If you start a small business, you will probably be happy just to get it off the ground successfully and keep it running in the local area. After all, many small businesses fail after only a few years. This is a very competitive market and one that is difficult for people to succeed in, especially if they have never owned a business before. However, as you keep your company going and start to build it up, you may start thinking outside of the local area. You may start thinking about just how big it can become.
When you talk to a professional consultant like Richard E. Schaden, he will tell you that any sort of consumer-based business has the potential to grow. For instance, just think about a restaurant chain. When it started, there was no chain at all. There was just a single restaurant that was probably struggling to make it, just like yours. However, the owner was able to look at the bigger picture and keep pushing forward until there were dozens or even hundreds of stores. What are some of the things that play into this type of success? You need to consider them if you are ever going to get to that point on your own.
Products that Sell Anywhere
First, you need to have a product that people can use anywhere. Things that are specialized to certain locations are not going to do well outside of those locations. For example, a business that sells boating supplies may do very well in Michigan, on the coast of the Great Lakes, but it is not going to do anything in Nebraska, where there are far more fields than lakes. You have to know what you have and if people want it.
This is why restaurants tend to do so well. People always need to eat and they appreciate good food anywhere. It does not matter if you are in a bustling city on the East Coast or a laid-back city in California. You can still sell your products. You can expand your business and let it grow organically into adjacent areas. The only thing that you really have to think about is the amount of people in any given area who may want your food.
Another thing to think about is over-saturating the market. You do not want to put up too many of your own businesses, as you turn them into a chain, in the same area. You are just going to steal your own customers. This is fine because you are not actually losing those customers, but the problem is that you double your operating costs – having two stores instead of one – without doubling your customers. You have to spread things out enough that people can fill both stores at the same time.
For many companies, the key to the whole thing is to open up franchise locations. Do not worry about running them all on your own. Instead, just sell the name to other people who are interested in getting into the same type of industry. They will pay for the name because it comes with popularity and promotion, and you can then take part of their profits. This helps you expand past what you could handle all by yourself.