Franchising all or part of your business can be an attractive expansion strategy, but how do you know if yours is a business that will work well for others? There are a few key questions to consider.
One common strategy for companies that want to expand is growth by acquisition. Other acquisitions may include acquiring a competitor, expanding a brand globally, or expanding a company’s product line. No matter what type of company a business chooses to acquire, there are advantages and disadvantages to this type of growth strategy.
Business owners are always thinking of new ways to expand their business, and one opportunity to consider is vertical integration. A company is vertically integrated when it controls more than one level of the supply chain. This can include owning or acquiring its upstream suppliers, owning or acquiring its downstream distributors or a combination of both.
Successful businesses are always looking for ways to expand and increase their power in the marketplace, and one strategy that will help you get there is vertical integration. When a company is vertically integrated, it controls more than one level of the supply chain, such as owning its upstream suppliers and/or its downstream distributors.
Retained earnings are the income that has stayed in your business from the startup phase to the current reporting period. Thriving businesses have a variety of expenses, such as supplies, equipment, maintenance, repairs, research, labor, insurance, advertising, and taxes. Learning how to manage your retained earnings is an important part of financing and growing your business.
When you are ready to grow and expand your business you should consider growing by duplication. Replicating your current business model in other locations is proven method of growth. However, if you want to avoid the potential pitfalls of expanding, be sure to read MOBI's Top Ten Do's and Don'ts of Growing Your Business by Duplication.