8/7/2019 How to Plan and Execute Business Expansion

1/2

PRODEL International

1

10 VITAL CONSIDERATIONS FOR BUSINESS EXPANSION STRATEGY

1. Choose your method of business expansion. Decide if you want to:

a. offer additional related products and services,

b. purchase another business,

c. increase your geographic sales coverageof Existing & New Products &Services

d. Increase the ethnic, religious and diversity of client base

e. Increase online sales for Existing & New Products & Services

f. target new clients for your Existing products.

2. Evaluate your Skill-set to determine if you can handle the increased workloador if hiring more people is necessary.

3. Review your company's Business Processes. Ensure that you have propersystems and equipment in place to handle the increase in business that will resultfrom the expansion.

4. Assess the financial stability of your existing company . Create a detailedfinancial assessment of the start-up costs for the expansion. If possible, financethe business expansion with the current cash flow or identify a way to raisecapital for the expansion, such as a bank loan or venture capitalist.

5. Prepare a marketing plan for the expansion. The plan should include the

possible methods of advertising the new products, services or business throughprint, radio, online and social media outlets. Consider if marketing the expansionwill affect the initial business.

6. W rite a business plan for the expansion. The business plan should include asummary of the company, personnel and financial evaluations. The plan shouldalso include the preliminary marketing plan for the expansion. The business plancan be informal if it is for internal use only. A formal business plan is onlynecessary if you approach a bank or venture capitalist for a loan. The businessplan will be the road map for the expansion.

7. K

eep up-to-date on trends in your market. You need to stay one step ahead ofyour competition and take risks. You don't want to invest time and resources inwriting a business plan for expansion activities that are way off target for yourmarket.

8. Brainstorm expansion opportunities. Tap into your friends and familycreativity. Encourage them to throw out even the craziest ideas. Prepare adocument collecting these ideas, distribute them to a Business Mentor and keepthe dialogue going until you've honed them into workable g oals.

8/7/2019 How to Plan and Execute Business Expansion

2/2

PRODEL International

2

9 . Set financial goals for ideas like new products, services or markets. Decide onan annual amount you want to make and then break that down quarterly.

10. Research how you can get financial backing for your expansion ideas . Knowwhether you're targeting venture capitalists, personal savings, loan officers orjust depending on profits and investments to carry you through. Tailor your

business plan with this knowledge.