Have you ever imagined creating your business and it closes before it even completes 2 years? This is the reality of 1 in 4 companies in the country, according to Sebrae. In view of this, many have been betting on a higher organizational level, based on a business expansion plan.
Even though each company has a specific list of goals, almost all organizations want to:
- increase profits;
- be recognized as a reference;
- achieve success.
This is what most companies want. But, to get to this point, there is a lot of work and above all organization and planning guided by this business expansion plan.
After all, companies that remain stagnant tend to always be behind the competition and the results fall, as they give up the path of reinvention and innovation.
And if you don't keep up with market changes, you are left behind.
But what will be the true meaning of a company's expansion plan?
And how can it directly impact business growth?
In this article we will discuss the subject and bring some possibilities for the business plan for the expansion of the company. Check out!
What is a business expansion plan?
As a living organism, a company needs care to ensure its best performance. And in the business environment, “these precautions” are called strategies.
A company's expansion plan is a set of strategies used to plan the growth of an organization.
An expansion plan within a performance management scores clearly Which are they:
- necessary financial resources;
- profit projection.
The expansion plan works as a GPS for directors, managers and leaders.
Usually, a business plan for expanding the company is adopted by businesses that have reached their maximum growth point and want to take the next step.
And on this path is the goal of increasing profits and reaffirming itself in the market as an updated, relevant and remembered institution by its customers.
Read too: How to set goals in the company and get more results
Why have an expansion plan for your company?
A business expansion plan helps the company to develop in a way that:
- minimizing risks;
- diversifying sources of earnings.
This topic has even been widely debated in our article on how to create an efficient financial project model. It serves as beacon for:
- create campaigns;
- reach new customers;
- develop new services;
- meet customer needs;
- in addition to projecting risks for acquisitions and mergers.
Having a business expansion plan, always up to date and in line with the market reality, ensures that organizations stay tuned to what happens in their niche.
The consequence of this is that they become more competitive in the market.
How to put together a business plan for expanding the company?
1. Do a market analysis
Before starting the plan itself, it is necessary to:
- analyze market conditions;
- assess whether the time is right;
- calculate how much investment will be required;
- how much it will affect the company's finances.
Without this panorama, instead of expansion, efforts will be made to control crises.
2. Choose an expansion plan model
After this study, it will be necessary to decide the model of the expansion plan.
We can highlight the organic growth which happens from the diversification of the product mix and the expansion of sales channels, for example.
Or by Fusion and acquisition which includes the increase in the number of franchises and / or the purchase of new businesses in the same or another segment.
Then, it will be necessary to list what their objectives are with the expansion, where you want to go with the changes.
3. Expansion plan strategies and investments
After this step of analysis, the elaboration of strategies begins and it is necessary to establish goals for the company, as well as well-defined deadlines in a schedule.
At this stage, the SMART technique should be used, whose acronym in London means:
If you are unfamiliar with this technique, we recommend reading this article. If you prefer, watch the video below.
The investments necessary for the implementation of the business plan for the expansion of the company must also be considered in the business expansion plan to measure expenses and even suggest an emergency reserve.
Predict possible unforeseen events and indicate solutions they must be part of the debate that anticipates the company's growth start. After all, the boards will not approve anything that puts the company's health at risk.
For this reason, the business expansion plan must be assertive and aligned with the demands, objectives and business reality. Otherwise, the chances of error increase.
4. Use Business Intelligence in the expansion plan
Generating relevant information is the most noble function of business intelligence or BI, as is also known the practice of produce metrics from the use of software and other digital mechanisms.
In addition to streamlining many processes, BI is capable of providing data to be used by companies' strategic sectors. Thus contributing to the business expansion plan to be highly effective.
Marketing, logistics, sales, all sectors of the company can benefit from the metrics provided by BI if its employees are able to transform data into practical actions management.
What are the possibilities for expansion?
