As your business grows, there may come a time when you want to branch out
and find new markets. Below are ways you can expand your small business:
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1. Embrace the Web.
If you are not yet on the Web and you are looking for
a new market, try selling on the Web. Products that do well on the Web
include digital products (e.g. software and information); products with a
high value relative to their cost of fulfillment; products requiring a lot
of information (e.g. books, music, travel products); products that do not
need to be tried on or handled; and products that are difficult to find
locally.
2. Export. The global marketplace can offer your small business
opportunities to expand sales and increase profits. Exporting, however, is a
different ballgame and presents a whole new set of challenges. It is advised
that you first prepare an international business plan to help you identify
the process of exporting your product to the global market. Your plan must
identify your products with the most international potential; select the
best country to export your products, the economic fundamentals of the
selected countries, etc. This will also enable you to conduct an in-depth
analysis of your readiness to export.
An excellent resource for starting on the export business, including
regulations and guidelines, is the TradeNet’s Export Advisor http://www.tradenet.gov
3. Sell to Government. One area often overlooked by small businesses is
government purchasing. The government spends billions of dollars every year
on goods and services, ranging from paper clips to translation services to
space vehicles.
Selling to government does not only mean Uncle Sam: you have
opportunities coming from the state and local government agencies. While
small fry compared to the federal government, dealing with state and local
procurement can serve as your training ground in dealing with the
government. You oftentimes need a solid track record as a government
supplier before the federal government
The Acquisition Reform Network ( http://www.arnet.gov
) and the Federal
Business Opportunities ( http://www.fedbizopps.gov
) are excellent resources
for learning about all of the markets that exist within the federal
procurement system.
4. Refer your customers. If you are swamped with customers, start
leveraging your business’ popularity and begin referring customers to your
competitors for a fee! Arrange a deal with your competitors, particularly
the start-ups, where they pay you a small referral fee for every customer
that you send their way. This is a win-win situation for both of you: you
earn additional income and remain in the good graces of your customers,
while your competitors save on marketing expense.
5. License or offer a franchise. Let others carry your business in other
geographical locations. By franchising your business, you can expand your
business and reach new markets without expanding your space. However, make
sure that you have professionals (e.g. lawyers and accountants) working with
you, as franchising your business can be an arduous task. You need to do a
lot of paperwork, plus you need to deal with the regulatory bodies of each
state that you plan to operate.
