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In most cases, business expansion occurs due to an increase in demand, an increase in efficiencies, new production lines, more diverse or international markets and the need to bring certain functions, such as logistics or manufacturing, in-house.
Planning for expansion is a strategic exercise which involves identifying the exact need for expansion. After this, you can focus on the need and develop more defined estimates of the time and capital required to implement expansion efforts.
Identify exactly what needs to be expanded. Expanding for the sake of expanding might lead to increased inefficiencies.
Determine exactly what parts of the business you wish to expand. Producing more product does not necessarily translate into a broad expansion across the board.
This approach does not take economies of scale into consideration. Determine the effect of the expansion on personnel. Consider hiring part-time workers until the need for full-time work is certain. Also, remember that payroll for increased personnel should come from the increase in revenue, not outside funding.
Develop training programs for employees. Communicate expansion efforts and goals with employees through training sessions. Train a few of your best employees and then have them train others.
If purchasing new equipment, have the seller provide training to staff. Consider expanding through the Internet. Brick and mortar traditional building space costs a great deal more than the cost of maintaining a website.
Purchase or lease additional space only if necessary. This poses a significant investment and should be analyzed carefully. Until then, consider efforts to maximize the physical space of your current location. Determine new routes and plans for logistics.
With additional customers comes the need to service a broader customer base.
Identify those logistical needs that need to be augmented. References 2 Reference for business: Photo Credits business colleagues preparing for business meeting image by Vladimir Melnik from Fotolia.Writing a Business Plan Georgia State SBDC 2 Why Write a Business Plan?
A Business Plan helps you evaluate the feasibility of a new business idea in an objective, critical, and unemotional way. Nov 12, · How to Write a Business Plan.
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Jul 05, · A well-drafted growth plan will identify potential growth opportunities and the amount of money you will need to fund the expansion. Your plan should have multiple parts, including a marketing strategy and different financial documents%(20).
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Nov 12, · How to Write a Business Plan. In this Article: Article Summary Doing Your Homework Structuring Your Business Writing the Business Plan Sample Business Plans Community Q&A Creating a business plan will help you achieve your entrepreneurial goals.
A clear and compelling business plan provides you with a guide for building a successful enterprise focused on achieving .