Expansion Process of a Business (Essay Sample)

Expansion Process of a Business
Nduati Cathhreen
Nairobi University
Author Note
This article is for sample test
Abstract
Business firms expand their operations in various regions or globally by using incremental in character method. The common routes that firms follow to navigate this process include: acquisition growth, offering franchise ownership and public stock, opening new market segments, patent your products, and licensing of the business. However, Erick Koshner asserts that to illuminate these issues, business expansion process must start with assessing strength and weaknesses. Although this article provides various ways to expand your business, entrepreneurs may decide to execute as a whole or partly, depending with the resources available.
Expansion Process of Business
Managing the growth process of a business has become dicey because it can make your flourished business to be in the demise or it can take your business to the next level. Ann & Nicola (2011), states that to expand business internationally, firms have to duplicate parts of their value chain in different countries. With advanced technology, firms should use online promotion to leverage their businesses in the competitive market. Physical stores like brick-and-mortar store mainly hinder the expansion process as it is static to a particular segment market (Billy, 2013). Establish a website and align you store with it to thrive your business as it will open new avenues of revenue to the firm like subscription fee revenue, advertisement fee revenue from other firms promoting their services, and sales revenue. This will help the firm to interact with overseas clients and be able to run the business 24/7.
According to Nelton in Nation’s Business (1998), expanding business is not about grappling with the current problems on large scale but instead apprehending and adjusting to new set of changes. Firms need additional financing to executive this process successfully and this will be determined when updating the firm’s market strategies annually. Firms should also maximize the available capacity to minimize cost of expanding the business.
Entrepreneurs to patent their products and establish new segment market to thrive their business. By having product trademark and brand patent, you are protecting your intellectual products from counterfeits and assuring your customers of quality products. By extending your market base, i.e. by opening new markets in different geographical areas, you increase sales revenue as there will be more customers due to accessibility of the stores to them. Entrepreneurs to have in mind the logistics needs that firms should augment. Open global outlets with the help of intermediaries to increase your market base and diversify you operations i.e. selling complementary products. The company must identify what need to be expanded or diversified to avoid inefficiencies.
Franchising can also help entrepreneurs to spur their businesses globally. A part from bringing more revenue to the company, it also creates employment to people of that region therefore creating a good relationship with them. Note, however, to comply with the rules and regulation governing businesses in that federal. Entrepreneurs should not over-expand their business as this may be very expensive to the firm. They should rely on the current financial capacity of the firm where they expand based on the demand of a five-year projection.
In conclusion, firms must be willing to recruit new personnel to meet the demand created by new value chains, new marketing campaigns, and new administrative requirements. This will help in maintaining adequate staffing level to help serve its customers to satisfaction, therefore, creati...