Eager for Expansion

Growing your landscape business is a constant challenge, and today’s economic climate is making things more challenging than ever. But by exploring expansion options uniquely available during an economic downturn, you may be able to take your business, and your business performance, to new heights.

If you’ve been using the same business growth techniques for some time, here are a few fresh ideas, uniquely suited to current market conditions, which might stimulate some new thinking on how to expand your business.

NO. 1 – ORGANIC GROWTH. Organic growth is the most common form of small business expansion. In today’s economy, consumers are increasingly turning to value over business loyalty. Businesses must examine their relationship with key customers to pinpoint why those customers are, or are not, happy with service levels. Today’s economy may change how consumers perceive your product or service, as their needs regarding price, service levels and other business factors may be influenced by their economic situation.

Transforming this analysis into actionable initiatives takes hard work and forward-thinking business strategies. It’s about keeping customers happy, investing in the business, and selling and marketing aggressively.

NO. 2 – LOCATION EXPANSION. If your business has been based in a single location or region, now may be the time to set up shop in a second location or to expand your service area. This could involve opening a business in a nearby neighborhood or city, or making your services available to a broader geographic audience.

Creating a second location is much less expensive than starting a business from scratch, and it exposes you to many new customers. Expansion enables you to benefit from economies of scale that were previously unavailable, providing additional profit enhancement.

NO. 3 – ACQUIRING COMPETITORS. Some of your competitors are likely struggling in this down economy, and might want to pursue an exit opportunity. Rather than have them sell to a new competitor, you could acquire them and fold their operations into yours.

Since you know the ins and outs of your industry, and their business, you are less likely to overpay for it. You may also have good ideas on how to improve your competitor’s operations. There may also be economies of scale that can allow you to lower your raw materials costs or other business expenses.

NO. 4 – MOVE INTO A RELATED MARKET. Given everything that you’ve done right in your own business, it’s very possible you can apply those strengths to a related field. For example, you might expand your operations to include a nursery. Such a move makes sense; each business can potentially help the other business to do well.

When expanding into related markets, you can start the second business from scratch or acquire an existing business. Acquisitions tend to be faster, less expensive and less risky, but there is something to be said for starting a new business with a clean slate.

Expanding in a related market with complementary products or services will increase your potential customer base, and can likewise revitalize your sales cycle. The larger, more diverse customer base will also put your business in a more desirable position when you’re looking to sell.

In this market, it’s important to keep your eyes and ears open for potential deals that may come down the road. The key is not to rest on your laurels. What you’ve accomplished to date may be impressive, but with a good expansion strategy in place, rest assured that the best is yet to come.