Now that you know what a business expansion plan is and how to set it up, let's look at the main possibilities that can help your brand grow in the market and differentiate itself from the competition.
Check below what they are.
Bet on a product mix to reach a new audience
Expanding product options or product mix is an essential part of a company's expansion plan.
This is because in addition to providing a greater market amplitude, it is possible to reach a greater number of new customers.
If you only invest in one product, it is normal for your audience to be smaller and the chances of growing are more limited.
Now, when the range of services is greater, the possibility of attracting diverse audiences is very large.
Apple, for example, offers smartphones, PCs, Ipads and even smartwatches. But it goes further by offering accessories such as headphones, portable chargers, mice, keyboards, which expand the line of its flagships.
Therefore, define your flagship, but from there bet on this mix as:
Open new company units
Opening new units of a company has the characteristic of expanding issues such as a greater offer of products and services, in addition to brand expansion.
So, it is possible to reach customers from certain locations and makes the company better known and with a higher profitability than focusing on just one location.
We would even say that the new units are a consequence of companies that are on the verge of success. Since the more it grows and expands, the greater the chances of getting new customers every day.
Read more at: How do I increase my company's revenue?
Adopt new sales channels
Generating revenue on a constant basis is the desire of all companies that see possibilities for expansion. But in this case everything depends on a effectiveness of sales channels, which should also be part of a business expansion plan.
When we talk about this, we are referring mainly to a follow-up for what is new in the market. But not only that, it is necessary that these channels are part of the profile and desire of its customers.
If your client prefers physical stores, then bet on this area to attract him, now if he is from digital generation, betting on a good website and an e-commerce with all the options of the physical store can be a stimulus for him to buy your product.
This does not mean that you cannot bet on the two forms, traditional and digital, because this way you expand the possibilities and can reach different profiles.
Acquire other companies
The expansion plan, while requiring down-to-earth and responsible corporate financial planning, allows organizations to dream big. With that, the possibility of expansion to the acquire new companies, often from the same branch.
We can remember some brands that used these resources to expand, such as Disney that bought FOX to dominate the television and film market, becoming the largest entertainment company in the world.
Or even the Fiat that allied with Peugeot, in a merger that left the company as the 4th largest automaker in the world.
In other words, acquiring companies is a necessary risk for those who want to expand their businesses and dominate the market.
How to put the business expansion plan into practice?
As you can see, the business expansion plan is a strategy used by companies that understand the importance of being constantly updated.
Since monitoring the market and being aware that the increase in your profit depends directly on planned actions offers the least risk to the business.
Mobilize company employees, as well as motivating its leaders and managers, must be part of any company's expansion plan.
Teams are the driving force at all stages of the process and the skills of groups and individuals are essential to overcome obstacles and create solutions to problems.
Therefore, having professionals engaged and involved with the final goal makes all the difference.
Thus, there will be little result in designing huge advertising campaigns and spending on investments if members of the organization itself are not involved and feel part of the company's development and growth.
Investing in training and offering attractive working conditions are reflected in the quality of the final product, in the services provided to customers and in the organizational climate.
For this, it is important that its employees are concentrated in the work environment, with high productivity, motivated and in a healthy team work climate.
However, we all know that professionals are not always with their head on the goals of your company. Much of this is because financial problems are very common and create great financial stress.
Believe me, your company can act to circumvent these problems without having to increase expenses such as raising wages. Before you think otherwise, don't even think about ignoring your employees' financial well-being.
Continuing, with the adoption of a remuneration system called salary on demand, you can contribute to the resolution of many problems of your employees. In return, you have motivated, happy, grateful professionals with high levels of productivity.
To learn more about this corporate benefit model, watch the video below and find out how it works and all the advantages of incorporating it into your company.
HR Consultant UKy can be one of the most valued benefits for those who work at your company. Talk to an expert and find out more!
Did you like our article and want to know more details about your business expansion tools? Then read our article on the power of Business Intelligence.