Once you successfully established your business and are starting to feel cramped within your current setup, it might be the right time to grow. There are many ways to expand your business, from opening new locations, to making small adjustments to your current marketing strategies and more. However, before committing to any growth strategies, you need to ensure that your business is ready to take on the responsibility. 

In this piece, we explore eight strategies once you're ready to take your business to the next level. 

1. Research new niches in your market. 

Regardless of whether you've already done market research, we suggest taking another stab to refresh the angle you're currently taking. Active market research can help you unearth gaps in the market which your competitors are not filling. This kind of research can give you a better idea of how to serve your current customers better, who ultimately might purchase more of your products and services in return.

2. Find new uses for your product.

If you perhaps sell a product which can be used in more than one way, ensure that your customers are aware of this fact. You could consider conducting focus groups or surveys to determine whether customers are already using your products for something else if it's not apparent. Following this, you could invest in a new marketing campaign to highlight any new uses of the product and thus expand your customer base. 

3. Open a new location. 

Successfully expanding to a new location can help you up your production and serve new clients. However, this plan does come with significant costs, such as hiring new staff, renting or purchasing real estate, buying new equipment and more. We suggest running some new financial projections first, before committing to such a substantial investment. 

4. Investing in your customer service efforts.

Another surefire in ensuring that customers keep coming back is to build upon your reputation for customer service efforts. We'd suggest investing in a dedicated team and setting up new channels for your clients to get in touch with you, for instance, setting up a live chat system on your website, whereby you can respond to queries, complaints and compliments. Lastly, it's vital to consider investing in the training of any employees who deal with customers, as providing a great customer experience can lead to a loyal customer base. 

5. The power of social media. 

If you haven't already done so (you should have at this point), we strongly suggest considering developing a social media strategy to reach more customers and promote your content. You could opt for both paid and non-paid content, working with influencers in your niche and the types of content you'd utilise to promote. 

Lastly, it would help if you also considered which platforms are best suited for reaching your target audience. If you're selling visually appealing products, for example, Instagram or Pinterest might be your best bet. 

6. Collaborating with other businesses. 

Business owners who innovate through collaboration are far more likely to report increases in productivity, as well as develop solutions which are new to the world. There are four essential factors for successful collaboration between businesses which you should consider: 

• The ability to recognise and apply external knowledge.

• Having a shared purpose which people believe in. 

• Mutual trust. 

• Strong leadership qualities.

  
  

If you're able to identify a new opportunity, for instance, efficiency benefits from the combination of supply chains, and can engage with another business with similar needs which align with the four factors mentioned above, then you might be on track for collaborative business growth. 

Lastly, you could also opt to collaborate internally, the more your team members work across departments, the more chances there will be for finding new ideas. 

7. Waiting for the right time. 

At the end of the day, your problem might boil down your business not effectively maximising its profit potential, and thus, an expansion might be the solution. In any case, an increase in profitability is a form of business growth. No matter the situation, it's vital to know when the right time is to expand your business. 

However, should you find you have no specific problems which can be solved through growth, it might be wise to hold your horses. As a business owner, you need to ensure that your business can afford the costs or is set up to pay them off if you need to obtain financing. 

8. Don't be afraid of financing. 

It's often the case that successful expansion of your business warrants upfront investments. However, if you don't have the cash flow on hand, you might need to consider taking out a loan. In fact, growing a business is one of the top reasons why companies borrow.

Here are some options for financing: 

• Business loans. These kinds of loans range in variety, including how much can be borrowed and repayment periods. Regardless of the type of business you own, you'll be sure to find a business loan which fits. You could opt for borrowing from businesses such as LulaLend which offers loans to SMEs in South Africa. 

  
  

• Business credit cards. A business credit card offers many advantages if you're spending on smaller investments, such as rewards systems provided by Discovery and fixed interest rates, depending on the bank you opt for. 

  
  

Factoring in costs before expansion:

No wise business owner can ignore the factor of cost. It's wise to expect significant costs and reduced profits while your business adjusts and grows. You need to consider the following costs:

• Additional training, hiring expenses and other human resource costs

• Extra maintenance costs

• Increased overhead and logistics costs

• The potential loss of customers

• Loss of revenue as you transition

• Increased marketing expenses

• Financing charges like interest and fees

  
  

You will need to subtract the above expenses from your projected profits to ensure a return on investment which is worth it. 

Should you expand? 

Be sure to take the time to examine your business's cash flow carefully and accurately to prepare for any potential issues. A robust expansion plan needs to include a clear timeframe and budget forecast, which is in line with predicted industry movements over the next few years. 

Consider the following five questions when preparing:

• Will growth improve the quality of my offering? If you suddenly have more customers than you can handle, hiring a bigger team can increase quality. But if you scale production without obtaining staff, it could suffer.

  
  

• Could growth increase my presence in the market? If your products are highly valued and well-received, that may indicate you're able to increase your market presence.

  
  

• How will growing impact my efficiency? Often investing in new equipment or training could make your business more efficient. But adding more steps to the process could slow you down.

  
  

• Is my industry changing? If your competitors are growing in a way that threatens your current operations, an expansion might be a means of survival. It can also help you get a leg up on a new market.

  
  

• Have I reached capacity? Businesses that are grappling to keep up with demand might need to grow to stay afloat. It also can help you secure more substantial, more profitable contracts.

  
  

Conclusion:

Effective expansion of a business should ideally provide a solution to any problems faced by a company. If the problem you're facing is running out of office space, or if you need new staff, an expansion might be the solution. Low profits could also be the problem, and business growth is one way of addressing that. Whatever the case may be, ensure that you've carefully considered the eight tips listed above before jumping into a growth strategy for your business.

To assess whether your business is eligible for a small business loan, please visit the LulaLend business page to access their contact and service information.