Not a few business people who think that business expansion is something that is relatively heavy. However, every business person must already know that an expansive business will bring better results in any aspect. Doing business expansion in various forms, either by opening a new physical store from what has been only selling online, adding variety of products, and so on must be done with careful consideration.
Steps to Doing Business Expansion
Steps & Tips to Do for Business Expansion Before expanding the business, there are 3 steps that must be taken as a form of consideration in expanding the business. These stages are as follows:
1. Make a careful planning
Because a business without good planning is a business that is not ready to grow, so does expansion. There are several important things that must be planned:
The business is ready to be expanded because of smooth sales and regular customers.
In the next five years, businesses must have their own products with their own brands and can be produced by themselves.
The target market is very broad and demand is very large, so it is necessary to present a new market to accommodate sales.
New employees are needed so that all forms of operational activities can run continuously, and the sales process becomes faster and more effective.
After knowing some important things above, the next step is to develop a plan for expansion.
Increase product inventory to be able to serve the increasing market demand.
Make a variety of products so that customers have a large selection of products that can be purchased.
Add a new warehouse to accommodate more and more products.
Open a physical / offline store or online shop that aims to expand the market.
Increase the number of employees to increase the effectiveness and efficiency of product sales and support a variety of other operational activities.
Expanding sales area targets, for example from those that have only focused on Jabodetabek, will later cover the entire island of Java, or Java and Sumatra, and so on.
2. Determine the business model
When expanding, the business model will never be the same as the previous business model. In the long stages, new standard operating procedures (SOP) will be needed. And if you have new employees, then business activities will also change slowly. In addition, the method of selling will also change. The importance of determining a business model will help you determine the right standard or method to be used in business operations. In addition, if you determine a new target market and already have a new type of product that is more varied, then you also have to determine what methods will be used to cover the target market, get engagement, to make sales to that market.
3. Prepare the capital needed
During the expansion process, business capital will of course be needed. For example, to pay employees, rent or build new warehouses, build physical stores, buy online stores, and build their own production plants. You can just use the profits from sales as capital. However, it is possible that your business cash flow will be disrupted to undergo current business operations before expansion.
Expansion into Global Markets
For those of you who plan to expand into global markets, here are 5 tips that can be considered to maximize the success of your business in global or overseas markets. These five points are as follows:
1. The importance of checking a business’s balance sheet
Expanding your business geographically is a costly affair, because you have to rent a new office, build human resources, run a marketing campaign to spread brand awareness, and much more. You have to know how much capital is needed before plunging into foreign markets. To determine the cost of global expansion, it depends on the nature of your business and the legal, regulatory and cultural environment of the target country. During the due diligence process, you must then examine the balance sheet and cash flow statement to determine whether you are in a position to handle all costs involved in the global initiative.
2. Knowing new markets
Foreign markets can be completely different from markets in Indonesia. Even regionally, market and consumer behavior can be drastically different.