There comes a stage in your business when you have to take a big leap. Growth happens when you decide its time! As an entrepreneur, make sure you have thought about following before going forward with expansion plans:
Selling new products to existing customers is one way to grow. Apple has been successfully executing this strategy for the last decade. Their customers love Apple and are ready to lap up anything gadget. This ensures customer loyalty and helps build upon that base to expand to new customers. This happened with the iPod, iPhone, iPad and now the iPad Mini. Make sure you try to evaluate what your existing customers will need and build it.
One way to expand your business will be to sell existing products in newer markets. Coca Cola is a perfect executioner of this strategy. Every year, they will expand into new and emerging markets with what they have been selling for hundred years — bottled cold drinks! This ensures their globally recognised brand makes deeper inroads into newer territories. Even if you are a startup, try to sell your existing products and services in newer geographies and customer segments. Do not put all your eggs in one basket.
Once you have exhausted the product-customer permutations and combinations, it is time to think of unrelated diversifications. This is what Reliance did last decade by entering the telecom market. After getting into all areas of petroleum and related products, it was time to think of the next big thing to do and Dhirubhai Ambani chose this new and emerging sector for Reliance’s growth. However, make sure the team with you is aligned to this new way of doing business as it requires a completely new mindset and way of dealing with things.
As entrepreneurs, growth is not a choice but a compulsion, so go ahead and do it.
Article published in : http://newindianexpress.com/education/edex/article1342329.ece