Starting small is always beautiful. Plus, it allows you to quickly recover when you make certain business mistakes at the beginning. However, staying small can lead to a lot of frustration, especially for a business owner that has dreams to grow beyond a local market to an international pool. Even for home-based business owners who are content with meeting the needs of a local market, what happens when demand begins to grow beyond your current capacity? Do you close the doors to the extra demand, or do you look for effective ways to expand your capacity? In this article, we will take a look at some ways to expand your homegrown business to reach a wider demand pool.
1)Carve a niche
Even if your home-based business produces different kinds of products or services, you need to focus on a single service or product, promote it, sell it, market it – do everything you can to boost the sales of that one service or product. In other words, let that service or product be the ‘face’ of your business. Coca Cola is a typical example. The company owns several other successful products in its portfolio, but the Coca Cola soda drink remains the face of the brand. The big idea is to pick one product or service that you offer easily and very well – that one product you can excel in, with fewer risks. And although you may be tempted to ‘be all things to all men’ and hop between fences, it is often more profitable to have one product or service as a surety.
2)Create supporting or complementary products
It is important to first establish your main product or service before focusing on supporting or complementary products and services. But once your niche is carved, you can expand your product or service line to offer complimentary services or products. The emphasis here is on “complementary” services or products – that is, services or products that can easily complement your main service or product, and yet offer a form of diversity for your service and product line. Diversification comes with several benefits that include a significant increase in your revenue. It also comes with certain risks, and this is why it is important to first establish your main product or service line before diversifying.
3)Find ways to increase sales
It is easier and a lot cheaper, to find new ways to increase sales to your existing clients when compared with trying to bring new customers on board. And although diversifying or increasing your product and service line is one way to go about it, it is certainly not the only way. Even if expanding your product line is too difficult, you can significantly increase revenue by finding ways to sell more of your existing services and products to the clients you already have. One of the easiest ways to achieve this is by using volume discounts. This is especially effective if your production process is not too expensive. One way of selling through volume increase is by offering two products or services for the price of one, or by offering a huge discount for two or more products or services.
4)Bring extra hands on board
Hire an extra pair of hands to help you out. This can be in the form of an independent contractor, an intern, a freelancer, an employee, and even your kids. This allows you to cultivate a network of talented hands while enabling you to adjust your expenses and free up cash flow. The extra hand can also be in the form of technology. However, it is important to do enough research on the kind of technology you want to use before jumping into it. For example, you can visit https://www.intellectsoft.net/blog/business-technology-consulting/ to know more about all the dos and don’ts of business technology consulting.
5)Consider new sales and delivery channels
You may be missing out on so many potential customers if you only have one channel for sales and delivery. If you run a homegrown business, the chances are that most of your customers are from your locality or areas closeby. But you can widen your client base and boost your capacity by considering new sales and delivery channels. And one of the best and most effective channels is the internet. A combination of e-commerce platforms and social media channels can help transform your business by giving it exposure while making it easy to make orders for your products or services. Another effective channel is creating a website to sell your products or advertise your services. You can also partner with retail stores that have access to a wider number of potential customers.
Read on for more advice on how to run a successful business:
*When it comes to legal matters, JJS Justice and their team of experts can offer you legal advice and help you run your business successfully.
*In today’s world, customer retention is becoming more and more important. Read on to find out find out Why It’s Important To Know What Your Customers Want.
*Working from home is a fast-growing trend, which is why you should consider Setting Up A Home Office