Growth is the name of the game for retail businesses as well as every other enterprise. Expansion is certainly a sign of success yet growing too quickly or making the wrong expansion decision can sabotage your company’s value. Expansion plans should be thought out well ahead of time and carefully implemented for as seamless of a transition as possible. Expansion involves more than merely adding another location or two. Expansion also refers to the addition of new sales channels, products, and services. Even expanding to one or two additional markets can significantly increase the value of your retail business. In fact, sometimes all it takes is the opening of a temporary pop-up store to generate interest in your brand and facilitate expansion. Let’s take a closer look at each of these expansion considerations for increasing the value of your retail business.
1. Expanding Products and Services
If you are on the prowl for a means of boosting your company’s value, do not automatically assume opening up a new store in a separate location is the answer. In some situations, the products and services offered are more important than the location at which the sale takes place. Take some time to review your offerings. If you can think of any additional products or services to add, implement them to capture that much more market share. When in doubt, ask your current customers for suggestions. Find out what your customer base needs or desires in terms of products and/or services, meet this need with a new offering and your retail business will become that much more valuable.
2. Open Up Another Location
Extending operations to another location is the most popular means of expanding a retail business. Open another location and your brand will reach that many more people. Continue to expand your operations with additional stores in new locations as time progresses and you will touch base with that many more new customers, many of whom will prove to be loyal patrons in the years to come.
It is a mistake to rush into several new store openings in an attempt to expand your retail businesses footprint. Take your time with each successive store opening. If it turns out operating any more than a couple stores is not a viable business strategy, do not open additional stores just because you have the capital to do so. Above all, your new locations should not be built near one another. Otherwise, you run the risk of your stores being redundant.
Try to put a unique spin on each new store you open. Each location should share the same overarching branding, color scheme and overall theme yet there should also be some personalization. Make each store slightly distinct so shoppers feel as though they are spending money at a location that is at least somewhat different than the others. As an example, consider carrying merchandise for local professional, minor league and youth sports teams to ingratiate your retail business with the local community.
Though each store should have some unique features, they should still function with standardized primary procedures and protocols. This standardization makes it easier for you, your managers and your employees in the event that someone has to fill in at another location. Some retail business owners even go as far as standardizing technology and furniture across stores to ensure uniformity.
3. Pop-Up Your Business in New Locations
Pop-up stores are quickly spilling into the mainstream. These are temporary stores that allow business owners to gauge the interest in their products and services without making a lengthy commitment to the location in question. Do some market research to determine which locations might be optimal for your unique retail store. Set up temporary pop-up stores at these locations, measure the customer response and use the data to determine if it is prudent to set up shop permanently in a new city/town. If there is minimal response to your business or if the response gives you the sense that your brand will not catch on, do not hesitate to try another pop-up store in another location. Keep trying this pop-up approach until you find the optimal location for your new retail business store.
4. Expansion to New Sales Channels
Opening up a completely new location might not make business sense for your retail company as it currently stands. It might make more sense to open additional sales channels to spike revenue and expand your brand’s reach across several mediums. Additional sales channels include but are not limited to linking the brand to social media platforms, taking advantage of mobile-based solutions like apps designed for your company and launching an online store for additional sales.
A comprehensive e-commerce website will catalyze your retail company’s revenue. Online stores have minimal overhead so your margins will be that much larger. Those who do not want to launch an online store can still take advantage of the web’s sales channels by listing their items on online e-tailers such as Amazon, Etsy, etc. Above all, be sure to have a powerful social media presence. Interact with customers and other parties through popular online social media platforms such as Facebook, LinkedIn, Twitter, Pinterest and so on.
5. Power in Numbers: Team Up With Other Businesses
Find another business that can benefit from an alliance with your retail store. Such a business alliance can prove mutually beneficial to both parties. Plenty of other businesses in your area are also likely looking to expand. Combine your resources, create events to stimulate business, leverage one another’s assets and business will start to boom in due time. This corporate synergy will expand each business’s reach, increasing the value of both enterprises.
6. Tap Into New Markets
If you are willing to modify your product line or add a new product, you will be able to tap into new markets with potentially unlimited profit potential. Do not assume you have to stick to the niche that helped your retail business become successful in the first place. Consider selling something new or up-selling an extra service to open up one or several new markets. Continue to evolve your business, expand your offerings and you might find there is no limit to the number of markets you can capture. All it takes is some creativity, elbow grease and determination. Just be mindful of the fact that attempting to segue to new markets carries a certain amount of risk. Perform your due diligence, test your ideas before making a commitment and you can proceed to new markets in full confidence that there will be ample demand for your offerings.
Not only will expanding your retail business increase the value and revenue for your company, but it will also make matters easier if you decide to sell your business in the future. Take these 6 ideas into consideration to help increase the value of your retail business in the long run.
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