Just because the economy isn’t firing on all cylinders doesn’t mean it isn’t the perfect time to expand a business – domestically or abroad.
In the wake of a challenging economic climate, many small business owners are bucking the trend of hunkering down and instead are embarking on ambitious growth plans.
As the backbone of the economy, small businesses continue to be a source of dynamism, growth and innovations. Small to medium-sized businesses constitute 90 percent of total enterprises in most economies. In the US alone, there are more than 27.5 million small businesses and employ more than half of all US workers.
However, before you move forward, make sure your company has a plan. Below are five areas where companies tend to make mistakes and tips to avoid them. Having a firm grip on these issues before you get going will save you money, help you avoid pitfalls and could put you on the fast track for growth.
Financing your business
Don’t start with a mountain of debt.
Cash flow is the top priority for any business’ success as it determines daily operations, expansion plans and purchasing power. The second largest expense facing a business is property costs. By relinquishing long-term lease commitments and taking a more flexible approach to their workspace, businesses can scale up or down in a new market with minimal risk and limited upfront capital.
Often, companies who want to test a market, feel the need to lock into a lengthy agreement. Financial problems quickly emerge when they need to exit or expand in the market and they can’t because they are strapped with a fixed lease.
A tight credit market has prompted small businesses to contain costs by adopting a flexible work approach that allows businesses to tap into workspaces as needed. This freedom allows businesses to scale their workspace needs and allows business to reinvest their capital back into their businesses.
Technology
Companies don’t fully harness the power of the internet. Technology is a key driver for business growth and the arrival of e-commerce trading sites and social networks aimed at businesses offer enhanced sales and marketing opportunities.
When expanding your business, your services need to be obvious to new customers no matter where they are based.
Not surprising, most small business tend to have limited resources for marketing. Optimising your SEO ranking is an easy way to increasing online visibility. One way to achieving this is to purchase an URL that has your keyword included.
Some small businesses owners can’t yet measure a Return on Investment (RoI) for social media. While it does take time to hone your online voice, social media gives you greater reach with customers and is an affordable tool. A recent study revealed 43 percent of US firms use social media to gain customers.
This figure suggests there is still a long way to go before organisations fully comprehend the ultimate role of social media.
Today’s businesses must embrace the cloud. Utilising internet-based applications to run your business enables you to focus on growth rather than your IT infrastructure Data can be accessed and shared from anywhere when staff is working remotely. Professionals are no longer tethered to their desks. Technology allows them to be productive any where in the world.
International opportunities
Expanding your business beyond your current borders to a new state or new country is one way to grow your business. New research presents evidence that companies operating internationally are yielding better financial results than their domestic counterparts. Foreign expansion, even in this economic environment is proving to be good for business.
As a result, global mobility is accelerating at a rapid pace and most companies lack the internal resources to properly navigate in a foreign market. One way to tackle this challenge is to establish a presence through a third party workspace provider. These types of partners will alleviate the legal and cultural hurdles a business can encounter when expanding globally.
Economic advances in China, India and other emerging markets are overshadowing the pace and scale of other developed markets. The growing middle-class consumer from developing nations will have a profound change on the supply/demand chain. Doing your homework will help you identify the right market and will help guide you to where in the world your services and products would be in demand.
The uncertain global economy has leveled the playing field for all businesses as they are all operating amid volatility. Small businesses ready to take on the world stage should view this time as an opportunity rather than an obstacle. So follow the surge and go where there are opportunities for your company.
Minimise risk
Mapping out an entrance and exit plan for a new market that will limit a business’ financial exposure is critical. In order to mitigate risks at every step, businesses can conduct a comprehensive audit of the market and implement a flexible approach, which will help to reduce risk.
The focus for corporate activity this year will hinge upon caution, flexibility and ‘what ifs.’ Geopolitical disruptions, natural disasters and a worsening debt crisis in Europe influenced last year’s economic landscape as well as the opportunities business pursued. There is a new reality when it comes to conducting business in today’s global economy and volatility is expected to be here for the foreseeable future.
A business may not be able to predict the next occurrence but they can have a flexible approach that will enable them to effectively navigate through the uncertainty and limit their risk exposure.
Cross cultural IQ
Learning how to market and sell your products and/or services is essential for success. To be successful, it would help to have a local person supporting your business. Ultimately, local intelligence enables a business to develop a strategy that will resonate to its target audience.
Cultural considerations must be taken seriously. Most likely, how the product is marketed will need to adapt to the international marketplace. Having a local presence that can help sort out these concerns and monitor new opportunities is key. An in-market address also helps boost credibility. Consider virtual options as a cost-effective way of entering a market.
Businesses can secure a corporate address and will have a local telephone number answered in the native language. These services can be started immediately, providing your business with a global presence.
Story sourced from Regus/Tale Spin Media – South Africa
