As an ambitious owner of a home-based business, you will probably want to see your company get to the next level in terms of profitability and continued growth. Bear in mind, however, that a successful home-based business, run by just yourself or a couple of people, without rent, inventory or employees, can become a victim of its success. When the phone continues to ring and customers keep on coming back for more, you could be tempted to hit the panic button.
At one extreme, you burn out, and at the other, your profits get burnt up through spending too much time and money in taking new people on. Here are a few tips on how you might expand without sacrificing profitability or your sanity:
Join up with another business
Joining forces with a company in a similar line of business is one of the easiest types of marketing available to you. If, for example, you specialize in making spa products then the local gym or health club might carry them and offer members a discount.
You could rent some virtual office space online or share physical space with a local business that is also growing. Business centers routinely rent out facilities such as conference rooms and high-speed Wi-Fi, remote voicemail and receptionist services. These offer home-based business owners the opportunity to take out tailor-made office services to help them expand their operations.
Expanding your business often means taking on new employees, raising capital, and purchasing new equipment. It could involve leasing warehouse or office space. This all means investing in your business, and it often makes sense to call on the services of experts such as Charterhouse Capital Partners. A top investment firm like this will make sure that your return is maximized, which is a critical consideration for any business, and especially a small one that is seeking to expand in a controlled way.
Increase sales to existing clients
It’s cheaper to increase your volume of sales to existing customers than it is to find new ones. Volume discounts are a great way of helping to achieve this. If your products don’t cost much to produce, you could offer two-for-the-price-of-one deals without much profit sacrifice. Or reward your regular customers by offering a free item for every 10 items they buy from you. Arts-and-crafts stores, hair salons and car washes frequently do the same.
Become a franchise
Licensing, franchising and wholesale distribution are a few of the ways home-based businesses can grow. To become a franchise, you need to have a business format such that your business could be run successfully by someone else. You could also think of converting it to a business opportunity if you have a standard service or product that could be resold multiple times.
There are many different ways to expand your home-based business, but if you don’t want the process to spin out of control you may need to seek expert advice on matters such as investment, in particular.