Business Growth 101: How to Expand Your Business

Companies are constantly seeking avenues for growth and expansion. Whether maximizing their existing market, expanding into new demographics or exploring franchising opportunities, each avenue offers unique prospects for businesses seeking sustainable growth. 

1851 Franchise spoke with Rytis Lauris, CEO and Co-Founder of Omnisend, a marketing automation platform, to gain his insights on how to effectively grow a business. 

Optimize Your Existing Market

While venturing into new markets might seem alluring, maximizing the potential of your existing market can be equally rewarding, if not more so. Lauris advised business owners to first take stock of their current customer base and ensure they know their audience well.

“Companies need to understand their customers' needs and then try to offer solutions to their current problems and predict future ones,” Lauris said. “Try to gather data about your clients to gain insights into customer behavior and preferences.”

Data can be collected easily and efficiently through AI technology and loyalty apps and programs. However, Lauris suggested taking a more personalized approach when possible.

“Brand loyalty can be increased by communicating to customers in a more personalized way, making them feel special and seen,” he said. “Some businesses can also try launching customer communities and fostering their relationship with current clients.”

Knowing your customers and facilitating meaningful connections with them (and among them) will increase your brand loyalty and may even earn your business some organic brand ambassadors along the way. These efforts will not only improve the perception of your brand among current consumers, but also contribute to growth within your existing market. 

Expand Into New Markets

Once you’ve made the most of your existing market, you’ll want to expand into new domains. This takes a lot of research and careful planning. Every market has its own preferences and expectations.

“Understanding the cultural, legal and economic landscape of the new market is crucial,” Lauris said. “It is important to prioritize getting to know your potential customers in these new regions, understanding their needs, preferences and how they differ from your existing customer base. Localizing your products and services is also important, starting from how you communicate your business and ending with the currency on the pricing page of your website.”

Beyond understanding the consumers in a new market, you’ll need a thorough grasp on your new competition in the area. Lauris suggested studying your competition in advance, especially if you’re introducing your brand to a completely new region or country. This can also contribute to your understanding of the consumer base in an area, as you’ll find out which brands are doing well and how they’re meeting the desires and needs of local consumers.

Expand Through Franchising

Ideally, your business will expand to the point where you need to enlist others to help you continue growing your empire. This is where franchising becomes an excellent option to expand on a much larger scale. However, venturing into franchising is a big transition and one that should not be taken lightly. You'll want to be sure that your business is ready and can handle the change in structure and that your brand is in trustworthy hands.

“Before franchising, it is important to make sure that a business has a replicable model, allowing for consistent customer experiences across all locations,” Lauris said. “Other than that, it is crucial to find trustworthy franchisees who share similar values and business vision as a parent company. I would recommend providing franchisees with comprehensive training to keep the services on brand.”

Focus on Sustainable Growth

Growth is an ambitious goal in business ownership. However, it’s all too easy to get carried away if you’re not focused on making sure your brand’s growth is sustainable. While you want to expand, do so with caution and care.

“As a CEO and co-founder of a bootstrapped start-up, I would recommend businesses focus on sustainable growth,” Lauris said. “Make sure that the core business is successful and stable before you decide to invest in expansion. Measure everything, and make data-driven decisions, and this will increase your chances of success.”

Interested in learning more about starting and growing your business? Check out these stories and resources:

• 1851 Growth Club
• Start a Business or Buy a Franchise: Which Is Right for You?
• Coffee & Analytics: The Tools You Need to Grow Your Franchise Business Are Here