Business expansion includes selling more of a core product or service, offering a variety of products and services, and buying other companies. Business expansion begins with developing a strategy to guide business growth.Continue Reading
A business expansion strategy sets the expansion paths a business uses as well as its goals, deadlines and means for measuring the plan's successfulness. It is a tool for decision making.
Selling more of a core product or service is essentially sales. Good sales depend on knowing the target customer, ensuring the product or service meets the customer's needs, and increasing the company's physical share of the product's market.
Offer a variety of products and services that complement the core product or service. For example, an interior design service that also operates a furniture accessories store.
Buying other businesses requires capital and a knowledge of vertical or horizontal integration. Horizontal integration is buying like-businesses. This method of expansion grows the business physically and relies on a large staff. Vertical integration is similar, but it relies on buying businesses that supply the components of the core product or service. An example is a restaurant that owns its own vegetable farm. No matter the business expansion path- increased sales, variety of products and services or acquiring businesses- a business needs an expansion strategy.Learn more about Managing a Business