Every existing business offers a specific product or service to a group of customers. The major reason of going into business is to provide solution to specific problems faced by people. These potential customers are distributed in large numbers from one region to another, spreading over the borderline, and across into other continents. Nevertheless, it’s the size of the market controlled that differentiates big businesses from other smaller ones in the same industry. So while small businesses may focus its strength in the regional market and competing favorably, the larger corporations have worked out better strategic means to compete in the global market.
In this post, let’s briefly look at six practical ways to expand the capacity of a business:
Increase Your Workforce
It’s a common thing to see
founders working alone at early stage of a startup. But as things begin to
mature, more hands will be needed to deliver and sustain the required operation
proceedings. A complete business structure is usually made up of workers
covering operational duties, marketing activities, finance control, and the area of management.
The amount of work output generated is a function of time and the size of the workforce. To carry out the business of the day, and place products into the reach of potential customers, big corporation have to maintain a large workforce budget. But now, freelancing have provided an alternative for most small business owners to get specific jobs done. These independent freelancers do not need to get into the payroll of your organization, but rather hired temporarily on short-term contracts.
Leverage the Use of Software
No doubt, we’re already in the age of super speed. Software have been running several application processes at great speed and accuracy, faster than what humans can do. This technology, having been powered by the genius of smart codes and advanced computer programming languages- to provide desired results for real life problems.
Advancement in technology over the years have created more software applications that can perform specific professional task in the business world. So, depending on the required function, accounting, book-keeping, project management, and supervisory duties can be outsourced to a software. In most cases, the use of artificial intelligence can help business owners to expand the capacity of the business, requiring only a handful number of workforce.
Opening a Second Branch
Owners of businesses who deal with physical products are likely to need an additional branch office or a new distribution channel in order to increase their market share. Getting a second branch in another regional location means more investment capital. This also means that more workers will be engaged to help accomplish the expansion goal of the business.
Opening branch number two, is a sure way of expanding the capacity of a business. It means pitching your tent, and fighting away from your home base, to boost more sales and reach more customers.
License to Other Entrepreneurs
Licensing has been a long practice in the corporate world of business. The act of licensing simply means that the owner of a legally protected(trademark, logo, copyrighted name or design) business entity have transferred the legal right of manufacturing and distribution of their product or service, to another business owner.
A great concern is that competition is getting fiercer in the marketplace, with both big companies and small businesses fighting to maintain their market share, in the face of product explosion and abundance. When you’re swimming with the sharks, the last thing you want to be is to be the sinking competitor. One of the ways to stay above the competition is to get a good deal from other entrepreneurs, and license the production of your product.
Expand into Other Countries
Big corporations and multi-national companies have huge markets and loyal customers in different parts around the globe. The notion of international trade is to produce goods in one country, and get these products into the hands of potential consumers residing in other countries around the world.
However, progress made so far in the digital world have ensured the death of distance. Digital files and products can be shared over long distance through the internet, into the possession of the consumer. Virtual marketplace on the internet have readily helped professional freelancers to set up shops to connect with paying customers, and achieve optimum customer satisfaction. Website platforms with features of language translations can enable users to view and access information in their preferred foreign language. Translated versions of downloadable products in a specific language is one simple way to expand your business into other distant territories.
Launch other New Products
Staying on course and ensuring that the business remains on the path of growth is an important management decision. The idea of launching a new product or service is for deeper market penetration and to capture more customers. Companies with more than one product in market are more likely to command higher sales volume.
In most cases, the new product could be an upgrade of the previous one, or an entirely new solution to match customer’s preference. For online platforms, it could be the addition of a new feature for users to derive more satisfaction or be able to do more things using the product.
The amount of revenue recorded at the end of the business year represents the size of the market share controlled. If the results are favorable, the task at hand is to maintain and sustain the current position. But if otherwise, then the focus is to work out plans to successfully increase their market share by selling more products. Businesses hoping to sustain growth must continue to seek ways to expand the capacity of their entire operation. Expansion can be achieved either offline or online. The major focus will be how to improve and increase the overall strength and capacity of the business, making it possible to satisfy more customers.