Small businesses play a large role in the world’s vibrant economies, as they employ many people and drive innovation and competitiveness. According to the US Small Business Administration (SBA), small businesses constitute 44% of the country’s economic activity. However, every small business owner’s primary goal is to have a company that expands and eventually becomes large and profitable. So which smart strategies can help turn your small business into a large one? Here are four points to consider:
1. Extend your market reach
Making your products or services available to new customers is a great way to expand your small business into a large one. New markets represent new customers, who also represent fresh opportunities for increased earnings. You should open stores in new areas to introduce your business to new customers. Experts also recommend targeting new groups in your locality who could use your products and services, aside from your regular customers. Finding and promoting new uses for your product also encourages existing customers to purchase more from you. Therefore, it would be advantageous if you extended your market reach to increase sales and transform your business into a more stable model. Over time, this stability will only lead to increased earnings that will transform your business into a large one.
2. Introduce new products and services
Many business experts agree that the business world is in constant flux, and as such new products and services are crucial to the survival of companies. Consider introducing new products and services that attract new customers and encourage your existing ones to buy more. Accomplishing this can be quite tricky, but with research and flawless execution, you could be on your way to bigger things. First of all, you must identify a pressing need through customer interaction, employee brainstorming, and personal research. Then, you must develop and test a product concept that meets this urgent need. Developing a good prototype is essential here, so reach out to experts to find out how it works and how best you can bring your ideas to life to permeate new markets.
3. Consider franchising
Research reveals that 80% of McDonald’s locations are franchises. Franchising is a useful tool that you can also leverage to transform your small business into a big company. As your small business begins to experience success, consider licensing your branding, business model, and processes to others who will market your products under your brand name. Franchising has many benefits that should make it a vital consideration in your business expansion plans. Firstly, it can substitute capital acquisition as a less risky and more cost-effective way of business expansion. Franchising also gives you more motivated unit managers because your franchisees are business owners themselves with a vested interest in your business’ success. It facilitates faster growth because you team up with already successful companies, which catapults you to a market leadership position within your industry ahead of your competitors. You should see franchising as a way to increase your business’ profitability, penetrate new markets, and transform your small business into a large company.