In the wake of the lockdown being lifted, there will be a slow realization of where you stand as a business. As you look around as the dust settles, some businesses will have collapsed and others will have just barely made it. Some businesses will be in a great position, able to expand and fill in the newly created gaps in the market. If you’re not sure whether you fit into this category, there are some things that are right in front of you that will tell you whether it’s too soon or just the right time. Seizing the moment before you’re really sure, might be your undoing. If you answer yes to 2 or more of these signs, it’s time you put the pedal to the metal.
Customers want more
Are your customers asking for a solution that you currently don’t offer? Let’s say you are a clothing company and you sell dark denim skinny jeans in one of your lines. Do customers say they would like to have the same pair of jeans in a ripped style? A stained style? Maybe they would like them in shorts cut as well. This is something that is a ‘related’ product that can be determined to be product expansion. If you’re unsure whether it’s just a minority of customers or there really is a wave of support behind such ideas, perform a social media polling experiment.
Firstly, write a question of whether or not customers would like a product expansion? Then ask which direction would they like it to go? Listen to what your customers are telling you. Read every comment and reply as much as you can to accelerate consumer interaction.
It could also be that you are being asked to make an entirely new type of product. This is something that Samsung has done. They made smartphones before they made tablets. Could you possibly expand in a similar technology or product direction?
An increase in B2B clients
As many suppliers and distributors try to garner as many clients as they can, you might be experiencing an uptake in B2B clients. Are you being emailed more often, called on the phone and being asked to lunch with company directors? Taking on more orders is a great sign you need to expand quickly, to manage the influx in industry interest. It’s time for you to take a look at internet service providers that will give you faster yet more reliable internet, that large businesses utilize. If you’re looking for outright speed in DSL internet, then CenturyLink is top of the pile. For employees that need to manage more tasks and contact more clients, internet speed is sometimes the key to increasing productivity. This brand is also the most affordable when considering the other top providers. However, regarding customer satisfaction AT&T are the best as 120 million people in 21 states, generally, speak highly of the customer service.
Fiber internet service is perhaps the more viable route if you can afford it. CenturyLink is again the fastest, at 100mbps at a starting price of $65. Customer satisfaction is trumped by Verizon as it brings fantastic speeds with a coupling of unlimited data.
Whispers of mergers
As many businesses falter and try their best to hold their head above water, there is increasing talk of many mergers and business acquisitions. One of the fastest ways to expand is by buying another business. There are many benefits to this. Firstly, you can rebrand the business and simply absorb it into your own brand. You can allow the business to continue operating but take the majority of its profits. You can also use it as a guinea pig to experiment with new products and services, without taking a hit to your reputation.
But what are the signs that you should take this route? The bottom line is, you need cold hard cash. If you are rich with liquidity and have the financial firepower to buy another business, then you are already in a great position to make an acquisition. Does the condition of the economy allow you to take this route? Are consumers confident and are they spending well? What about the political situation, are their policies in place that make it friendly for you to buy another business? There are some laws that help those making an acquisition of a business that is collapsing, as governments will want to save as many jobs as possible. And lastly, did you have a plan or hope to expand before the crisis or are you making a rather large impulse buy?
New territory distributors
Every so often, when you come into work, you have a surprise waiting for you. If you have an email from a distributor in another region, city or country, wanting you to expand into their territory, this is a chance you may want to seriously consider. Distributors are trying to restock their shelves and expand their client list. If you feel that you will get the support you need from them, you should be willing to increase product production and increase your logistical infrastructure.
But how do you go about it? In a meeting with the wholesale company, you should try to make a few things clear.
- Will you be receiving any kind of financial assistance from the wholesaler? This will be to increase production, deliver products and pay for any access laws regarding import barriers, tariffs, etc.
- Will you need to transport the goods to their location or will you be tasked with delivering the stock yourself? Distributors have great connections in the logistics industry and could offer you their own freight haulage solutions or help pay for any that you decide to use.
- Commit to a consumer appetite report in the area. Ask for such a report from the wholesaler to see if there is a viable market your products would fit into.
Expanding a business is a mixture of logistical challenges, increasing your internal capabilities like faster, more reliable internet and buying other businesses when you have a chance.
