For any business to succeed, it needs to adapt in accordance with the marketplace, double down on what is working and eliminate that which isn’t.
The start of the year gives companies time to reflect on what they have and need to accomplish. It also gives them an opportunity to call out bad habits that have manifested, and make the necessary changes to put them back on track to meet their original objectives.
Any business hoping to grow their stock in 2019, this blog post is for you. Make this your go-to guide for scaling your business from amateur newcomer to seasoned market contender.
STRATEGIES FOR EXPANSION
The first step to growing your stock is identifying the expansion opportunities available to you. And while every business is different, each is presented with its own unique opportunities and threats.
Here are 6 business expansion strategies you should consider for your business.
1 Introduce a new product to market
This is a natural evolution in business, not just an expansion tactic. When positioned as adding value, and being responsive to customer needs, this can be a relatively safe way to expand.
2 Increase Your Sales in Existing Markets
While this may seem like an easy task, be strategic and look for ways to revolutionise your pricing strategies, marketing techniques and consumer value-add.
3 Franchise or Start a Chain
Some businesses are easily reproduced – think restaurants, retail outlets and hotels. If franchising, carry out your operations meticulously through detailed action plans, training and employment.
4 Join Forces / Make Alliances
Mergers and acquisitions are how many corporations expand successfully, as it combines the best of two companies. This can be very powerful if you find the right partner.
5 Work Through Agents, Distributors or Buyers
Working with export managers, sales agents or trading houses gives your business access to foreign markets, while staying in control of the sales and terms.
PITCHING FOR INVESTMENT
Once you have identified the expansion strategy that makes sense for your business, you may need working capital to make your dream a reality. Investors can take your great business idea and provide you with the financial backing to sustain it.
But, when it comes to pitching your growth strategy to investors, be prepared. Investors don’t run on emotion alone so you’ll need to deliver accurate projections and state why your product will survive in market.
Here are some suggestions to securing their investment:
1 Have an actionable strategy plan that shows growth
Without a doubt, the most important variable for any smart investor is the opportunity for growth, and the potential for a higher valuation.
2 Have your previous financials ready to go
It is advisable to have three years’ worth of audited financials, as this gives investors a clear understanding of your company and your numbers.
3 Find ways to eliminate waste and excess costs
Reducing your expenditure may seem counterintuitive when it comes to bringing in outside financing, but showing restraint in lavish spending is a key indicator.
4 Have company leaders in key positions
Surround yourself with experts in their respective roles. Company leaders with accountability for their roles is crucial for potential buyers.
5 Know your competition and how you’re better
Not every industry is a zero-sum game and, even with that competition, most companies can thrive together.
Finding investment is only half the battle won. What comes next is constant communication with your investor community.
Effective Investor Relations is vital to the growth of your company, as it enables on-point communication between your business, stakeholders and the financial community.
While it is easy to get caught up with day-to-day business activities, ensure that you are keeping in touch with the people who got you there in the first place – your investors. Otherwise, hire an IR team who can.
Equity Alliance International offers growing businesses comprehensive financial marketing solutions through digital marketing.
Whether you are hoping to find investors for your stock or a company to handle your investor relations, we provide a comprehensive solutions to all businesses.