Business expansion: concentrate on new product development

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The growth of the company is essential for its continuity over time, so understanding the business expansion expenses is key to this process. We tell you this and more tips.

Expanding a business can be a new challenge that involves investing more time, money and effort, however, it is a very good opportunity to grow and increase the income you get from it. 

Below, we will share with you the following strategies that you can implement to successfully take your business to more places.

1. Develop new products

The development of new products in the company’s portfolio is the fundamental basis for business growth.

For this reason, you need to know the customer and their needs very well in order to respond to them with the products offered by the company.

It is essential to have an action plan where the customer segment is at the center. There are 6 steps in the process of generating new products:

  1. Generating ideas: This is the initial part of the process and consists of using internal and external sources to generate novel ideas through strategies such as brainstorming that involve everyone in the company.
  2. Debugging ideas: then, the department in charge must select the most interesting ideas and carry out a study.
  3. Prototyping: When the best ideas are chosen, a few units are produced or a sample of how the product works is made to show to customers.
  4. Product validation: After performing different tests, another test is carried out with people from the segment in order to identify possible improvements and strengths or weaknesses with respect to the competition.
  5. Commercialization: after verifying the relevance of the product, it is put on sale along with the marketing campaigns defined by the company.
  6. Feedback: this is the final step in which the product’s impact on the market and the steps to be taken to optimize results are evaluated.

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2. Increase customer base

This should be one of the main aims of marketing campaigns, but the starting point should be knowing your current customers well.

While there is no defined strategy for all businesses, there are a number of steps you can take to expand your customer base.

  • Use all available channels.
  • Create relevant content associated with the brand.
  • Ask for opinions.
  • Create campaigns to generate leads.
  • Use a CRM system.
  • Roll out a payment gateway on the website.

This is why it is important to know how much it costs to expand a business to know the value of reaching each customer and the price to reach more people.

3. Diversification

Knowing how a business can expand is relevant to identify where it can diversify its portfolio of products and services.

It is a strategy aimed at entering new markets, either geographically or by offering products different from those the company has in the same market.

Diversification broadens the horizons for expanding the business. There are several types of business diversification:

  • Vertical: involves internal activities performed by other market players that can be carried out by the company, such as setting up its own distribution system.
  • Horizontal: seeks to position the products or services offered in other markets, adapting to each one and seeking opportunities for improvement.
  • Conglomerate: this type of diversification includes businesses that are not related to production, but are dedicated, for example, to the commercialization of different types of products.
  • Concentric: refers to the creation of new products in the same company line.

Therefore, diversifying has benefits such as increasing the target audience, improving brand recognition and positioning in new markets to generate higher profits.

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4. Increase brand awareness internationally

Brands that are successful locally are ready to expand and seek markets internationally to increase revenues and recognition.

Therefore, knowing what a business expansion plan is is of great importance in order to carry out this process successfully.

5. Target new markets

Thousands of companies are created every year in Latin America, and to expand, markets are increasing their demand for different types of products and services.

So, knowing how many business development companies there are is complex due to the explosion of digital ventures and businesses.

Even if the business is positioned in the market, digital transformation requires a series of changes in the organization, such as:

  • Having trained professionals.
  • Knowledge of the target audience.
  • Establishing a communication plan so that everyone involved in the process is aware of the brand’s objectives and values.
  • Awareness of trends.
  • Analyzing direct competitors.

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6. Implement a new payment system

The last, but not least, part of this whole process of growth of the organization is to implement a payment gateway that meets the needs of the target.

For some years now, companies of all sizes have been carrying out this process with dedicated professionals, such as PayRetailers.

It is important to improve this step, which is the last step before purchasing. It should be quick and easy, avoiding complications and securing the data in each transaction.

If users enter the company’s website or e-commerce site and encounter errors, delays or failures, they immediately abandon the purchase. Therefore, having a strategic ally is of great importance for the successful implementation of a new payment system.

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Business expansion advantages and disadvantages

Starting a business expansion process can bring great benefits, or it can affect the company if it is not implemented correctly.

That is why it is important to be aware of them before starting a business development plan focused on growth. The advantages of implementing it are:

  • Increased profits and increased productivity.
  • Acquisition of new clients and strategic allies.
  • Obtain state-of-the-art equipment.
  • Possibility of hiring qualified personnel and increasing the number of jobs in the company.

There are also risks involved in this process. The disadvantages of accelerated and incorrect growth are:

  • Increased production and maintenance costs.
  • Lack of personnel for certain tasks.
  • Little connection with the work team.
  • Higher tax costs.
  • Increased environmental impact.

By recognizing all the business expansion expenses that can be incurred as you seek to grow your business, you can have a better context for this process. At PayRetailers we can help you implement a payment gateway according to your customers’ needs.

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