and procedures correctly established before franchising to ensure you’re selling a complete and functional business model.
- Licensing: Licensing is similar to franchising but usually involves granting permission for another party to use your intellectual property, such as a product, technology, or brand, for a specific purpose or in a specific territory. Licensing can help expand your brand and product reach without the need to manage the licensee’s operations directly.
Each of these methods offers unique opportunities and challenges, and the most suitable option will depend on your specific business, goals, and resources. It’s crucial to seek professional advice from accountants, lawyers, financial planners, and other consultants to ensure that your chosen growth method aligns with your overall objectives and plans for the future.
Business Growth Essentials
We’ve already covered how to start a business, now, let’s look at a few business growth essentials.
- Systems, processes, and procedures: Before expanding, ensure that your systems, processes, and procedures are well-established and efficient. This will minimise potential issues during expansion, franchising, or licensing. Avoid the mindset of fixing problems later, as this approach can lead to amplified issues and increased costs down the line.
- Market expansion opportunities: Research potential markets that your business can expand into and analyse the benefits of increasing your business and brand presence. Expanding into new markets can lead to increased revenue, customer reach, and brand recognition.
- Product desirability: Assess if your product or service is something that other business owners would want to use or incorporate into their businesses. This factor is crucial for determining the success of franchising or licensing opportunities.
- Specialist involvement: Consider whether you need to bring in a specialist to manage the expansion process. A specialist can provide valuable insights, manage new markets or locations, and help ensure a smooth transition.
Avoid common misconceptions:
- Believing that it doesn’t matter if your systems are not in place because buyers will figure it out: This approach can lead to dissatisfaction among franchisees or licensees and damage your brand’s reputation.
- Assuming you don’t have a brand to protect: Even during the expansion phase, it’s essential to maintain and strengthen your brand’s identity and reputation.
- Fearing the loss of control: It’s natural to feel concerned about losing control during expansion. However, implementing a well-structured management system can help maintain control while allowing your business to grow.
- Expanding solely based on others’ opinions: While advice from others can be valuable, it’s crucial to base your expansion decisions on thorough research and analysis, rather than simply following what others say.
- Attempting to manage multiple premises without a management structure: This approach can lead to inefficiencies and burnout. Establishing a solid management structure is crucial for successful expansion.
- Reluctance to trust others with your business: While it’s essential to be cautious, trusting and delegating tasks to others is necessary for growth. Surround yourself with a reliable team to support your business expansion.
By addressing these essential considerations during the Business Expansion phase, you’ll be well-prepared to grow your business and achieve long-term success.
Business Legal Lifecycle Can Help You Grow Your Business
Understanding how to grow your business is paramount to navigating the Business Expansion phase effectively. By carefully considering the strategies presented, such as expanding to new premises, purchasing existing businesses, franchising, and licensing, you’ll be better equipped to make informed decisions that align with your goals and resources.
By focusing on business growth essentials and avoiding common misconceptions, you’ll set your business on a path towards success and prosperity. Remember, the journey of business growth is a continuous learning experience, and the choices you make today will shape your business’s future.