If your MSP company is profitable and generating quality leads, conversions, and repeat customers, then you might be thinking about expanding your business. Expansion is a scary step for most business owners. Most question if they can establish and maintain more business while giving their current customers the quality services they depend on. If you prepare yourself for business growth, analyzing your goals and the pitfalls you might face, then you’ll be on your way to developing a framework for successful expansion.
What Does Growth Mean for Your Business?
Growth can mean different things to different businesses. It can mean generating more sales and profits for an existing company. It can mean developing more services for your customers without changing the size of the business, or it can mean expanding the business into more locations and global markets.
Deciding which type of growth you want for your MSP company is the first step to profitable expansion. Whether you want to expand your existing business internally or purchase another company, being prepared and doing your homework is crucial. Ask yourself these questions before you take the leap to expand your business:
- Do you accept the risks involved with business growth?
- Is your company stable enough for expansion?
- Are you exceeding the average sales and revenue of your competition?
- Are your employees willing to accept the realignment of the company?
- Can you anticipate, cope and find solutions to the tensions associated with organizational growth?
- Will expansion add value to your business?
After assessing all these questions, look beyond just surviving the initial business expansion and prepare future growth strategies, as well.
Which Expansion Method Is Right for Your Business?
When you’ve decided your business is reaching your goals and the time is right for expansion, the next step is to decide the way you want your business to grow.
Is a new location or expanding to a global marketplace in your plans? Maybe you’re thinking about offering your business as a franchise. Diversifying to other types of services and products is also an option or merging with another company.
Do your homework about all the expansion options available for your company. Develop a growth strategy that focuses on your target market and the issues that impact how you can reach your expansion goals. Focus on your primary growth objectives, working at setting yourself apart from the competition.
Consider Creating a Business Expansion Team
Creating a business expansion team can help you identify any issues that might hinder your expansion. Whether you develop the team with internal employees or outsource to a professional expansion team, it can be vital to your growth success. The team can help with your expansion efforts by analyzing the risks, challenges and future strategies of expansion.
The team analyzes your target niche and identifies your business needs for additional space, finances, and economic resources. By enlisting an expansion team, you don’t have to do all the analysis yourself but get other viewpoints about risk factors, competitors, growth strategies and regulatory issues. The team collects the data you need to make the right decisions about all aspects of your business expansion.
The data collected by your team is invaluable for growth. It helps you design a marketing plan for attracting more leads to your expanded business. The analysis also helps you identify new markets for your MSP services and which additional services you should add to attract a wider audience. It’s also the responsibility of the team to develop updated business plans after the expansion and improve marketing and promotional campaigns.
When you’re ready to make the bold move to expanding your MSP company, be innovative and always look for new growth opportunities. By building the value of your brand, studying the competition and continually analyzing your market, you can grow your business and your profits.