How Do You Know When it’s Time to Expand Your Business?
When do you know that you are ready for the expansion of your business worldwide? In case you have recently experienced quick business growth such as doubling sales weekly over some time for example and you have not only survived but have grown as a business then you can consider yourself to be ready to use the same model used for this success for continuous growth into global expansion.
Here are the signs that indicate that your business is ready for expansion.
1. Clients are beating down your door on the internet
You are receiving 50 emails every day for instance and all of a sudden you find that more than 50% of these requests are from international customers. Thanks to the Internet, it is easier now to reach prospective global customers. It is a clear indication that your product or services are creating interest and are possibly in demand internationally. You can find out by responding to these requests and learning what happens.
Keep in mind that a good plan for international business that could be as small as writing on the back of a paper napkin could help you map your international goals and targets. It can keep you focused on the things you are trying to achieve internationally.
2. You have more production capacity than work available
Take a close look at the process on the factory floors. If you find workers hanging out just chatting or telling jokes and there is little movement in the production line, it is a sure sign that you are not utilizing the full capability of the manufacturing facility. You have larger production capabilities however there isn’t enough work available to keep these production lines occupied. You can get the assembly lines moving and keep the workers busy by looking for work overseas to keep your manufacturing facility occupied with a full production capacity.
When you are working on a trade show keep your business card sorted. Keep in mind to take notes at the show and make notes on the back of every card. Are you finding out a lot of international interest? If you are at a trade show and the international visitors to your tent are showing more interest than the local prospects it is a clear indication that it is time to go for it. Follow up on all the international leads as quickly as possible when there is curiosity and check out where it takes you.
4. You are getting saturated in the local market
If you observe that your domestic sales are drying up or getting stagnated and there is just one way to grow and that is international–think of exporting the products. But, keep in mind that the ideal time for tapping the international market is when you are riding high on the local side of the business. Do not spend time waiting till the international expansion becomes a desperate act, for instance when the domestic sales are plunging. It should be a proactive measure to pursue exciting opportunities in newer international markets.
5. You have to stop dependence on the local market
Your business could be doing well at the moment but the future of the business doesn’t look too promising as many things could go wrong. You can protect your business against these risks of decline in local sales by expanding internationally. Use the web for licensing and looking for franchisees for your products and services. It is a smart way of hedging against economic headwinds, natural slowdowns, and seasonal issues. For developing the business in England you can get the help of a PEO in the UK.
One of these needs could be a prospective customer understanding the value of your products and asking you to make something special. This new product could be close to what you are making at the moment but can be utilized differently for his market. What are the places where your product and services can be used?
Consider the example of baking soda for instance. There is no need to use the product just for cleaning the fridge. Some baking soda products can also be used for baking great cookies. Take into account the opinions of existing and prospective clients. It doesn’t matter where they are situated. Think beyond the normal applications of the products and the cultural constraints on the product. You will be amazed at the number of international opportunities available for this slight improvisation.
You know it’s time to expand your business
When you see these six signs, you know your business is ready to expand. Look for a sudden rise in customers, excess production capacity, international interest, saturated local market, cannot rely on the local market, you’re developing new applications. These are all signs that you are ready to expand internationally and grow your business.