Title: Makeover My Business: How to Expand
Author: Brian O'Reilly
Reference: CNNMoney.com Fortune, Feb. 2006
Presenter: Milena Grinberg
Before expanding
your business it is important to think over several factors that may determine
whether and expansion is a good idea. First off is knowing deep down that
you truly like the job that your business is all about. If you realize
that the only reason that the only reason you started it is because you thought
it would be profitable, maybe selling it and using the cash to invest in something
you feel passionate about is a better idea. Next, if you really like what
your company does, do you know anything about how it works? If you realize
that you jumped into the market without learning first how it works, sooner or
later your competitors who are knowledgeable about ever aspect of the industry
will get the upper edge.
If you feel
you really like doing what the job entails and that you know enough about it,
then it is to get on to looking for a suitable location. Think about what
type of consumer your product or service is. For instance if you are the
Tracker Supply Company, you would want someplace near to an agricultural community
or farm land – starting a business in a city would be pointless. If,
on the other hand you were a bus company, expanding to the wide open mid west
prairie just wouldn't be feasible.
Finally, although
expanding usually means bringing in large, at least gross, profit; think about
whether there are not more productive ways to increase revenue. If you
are a department store, starting online shopping would be a whole heck of a lot
cheaper and yet may bring in even more income than simply opening another store. If
you run a machine shop you could open another factory but maybe up grading to
computer run equitment would make it so that you could make twice the number
of products and yet maintain the same staff and not need another building to
heat and pay taxes on.