Establishing a company is only the first step for most business owners. They want to expand.
There are several ways to do this and the appropriate choice will depend on the business type and its unique circumstances. However, before taking any permanent steps, it is important that business owners conduct due diligence. The first part of this is to gather as much information as possible.
Here are three popular strategies for business expansion.
1. Strategic partnerships
Some businesses are competitors, while others have little relevance to one another. Nonetheless, it can be beneficial for businesses to form strategic partnerships or joint ventures. This could mean marketing together, collaborating on different projects or sharing talent. Strategic partnerships can be one of the first steps toward expansion, but it is important to make sure that you are legally protected before forming a strategic partnership.
2. Franchises
Franchises are another possible route of expansion. There are several ways that you can do this. You can either join another brand and utilize their marketing, expertise and brand recognition. Or, you can franchise your business. This means allowing other business owners to use your brand name while conforming to your core ethos. Franchising is one of the most popular methods of business expansion.
3. Mergers
Another option you have is to merge with another company. This may involve a larger company making an offer to buy your existing business and form a new entity. This has several benefits such as:
- You can pool resources
- You can access a larger market share
- You have increased bargaining power
Whatever route of expansion you are considering, it’s important to protect your rights. Seeking legal guidance will help ensure that you are covered.