Is There A Perfect Time to Expand Your Business?

There may never be a perfect time to expand your business - especially if you are thing of national and international expansion - but there are always good times to expand.

You may not realize it, but now is a very good time to expand your business regionally, nationally, and internationally. For a recent example, look at Volkswagen. They previously moved into China and Latin America. Their involvement in the American economy is minimal when compared to their competitors (Ford, GM, Toyota, etc.). Because of this, VW is suffering least. They have diversified their markets, and are gaining market share.

As another example, McDonalds realized that its products are very competitive in many markets. The company knew that if the products were competitive, they should be able to expand within the markets, and become a greater competitive force. At the beginning of the year, McDonalds decided to open 1000 new stores. Once the recession hit, McDonalds focused on its efforts on their dollar menu. Because of this, McDonalds has seen its sales rise because of the low prices. The company took a look at its market, focused on the trends, and improved its products to compete effictively.

You should also consider expanding your business because chances are your competitors are thinking the same thing. In their January 2009 State of the Market: Mid Year Insights Report, the Aberdeen Group found that 43% plan to create or expand sales channels, 39% want to develop strategic partnerships, 36% are focused on developing new products and services, and 30% will try to improve brand visibility. This study shows that the recession is creating opportunities to innovate, expand, and steal marketshare. A more recent Ernst & Young survey found that 93% of small business owners are maintaining or increasing their focus on expanding into new markets. Additionally, companies that can expand during a recession while other companies are shrinking will outpace the competition and build a strong competitive advantage.

Some economists are claiming that we have reached the bottom of the economic decline and the economy is slowly on its way up again. If you have the resources, you may want to invest in your business and make your move now.

So, if you really want to expand now, what should you be doing?

• Stay focused on your company’s goals, but reexamine them if you feel it is necessary - Consumer attitudes are changing. Make sure your business reexamines the marketplace for any threats or opportunities.
  
• Invest in effective, money-saving technology
  
• Pay attention to the people who pay you – your employees and customers
  
• Always watch for new opportunities.