![]() Here are a few strategies to consider.īest for: Entrepreneurial business owners willing to experiment to reach customers in a new way.Īnother retail expansion strategy you might consider is introducing a new business model. ![]() The retail expansion strategy that makes sense for your business will depend on the above mentioned factors. Choosing a StrategyĪfter weighing all the variables and deciding that expansion is viable, the next thing you will need to do is choose the strategy you will pursue. For example, if your business has been meeting your goals the last few years, but you're now facing headwinds like higher interest rates, tightened consumer spending, or supply chain disruptions, you should factor that into your expansion decision. You'll also do some demand forecasting specific to your business, industry, and area to help you decide if the time is right for expansion. You need to know if your staffing needs are currently being consistently met.Īs far as specific benchmarks your business needs to meet before you pull the trigger on expansion, it really depends on your unique business and the scope of your expansion strategy. Staffing: Staffing can be a challenge in today's retail environment.How much have you penetrated your target market? Is there room for growth within your existing lines of business before you consider expansion? Customer demographics: Understand who your most loyal customers are and what strategies you use to reach them.This will figure heavily into determining where you will get the capital for a retail expansion. Revenue, profit, and transaction data: Beyond expenses, look at your other financial and transaction data to understand how much money you are actually making and the performance of your products and sales channels.Operating expenses/operating costs: If you have high operating expenses, you may want to find ways to lower those before expanding.Some of these metrics you'll consider more closely when choosing an expansion strategy, which we will cover in the next section. Check the data from your POS system as a starting point. Use Metrics to Evaluate the Health of Your Current BusinessĪs you consider the questions above, you'll want to be aware of the analytics and metrics that best define your business's success. Your current operations must be strong to support your expansion efforts. The last thing you want to do is open a second location or expand into a new product line to save a struggling business. Does it have a talented, dedicated staff?Īnswering yes to all of these questions indicates that you have a solid foundation and procedural plan to expand. ![]()
0 Comments
Leave a Reply. |