Strategizing for Business Growth: Approaches on Expansion

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Expansion is a common and often inevitable next step for thriving businesses. Because this move is primarily uncharted waters for new and growing companies, the risks inherent to it are usually great. However, when done the right way and with expert management, these risks could be turned into massive profits, sometimes multiplying the initial capital manifold. Below are a number of strategies for succeeding in business expansions:

1. Opening stores in multiple locations

Before considering opening stores in other locations, business owners must first ensure that growth and profit are consistent throughout the years. They must also look at the economic and consumer trends to determine if their brand or product has staying power.

2. Engaging in a franchise system

Expansion often means greater opportunities for stronger cash flow, which in turn attracts investors or franchise buyers. Franchising allows new business partners to be more involved in the operations but remain guided by the rules or business strategies of their mother company.

3. Product licensing 

This type of business expansion involves minimal risk. It is a low-cost tool for growth and has proven effective overall. Business owners can receive a continuous stream of profit from royalties and upfront cash given for the use of their branded products.

4. Government partnership

Having the government as a customer will surely yield great revenue because they are among the largest buyers of goods and services. There is a lot of work involved, but it contributes to the stability of the company.

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Fred B. Barbara is a skilled entrepreneur and investor who began his foray into business at the age of 18. He grew a small trucking company into a multimillion dollar enterprise and has gone on to triple that amount in the present through his investment expertise. Know more about him here.