Business expansion is essential to ensure business growth and survival. Mere departmentalization is not enough; companies need to think strategically. With globalization, the only practical solution forward is either by entering into new markets or redesigning the entire product line. Here are ten ways in which any business can enter new markets and sell new products and services.
1. Opening New Outlets
Businesses can choose to maximize revenue at their present outlets or consider opening up new outlets in different areas to target audiences with different demographics. It often involves setting up business units outside the country of incorporation. Without appropriate domicile services, registered agency services and other complimentary services, the business is unlikely to thrive in a new country.
If a business has a structured and well-designed business model with constant sales and historical data for comparison purposes, franchising would be feasible. In this way, a business can be taken into a completely new market by the franchisee. Franchising has its own limitations. Through liaising with mall managers, foreign branch incorporation and effective franchise consultancy services, these limitations can be overcome and the business can avail rapid growth and expansion.
3. Licensing Products and Ideas
Licensing great products or ideas like software, games, designs, patents and trademarks opens new dimensions for business expansion. A contractual symbiotic relationship can ensure one business focusing on the creation of ideas while another is responsible for idea deliverance to market, in exchange for a royalty fees.
Expertise in one particular product/service line can lead to the development of another complimentary product/service line.
5. Talent Pool
Businesses can form partnership arrangements or project based collaborations with other businesses for new idea generation through synergy. This gives the business an edge over its competitors, in terms of seizing market share, by designing innovative products. Venturing in to a partnership agreement involves identifying proxy companies in similar businesses in other markets.
6. Tapping into New Markets
A new market could be a client with different demographics, country, or area. Research needs to be conducted on the requirements and needs of the market before targeting a base of different clients. In such circumstances, offshore company incorporation services can be availed, if the target market is in accordance with business expectations.
7. Government Incentives
Government provides various incentives for different businesses to regulate the economy by providing employment, meeting consumer demand and bringing in FDI. A thorough consideration of government incentives in target market is essential before venturing.
Exporting facilitates business expansion, incurring minimal costs. It allows a business to venture into other markets and provides comprehensive market and customer feedback. Planning a business exploratory trip to a new market is essential before any strategic exporting decision can be formulated.
With the widespread use of computers, most of the clients and customers are likely to be tech-savvy. Online marketing provides a cost-effective solution to business expansion. However, the use of intellectual property protection services is essential before switching to the online arena. It protects a business’ trademark and logo against unwarranted and unlicensed exposure and use.
10. Buy another Business / Company
With proper business valuations, strong goodwill, and favorable financial performance and historical and estimated future accounting records, mergers with and acquisitions of similar businesses can ensure one’s own business expansion. Visit Paul Hype Page & Co. to learn more about effective business expansion solutions and necessary licensing, outsourcing, and franchising agreements.
Categories: Business Opportunities in Singapore