Mobe Affiliate Program :Business Expansion
Mobe Affiliate Program :This era is all about disruption and startups are a huge part of the disrupting industry. For a lot of companies, expanding might be the last thing on their minds. Like investing in stocks, expansion is a risky undertaking that involves a mosh pit of risks and challenges. Imagine taking all of the money you’ve earned throughout your life and placing it in an investment option that doesn’t guarantee a return. Much like gambling, you either win or lose, and there’s no consolation prize for joining.
It’s not that businesses don’t want to grow, but most might just be too caught up with the daily market scuffle to recognize success. On the other hand, others who are just getting by fear the unfamiliar. Most of these entrepreneurs are content with how things are going (at least for now) so they refuse to mess up the status quo.
Well, who can blame them? The struggle is all too real. Small Business Trends cited that a staggering 95% of businesses fail within the first five years and Inc. reported that around 96% of all businesses don’t get past their 10-year anniversaries. With statistics showing bleak business success rates, it is mind-boggling that anyone still decides to tread the more difficult road.
Business Owners Hesitate to Expand for a Number of Reasons
Here are a few of them:
1. Personal Risks
What a lot of business owners value most is their work-life balance. Compared to their peers in large corporations, they have more control of their hours and priorities. When expanding, this balance will undoubtedly be rattled in some ways. Health, family time and personal finances will once again be compromised. Business owners know this since they have experienced this before. Starting the business might have caused them many sleepless nights and stress. It’s natural to avoid having to go through that again.
2. Business Risks
There is also the matter of finances. This is probably the top reason why startups feel they cannot expand. A cash flow deficit could do irreparable damage to your reputation and operations. It could also bring a number of pressures and disruptions to any working system, and for small businesses, that may be a lot to take. New payables may create unforeseen financial strain that you may not be prepared for.
Being busy with the ongoing expansion, you might unknowingly neglect your existing customers that could result to them feeling underserved. Even with financial backing, businesses will still undergo changes—a lot of them, and employees might feel uncomfortable with these changes. Drastic changes could make employees uncomfortable and prompt them to quit. For business owners, this is an additional risk that they may want to avoid.
3. Competitive Risks
Expansion is a daring step that involves taking on new markets. Everything is fresh and exciting, but there is a caveat. It also means that you’ll be immersing yourself in an environment that could be unfamiliar. Learning a new market comes with its own set of challenges. Naturally, you’ll meet competitors who have established themselves in that market and have substantially more experience. So how can a small fish like you compete with the big ones?
The Cost of Delaying
It won’t be easy, but success in expansion is achievable. Apple would not be the gargantuan technology company it is today if it did not take risks and expand from Steve Job’s garage. While comfort zones are, well, comfortable, you won’t achieve much by staying there. The most successful startups are hungry for success and they didn’t let hurdles cripple their chances at establishing their brand.
Choosing to stay within your small niche for too long has its dangers. Here are a few that could help you change your mind if you’re still hesitating to expand.
You Might Lose Valuable Employees
Achievers are hungry for development. If you keep asking your employees to do the same things over and over again, they’ll get bored and feel unmotivated. Even the most loyal employees desire different avenues for growth. Without that, they may feel the need to leave.
You’re Limiting Your Business Growth and Revenues
By expanding, you showcase your business to a wider audience, which increases your pool of potential customers. We know what that means—a chance to dramatically improve sales and, ultimately, increase business profitability. Delaying expansion could delay revenue growth, limit your reach, and potentially sabotage your chance at even greater success.
You’re Giving Your Competitors the Advantage
A good startup business has long-term goals, and these goals should be carried out on specific timelines. Timing is crucial to a business. Missed opportunities give your competition the chance to take advantage of it. Customers want innovative products and services, especially the Millennials, who are very tough to break. If you wait too long to give them what they need, they might think that you’re no longer interested in keeping them happy. Today’s consumers will shift to the next provider if they see that they provide more value. Believe it or not, business expansions excite consumers. If you keep disappointing them with the same products and services, you could be pushing them towards your competitors.
Mobe Affiliate Program Tips: It’s every business owner’s dream to be successful in his journey towards financial freedom. While it can pose problems for businesses that are not ready to take on the challenges of growth, entrepreneurs who choose not to diversify can also face the wrath of its employees, its stakeholders and most importantly, its consumers.
Expansion has its share of risks, and making too many changes too fast, too soon, can backfire. But done right, expansion makes good business sense. Growth allows for better brand recognition, creates “economies of scale,” and helps businesses offer a wider range of products to a larger geographical market. Not only does it build business value for its employees and its customers, but it can also elevate the company to the forefront of consumers’ minds. If you are too slow to address your market’s needs, you might miss out on once-in-a-lifetime opportunities in today’s marketplace.
To realize the rewards that a bigger business brings, you need to revisit your business plan and make some modifications. Gather your reinforcements—your marketing consultant, your lawyers, your accountants, your stakeholders, and your employees—and discuss your plans with them. Before anything else, make sure you’ve done your feasibility study—with results suggesting that you have a future when you scale your business. Customer feedback is crucial and it will help you make a more informed decision.
Expansion entails careful consideration, and sometimes, a leap of faith. A solid plan, a good vision, and constant communication between management and its employees are keys to successfully expanding. Once you decide that your business is ready to move forward, proceed with caution and make calculated decisions. This will help minimize risks and increase your business’ chance for success.