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Expanding Your Small Business
It is estimated that small businesses account for over 99% of all organizations in America. Small firms have a massive impact on the overall economy and the GDP that is produced. Commonly, a small business is formed based on a unique idea, product, or service that satisfies demand in the marketplace.
The first few years of trading for any small business can be difficult as revenue streams are likely to be low, and startup costs will reduce the overall profitability of a small firm. However, if the business becomes a success, it will have the potential to grow and develop, thus gaining increased revenue streams and a larger market share.
If your small business has successfully navigated through the crucial first years of trading and is profitable, you may seek to expand the organization. This article will explore three top tips that allow a small firm to expand its operations and benefit from scaled and sustainable growth.
Invest in software solutions
A small startup firm often starts with a minimum of staff and may even be run from a home office in its early days of trading. Once growth is possible, investing in more advanced software solutions that can support an expanding organization is important.
A key piece of software that any growing business should consider is association management software, such as that provided by Nimble AMS. AMS software is a complete solution for businesses and contains a range of benefits that can help cultivate growth.
For example, many AMS platforms contain applications that can improve the e-commerce side of a business with tools that help to cultivate cross-sell opportunities and manage the payment side of online trading. In addition, AMS software can provide reporting tools for businesses that allow data-driven decisions to be made that will help a business to grow and plan for its long-term future.
When a business seeks to expand its operations, this normally requires taking on new staff members and forming new teams or departments. For example, a growing business may need to create a larger finance department to control its spending or a new IT team to drive the expansion of its IT infrastructure. However, it is important to consider that outsourcing new teams can be a more cost-effective way to achieve scalable growth.
There are many key benefits of outsourcing, but the main reason to hire external workers is to reduce staffing costs while gaining access to highly skilled and knowledgeable specialist teams.
Promoting your product or service can be costly if you use traditional media (such as TV adverts or radio publicity). These costs can create a barrier to smaller businesses that seek to enjoy growth but have a relatively small advertising budget. Thankfully, the cost of advertising online is significantly lower than in traditional forms of media.
The average cost of reaching 1000 people online through advertising is just $3-$10, while traditional advertising to reach similar numbers of people can be more than $22. By creating a tailored online advertising strategy that reaches your intended target market, you can achieve business growth through increased revenue streams without spending excessively.