Top Tips For Expanding a Small Business

Britain certainly has a very promising future when it comes to the business field. The innovation community is growing and, with many budding entrepreneurs surfacing across the many business industries in the UK, it is inevitable that many industries will be regarded as ‘Red Ocean’ markets as industrial saturation sets in.

London_skylineMany markets will be difficult to enter, as little market share is available for new entries, and many customers are loyal to the existent brands. In this case, those who think ahead and focus on future business strategy will undoubtedly ask themselves the question: ‘So what does the future hold for ambitious business people who seek corporate expansion?’.

As a company that specialises in company registration, we at eformations have a broad knowledge about expansion trends across business markets, and we believe that there are many answers to this challenging question. We shall use this blog to discuss these facts, and we certainly hope they guide you towards company success when your organisation is ready for expansion in any of the UK’s industries, which are all characterised by fierce competition.

Diversification

Experts like Igor Ansof, a businessperson who developed the marketing matrix concept, believe business diversification is a fundamental part of business expansion. Diversification is where a company decides to produce different products to spread their services across different markets. For instance, an organisation offering company formation assistance (like us) can also offer a complete accountancy service. This way, the company can conquer different markets, encouraging profitability for successful expansion.

Government Aid

The British government has always reiterated how much they are willing to support businesses in the UK; both new and existing firms. It is important to take advantage of the privileges they offer. For example, the new £500,000 Annual Investment Allowance (announced along with the 2014 budget) states that businesses can claim 100% tax relief on all investments gearing them towards expansion this year.

Effective Marketing

complete-accountancy-service-img1Advertising and promotion have been a pivotal aspect of business success for many years now. Modern business marketing has changed, and it is fundamental that businesses adjust to current trends such as the use of social media and other online facilities. According to marketing group Social Media Today, nearly 50% of businesses now have online content marketing strategies; as such measures have turned out to be effective communication platforms. Use marketing to increase brand awareness to allow long-term expansion.

Alliances

The trend of forming partnerships with foreign companies is very popular among UK firms. Statistics show there were 116 cross border transactions involving British firms in the third quarter of 2013 alone. The main reason why these companies do so is similar to diversification. If the local market is saturated, it is a good idea to expand into foreign territory means of gaining extra profits. A risk eliminating strategy of foreign expansion would be licensing your products or services to a local company, so that the local firm can easily introduce your product into the local market and lower the barriers to entry.

There are numerous other strategies that businesses can use to expand and transform their brand into a nationally recognised brand, or better yet, a globally operating entity. It is important to ensure that each measure is approached with a carefully planned strategy to minimise the risk of failure. Companies are always growing, and if you wish to expand through starting a new company then do not hesitate to contact experts like us at eformations. We have the relevant experience to help make the whole process much easier for you.

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