The Benefits & Challenges Of Business Expansion

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Almost every business in the world, unless expressly determined not to, will be looking to expand and grow. If you asked even a small Ma and Pa bakery store if they would like to grow their profits, they would likely say yes, even if they have no express plans to aggressively expand.

Businesses know that growth is often a sign of stable profit, of a growing audience, and of rising value. There are many benefits to business expansion. However, is it better to be a large fish in a small pond, or a small fish in a large pond? This is the age-old question. Of course, the large fish is limited but has a stable dominance over its competition. The small fish worries about being outclassed at every turn and eaten up, but there is much more potential for exploration.

This quandary should emphasize that there are often benefits and challenges to expanding your firm. It’s best to keep them both in mind to make the practical decisions that are sure to make the biggest difference. Thankfully, the advice we have considered here could potentially help you do this with ease:

Staff Management

Staff management is perhaps one of the most important daily drivers of your business. Without your staff to operate your systems and to generate ideas or optimize their daily efforts, you’re going to fall flat over time. Also, lacking adequate management systems for your staff can make their working experience less than ideal, which can result in a brain drain and high staff turnover. This costs businesses plenty in training, which is even more impacted by the fact that as a business grows, it will cost much more time and money to ensure you are enlisting the managers of tomorrow.

For this reason, it’s important to hire a competent ratio of managers to staff. You must ensure your staff have adequate place to work, an organized place to work, and instruct them well enough for functional work. You must also give them the systems to gain as much information about their daily efforts as possible, and ensure they’re all using compatible software to make their decisions effectively. Thankfully, the use of enterprise level ecommerce software can help you check off all of these boxes and more. This is especially helpful when trying to implement a system in which your staff can manage daily progress, managers can overview and verify the entire affair, and reports can be easily generated based on the information provided via these platforms.

Ethical Contributions

When you become a larger form of business, your impact on the world around you becomes undeniable. Modern consumers wish to be ethical, even if that’s in a small way. For example, it might be that if you’re a high-end clothing retailer, that for every certain amount of purchases you hit, or how much a promotion is engaged with, you might donate a school uniform to a disadvantaged child. If you’re a business that relies heavily on paper, you might try to fund efforts to combat deforestation worldwide, or to plant trees yourself. If you sell 10 mattresses, you might donate one to a homeless shelter.

Your ethical contribution can serve as a form of promotion of course, but must never be something you somehow profit from outside of potentially more purchases. This can help keep your PR image clean, and for you to actually conduct some good work. Let’s consider this last mattress example. One out of every 10 sold might not seem like a huge amount, but let’s say in a six month period you sell 4000 mattresses. This means 400 mattresses are being used to shelter some of the neediest in our society. Long-term incremental effects like this can really help people view your brand with positivity, and there’s no shame in conducting your business for that.

Additional Departments

The additional departments you construct will need to be implemented with wisdom. For example, payroll cannot just be one guy dealing with a team of 300. You might consider switching up your subscription services, or even constructing an in-house team. For example, large firms might even begin to develop their own legal team, hiring competent lawyers only versed in the matter of that particular business, helping the firm thrive and seek justice in cases brought against them, or to potentially fight copyright fraud or a range of employment issues with the best minds at their side.

While all of these challenges could be considered difficult, they can also be viewed as great opportunities. And of course, for the modern business leader, he must view things in this way!

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