BY JD CRAIGMAN
The launch of a new business is a major milestone in life. After a successful launch, plans to take off and grow immediately begin to surface. A growing business will need to continuously introduce more and improved products, services, and customer service. If executed successfully, these factors will generate increased sales and profits for the business. Eventually, the idea of expanding the business will become more and more appealing.
The quality performance of a business is great, but not the only factor of consideration when expanding a business. This is an important decision and a major step. Before you make the final decision to expand your small business, you must decide if the business is ready to experience growth. The following points will help you to determine if your business is prepared.
- The Business Has Recurring Clientele
A successful business will have established a dedicated clientele. One of the biggest marketing tools for a business of any size is a satisfied customer. A high recurrence of customers reflects the quality and demand of the products or services offered.
Clients that choose to patronize your business continuously are extremely valuable. Their commitment to your brand is indicative of the value of your business and service. Also, the profits generated by this category of clients contribute to the stability of the business.
Take precautions to sporadic increase in business or customers. Factors such as promotions, season, surrounding events, and other marketing matters sometimes cause a business to flourish. This trend should be noted in a performance record for further assessment. You wouldn’t want to immediately expand your business because of one record-breaking sales day, week, or month.
Organize a team to observe, analyze, and identify the changes and what they mean for the business. Survey your clients to gain perspective on their buying motivation, practices, and concerns. Utilize their feedback to make the necessary changes or improvements within the business.
- Your Profit Margins are Excellent
Assess the net income of the business to examine the profit margins. It’s easy to assume the business is performing well based on the number of customers in the door or visitors to the website. The most reputable indicator of business performance is the profit margins, which reflect the net profits of the business.
Success can come and go. It’s essential to understand what aspect of your product or service helps to ensure a positive profit margin. Seek longevity and introduce tools that will help the business to earn an attractive profit margin continuously.
A successful business owner must invest in their brand. Once the profit margin is identified, invest a portion of it back into the business. Proper investment is a dynamic growth tool for your business, as it motivates a continuous cycle of increased earnings.
- You Can’t Keep Up
You know that business has reached great success when you become overwhelmed with customers or orders. This may be an indication that you need to increase the size of the workspace or recruit more employees.
Business expansion may be the answer to help with an overwhelming increase in business. Business development teams can assist with the process to ensure that expanding will be beneficial.
- The Industry is Lucrative
A lucrative or expanding industry is one in which a well-structured business can thrive. Evaluate the condition of the industry to identify its current position. Has it grown over the past 3-5 years? Has it been a lucrative industry for the past two or more years? If so, the market in this industry may be increasing.
Expanding a business is ideal in a lucrative industry. This is a good indication that the industry is strong enough to support an expansion of your business. Observe the changes within the industry that may have caused it to become more lucrative. Ensure that your business is aligned with these changes in order to perform to the expectations of the industry’s demographics.
Is your business ready for expansion? After careful consideration of the above factors, you should be prepared to gain clarity about the possibility of expanding your business. Make calculated decisions about expanding the business to position it for greater success. If your business is performing great and prepared to perform successfully at a higher level, an expansion may deliver increased profit margins and clientele.
About JD Craigman
JD Craigman is the Creative Director & Owner of Intravate Consultants, an award-winning marketing firm based in Miami, FL. He is a former Division I student-athlete, having played both football and basketball. His collegiate career began at Mendocino College, but after two years, he moved on to the University of Kentucky. While at UK, JD became a member of Omega Psi Phi Fraternity, Inc., where he served as Rho Lambda Chapter President. He proudly earned a Bachelor of Arts degree in Sociology in 2008.
After graduating, JD found himself in marketing, and with the birth of Facebook, Twitter, and Instagram, digital marketing was the “new thing,” and he was determined to master it. JD launched his first small business in 2010, and he was able to utilize everything learned in the digital marketing space to become successful. As JD started networking with local business owners and operators, he discovered that a significant pain point for them was marketing. Shortly after that, he launched Intravate Consultants, LLC. Their niche is to develop comprehensive and smart digital marketing campaigns that allow small business owners to focus on running the business. JD Craigman hosts a seminar series, Get Legit, for those small businesses looking to fine-tune their brands through logo design, digital marketing, social media, and more. In 2019, Intravate Consultants won a Reed Award, the most exacting award in political campaigns, grassroots, and advocacy, for website design in a mayoral race. Intravate Consultants was nominated again in 2020 for Best Website for State Legislative Campaign.
When JD is not at the office, he is volunteering his time with multiple nonprofits. He is currently a member of the 100 Black Men of South Florida, where he serves as Chairman of the Leadership Academy, the 100 Black Men mentoring program. JD serves on the board of Miami-Dade Black Affairs Advisory Board, as the Marketing Co-chair.
To learn more, visit https://www.itvcst.com/.
