Over 50% of executives consider company expansion a top priority for business growth. Once-thriving revenue streams are now decreasing or stagnant. Expansion is a good way for companies to replace or revive them.
It includes the creation of new business models. Many companies are also creating new products and services.
It is now an essential step for businesses. It can allow them to rebound after the uncertainty of the past two years.
Many companies are experiencing high success rates using this strategy. However, many others are facing challenges due to common business expansion mistakes. You can avoid doing the same.
Read on to learn about the top ten mistakes to avoid when expanding a business.
1. Inadequate Market Research
Expanding any business, especially into the global market, requires specific research. It involves testing the market using focus groups and customer surveys to determine which markets are most lucrative and best for you to enter.
It also involves analysing both internal and external data. It includes any previous successes your company may have in this market. Will your current product or any new product considerations be a good fit? Only you know your brand and customers best.
2. Lack of Customer Focus
Focusing on your customer is critical when doing your research. What do your customers need? Does your product meet this need?
Putting your customers first can increase their loyalty and trust. It can lead to greater product demand and profits.
You’ll need to determine how customer needs change based on geographical location. You might be able to expand your product offering to fulfil these needs.
3. Not Adapting Sales and Marketing Strategies
Knowing your market better can help drive your sales and marketing strategies. Never assume that if a method works in one market, it will succeed in another. It doesn’t mean compromising your brand but tweaking your sales and marketing strategies within each market. It is inclusive of your marketing channels as well. You’ll need to consider cultural differences and choose the best approach.
4. Hiring Unsuitable Applicants
Your employees will be responsible for driving your strategies, so you’ll need to hire candidates that are the right fit for your organisation. They should be able to work well and advocate for your brand.
Many companies had to adapt their hiring process and how staff work over the last two years. Over 75% of executives said hiring and retaining Talent will be a crucial driver of growth this year. They’ll invest in this area to combat staffing challenges and retain the best Talent.
They’re turning to companies that specialise in remote worker services. It can make onboarding while expanding globally a lot easier for your company.
5. No Clear Direction
Every new opportunity might look attractive. But chasing too many could result in you spreading your resources too thin. A lack of proper research could lead to misdirected focus.
Even worse, it could affect the success of each opportunity you’re pursuing. It’s best to focus on specific areas/markets based on research.
6. Lack of Specific Global Locations
Many businesses generalise their expansion. They often focus on a continent or range of countries. However, knowing precisely what global locations you should target is crucial.
Do local market research for the locations you’re interested in before deciding. You should review local laws, currency, and specific business practices. You should also know who your potential local competitors are.
7. Improper Planning for Global Logistics
Knowing the global locations, you’ll be expanding to is one step. The next involves reviewing logistics so you can successfully enter the global market. Remember that some of the resources you use locally may not be adaptable to foreign needs.
Consider language requirements for marketing automation or software to accept foreign currencies. Your global workforce will also need to be able to communicate effectively.
It’s easy to overlook some of these seemingly minor details. This includes how time differences may affect doing business.
8. Not Monitoring Progress
When growing your business, it’s essential to document the various processes involved. It can help you better manage some of the issues mentioned above.
Documenting can facilitate the development of key performance indicators (KPIs) and makes monitoring the progress of your company expansion a lot easier. Doing this will allow you to identify what is and isn’t working.
9. Inflexibility Toward Altering Strategies
If a strategy isn’t working, don’t hesitate to change it. It requires timeliness and flexibility, which is only possible with continuous monitoring.
Setting KPIs will give you a timeline for meeting specific goals. If these become unattainable, you’ll need to consider altering your strategy. It can be the difference between the success or failure of your company’s expansion.
Listening to customer and employee feedback can also assist in determining a new strategic direction.
10. Unrealistic Expectations
Analysing your data can help manage expectations. Set realistic timeframes and targets, then determine if you are attaining them.
If not, see where you can improve and monitor these changes. Additional changes may become necessary.
You may also experience great results initially. Gauge if these are sustainable, given your current resources. If not, make the necessary changes.
Expanding for a Successful Future
Companies realise that adapting to change is the key to success. It can entail altering your business model or expanding product offerings and services. However, this should be timely and relevant.
It can fuel the growth your company needs to make a profit. However, company expansion involves following crucial steps. It starts with researching your potential market and customers.
You’ll also need to increase your workforce as you expand into new markets. Not getting this right is one of the companies’ biggest business mistakes when expanding. You don’t have to.