THE NEED FOR EXPANSION

THE NEED FOR EXPANSION

THE NEED FOR EXPANSION

The principles of ONLINE MARKETING discussed earlier in connection with larger enterprises apply equally to the small business and not the least important of these is the need for expansion. For no business, great or small, can afford to stand still. One never achieves such a cosy situation in any competitive venture because the needs of one's clients and the world in which they live change constantly. The businessman who opts to sit back and let his business 'tick over' will find, very soon, that it is running downhill.

He has not only to change with changing circumstances. Because of the effect of competition, it is not enough merely to make changes as and when the need arises. Change must be anticipated. At all times he should endeavour to increase his trade because it is inevitable that, month by month, year by year, some of his existing custom will be eroded away.

His overhead expenses constantly will increase due to the effects of inflation. So he must find better ways of running his business to offset his rising costs.

There are no soft options and the only way he can hope to keep his business alive and profitable is to seek to expand his activities.

Expansion can take a number of forms:

1. By increasing sales of the existing range of goods or services.

2. By selling more expensive goods, thus achieving a higher monetary turnover at the same percentage of profit.

3. By bringing additional lines into the range, so that existing customers may be persuaded to purchase more of their requirements from the business.

4. By extending the size of one's market, i.e. opening another shop in a different neighbourhood; or introducing, additionally, a range of goods that will attract a different section of customers from those currently served.

Expansion of profits (as distinct from expansion of turnover) can be achieved by reducing costs. This means running the business more cheaply without loss of effectiveness or sales turnover.


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Please Note

The Trade is, of course, a major source of product ideas. All manufacturers examine, with avid interest, the new products of their competitors.

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