Business Expansion
as major drive towards success
Every company aims at success in order to make profit, unless you are a non-profit organisation. In general, a business starts somewhere, the so called „start-up“ or related to time „start-up stage“. Before even getting your business idea to the start-up stage it is crucial to determining criteria that emphasis and support your concept and serve like a guideline. Your business plan needs to cover all aspects of growing and establishing a successful business.
Management studies is a complex field that covers quite a lots of (intra-)disciplines with high numbers of theories that discuss and determine how to grow a successful business. In general, there are three major requirements that are commonly known within business management studies. Many experts tend to focus on one requirement only and claim that it’s the major drive to success.
3 Requirements that Determine Success:
• Marketing Mix
• Marketing Strategy
• Market Research
In fact, a mix of all of those three requirements should be on top of your lists to determine your way towards success.
However, business owners and managers have the tendency to over analyse or to not pay much attention. As consequence, over analysis results often in endless discussions and decision making needs some time before implementing the actual strategy of your business plan. Under estimating analysis can lead to missing out essential conditions that determine your success.
If you are the owner of a company or in charge of a management department, you are responsible for driving your company towards success. I advise you to focus on two words only that serve as your new guideline: „Business Expansion“.
Every requirement and every strategy in your business plan refer to business expansion and you are the one who aims at making profit. Hence profit derives from business expansion. Of course, most objectives come along with potential risk that you need to manage. But risk can be lessened by business expansion and better financial management can be planed for a proper expansion of your business. If you don’t think big and hesitate to expand your business, you might loose the battle to competitors that have implemented business expansion as major chapter in their business plan.
Of course, imitation is the major method to ease your start-up stage. But here lays the mistake most business owners do: Every company becomes old. As consequence, once you imitated a process or strategy of another company, you might get dependent on that company. Hence you copy your competitor’s strategy but won’t recognise that the company is always two steps ahead of you. In addition to that, you might also risk stagnation, in case the other company doesn’t expand its business or sticks to outdated strategies.
In order to compete with global players, you need to expand, analyse and re-invent your processes permanently. And the more you focus on business expansion the more likely you are forced indirectly to keep updated and evaluate your business environment, hence achieving potential advantages.
Some examples of companies that implemented business expansion that lead to growth or failed due to errors within the concept:
• Walmart’s success due to its expansion and economies of scale
• Window’s success due to networking marketing and distribution
• Amazon’s & eBay’s success in e-commerce business due to number of products
• Samsung’s success in smartphone business due to expansion of its product portfolio
• Nokia’s & Blackberry’s fail due to insufficient expansion strategy & performance
Hence, the bottom line of all that: you need to expand your business to prosper. You can do as much analysis (don’t overdo it), research and development as you want. Just remember, focus on this primary objective for your company: „Business Expansion„.