May 23, 2014 | SERVCORP
Malaysia's economy grew by 4.5% in 2013. In 2014, an economic growth of 5.5% is highly expected. In this connection, the time is ripe for successful startup businesses and small to medium scale businesses to expand.
Taking the next step for business growth is the only option of every businessman. What is the “next step”? A flourishing business's natural progression is to go for expansion; however, there are businesses that went belly-up after an expansion simply because they failed to do a thorough study of how to grow their business for maximum success.
Is Your Business Ready for Expansion?
Before you consider expanding your business, there are several things that must be deliberated on. The first thing to consider is the financial status of your current business. You should carefully analyze and study your net income for a year or two and see if your sales is undeniably increasing.
Do you have the financial capacity for expansion? You will need the funds to cover a thousand-and-one-thing pertaining to business expansion. There is marketing and advertising to consider, the hiring and training of additional staff and the probability of opening a new store or relocating to a bigger site.
How is your stress level? Will you be able to manage a bigger company? Business expansion requires a lot of stressful, hard work and entails the management of more employees. If you feel inadequate in this department, consider taking additional training.
Ways to Expand Your Business
There are several possibilities to bear in mind when expanding your business in Malaysia. Which method best applies to your business depends on the type of business, available resources and funding, and time and effort that you are willing to devote in establishing your expansion.
Launch a New Product: Introducing a new product or service related to your current customer base is the most apparent means of increased revenue. You have certainly found a niche in your existing offering and it is up to you to find out what other product or service your customers need. It can never be over-stressed that a success of an enterprise largely depends on supplying the needs of customers.
Open a New Outlet: Opening a new store is not easy as it necessitates a lot of work and a large capital. It requires feasibility study, new market research, a business plan and training of new staff and employees. This option is almost the same as opening a new business. If funding is a problem, consider getting a loan from a local bank. Make sure your new location is viable for the business.
Form a Consortium: Partnering with another business similar to yours is a smart way to quickly expand. There are numerous conglomerates that are forming alliances to expand the reach and profit of their businesses. If you have a car dealership, partnering with a tire dealer is an income-generating possibility. If you are an event organizer, you can partner up with a caterer and a photographer. This way, you assimilate your alliances' customer base.
Diversify or branch-out to other possibilities: Diversifying allows you to have several sources of income that will surely increase your sales and profits. How do you diversify your service or product line? On top of the list is through selling complementary services or products to your existing line. You can also diversify into offering workshops and seminars that are related to what you are offering. For example, if your business is a bakeshop, you can always fill in seasonal slacks by offering classes in basic baking and decorating. You can even branch out as a motivational speaker or a columnist if you have the skills and talent to be one.
Hit the Global Market: There are various ways to expand your business internationally. Depending on what you are offering, you can go into exporting, licensing, franchising, and manufacturing and enter into a joint venture with an investor. How do you start? Aside from making sure that your business is financially sound, you should assess the needs of your new market, hire the services of legal and accounting personnel, patent your goods and comply with set rules and regulations. You should also study the economic, political and socio-cultural factors of your target country. Most Asian countries require a local investor.
Expand to Internet Marketing: The internet is 24/7. As one half of the world sleeps, the other half is awake. Online transactions are conducted over the internet - from booking airline tickets to school enrollment to purchase of anything and everything under the sun. With today's trend in online shopping, having a company website is no longer enough. Buying should be an option. This way, you can sell your goods to other countries.
A successful business has no way to go, but expand; but careful consideration is important before taking the plunge to business expansion. Servcorp is equipped to help you deliberate on the best way to expand your business (and how to go about it) for optimum success.