How Lean Manufacturing Principles Can Enhance Your Business Efficiency

Business efficiency needs to be at its highest otherwise things are going to look bleak.  Too many businesses aren’t running to full capacity and are costing them dearly.  However, a lean manufacturing might actually be the way to help boost inefficient businesses.  This is all about focusing on the value rather than money solely.

The following is a very brief but simple lesson of lean manufacturing principles and hopefully they will be useful to you.

Understand What the Customer Believes Is Value

Customers have an idea of value from what they want and what they are ready to pay for also.  If consumers don’t believe your products are worth their time or their needs then they will turn away.  However, it can be quite difficult to get inside the head of a typical customer because everyone has different ideas or opinions of what they want.  You have to understand and figure out what a customer wants.

There is always a reason behind why a person buys a certain type of Smartphone – they want all the nifty features – and the brand name doesn’t come into thinking.  The reason is down to the fact that customers all want and need reliable internet connections and a portable device that will allow them to be free and not tied to one center point.

It’s the features that add the value and not the name; and what you have to do is to find out what adds the value to your product.  Creativeness is always important because before you even attempt to create a product, you have to take the view of the customer and really delve deep and say without a shadow of doubt if the product is something they need.  If not, it’s likely people won’t buy.

Value doesn’t come down to price alone.  Expensive Smartphone’s may be flying off the shelf but so are the less costly ones and its all down to the reliability of the features and the needs of the customer.  Name isn’t always a deciding factor not as long as the product offers what the customer needs.

Create Your Chain of Processing

There are different stages in which a product goes through before, during and after it is created and you need to really know each stage.  Value can be added greatly through the way the products are processed.  Let’s say the assembly of a product wasn’t offered and consumers had to go and construct whatever the item was, it would essentially make the item less value.  However, if the process was reversed and the assembly was created before the customer received the product, there would be more value.

As confusing as it seems, it is very simple.  So many things can add to the value to a product from a customer’s view and something as simple to putting together an item can add a great deal.  Of course, you constantly have to review the process and what is adding or taking away from the value.

Efficiency Comes From the Value Adding Process

When there is a free flowing, flawless process the efficiency of your business can increase greatly.  Usually things are a lot more productive when the value adding phases go without a hitch.  However, it will still be important to take the time to analyze and review the process from time to time.  This will allow you to see which areas are strong and which are lagging behind.

Keep Inventory to the Bare Minimum

You need to still keep records for all sorts of reasons; however, you don’t need to keep things which aren’t necessary.  It isn’t really important to keep old blueprints of production lines when they haven’t been used for years.  However, you should keep what is really necessary and ensure everything is in good order so that when it comes the time to reorder items, it can be a lot simpler to do so.

Always Look To Become Perfect

Unfortunately nothing is perfect in life but you can do your best to come as close to it as humanly possible!  Whenever the employees aren’t involved with the production process, things go wrong because accidents happen and people don’t know what they’re doing.  However having employees involved in almost all areas can be very useful to cut and reduce waste.

Your employees should be aware there is a host of ways to waste products and that of course means money.  Money can be lost when items are damaged in transportation and when items aren’t handled carefully.  Problems can also occur when there is an oversight in the production and more stock is produced than needed or when errors are allowed to happen.

Investing Is Crucial

You really need to consider investing in the business once again in order to actually increase or enhance efficiency.  If you have the capital you can potentially put money into building or adapting the facilities on offer as well as update equipment and implementing new procedures also.  It might seem a little drastic however, at times it is necessary to make changes and sometimes entire restructuring is necessary.  This is the lean.

However, you don’t actually require a great deal of cash to make this a success.  There are lots of lean businesses which are able to see better efficiency; there is a reduction of capital required as well as less staff in certain areas.  You can even stop putting money into certain products which aren’t selling or isn’t generating enough profit.

Planning is of course crucial for success and you need to ensure you plan out carefully before taking any major steps forward.

How Fast Can I Get a Small Business Credit Card?

For thousands of entrepreneurs looking to start up a small business they ask how is it possible to obtain a small business credit card.  Now, small business credit cards are vastly becoming popular and they can be a useful tool for thousands each year.  However, how fast can these cards be issued and are they right for you?

Your Personal Credit Score May Determine Your Eligibility

There is no set waiting time in order for you to obtain your new business credit card.  However, it may all depend on how good your credit score is.  Now, let’s say your credit score was not very good and was lacking then you may be declined.  It is the same with higher credit scores; if yours is in a good position you are more than likely to be eligible.  You must still meet all requirements however but a good credit score is a big step forward.  You don’t in fact need to wait to apply; your business doesn’t need to be established in order to apply for the credit card.

Why You May Not Be Eligible

While most will have a relatively simple time obtaining a small business credit card, many might not if there are issues with finances.  For example if you have no regular income or have no regular employment it may be quite difficult to qualify for the credit card.  It doesn’t matter if you plan to set up a business, you may not still be eligible for the credit.

However, there are some exceptions.  For instance if your partner has a considerable income and is supporting you, you might be eligible.  Also, if you do plan to leave your current job and want a new credit card, you may be best applying for it before leaving.

Some Business Credit Cards Aren’t Covered From Interest Hikes

Business credit cards are of course very popular however, sometimes they are not protected.  This could potentially cause trouble should there be an unexpected rise in interest rates.  You need to take the time to read the fine print and find out what you are actually protected from.

Should You Obtain A Small Business Credit Card?

In all honesty it can be extremely tough to know for sure whether or not a small business credit card is right for you.  However, when you want to make the final decision you need to take the time to understand the pros and cons of obtaining a new credit card and find out if this is right for you.  Remember, this is still a credit card and you need to be fully happy taking out another line of credit but if you are starting up a business, this can be very useful.

Make an informed decision.

How You Can Save Thousands of Dollars through Balance Transfer

Credit cards have vastly become a sought after tool in order to establish credit.  They also allow millions the ability to make purchases and pay them up at a later date.  However, for many they are paying out extra fees due to interest.  As most will understand, credit cards charge a certain amount of interest but if there is a large balance there will be a huge amount of interest.

Interestingly enough there are ways in which you can save thousands each and every year and it is all down to balance transfer.

What Is a Balance Transfer?

First and foremost, a balance transfer is basically when you take a large sum of money or the balance from one credit card and transfer it to another.  However, when you transfer you can transfer to a zero interest credit card.  This can absolutely help millions to save hundreds and hundreds of dollars each and every year, if not thousands of dollars.

A Vicious Cycle

Let’s say for a moment you had a credit card with an APR of 25%; this is one example, credit card change anything from around 13 to 25%, sometimes more, it depends on which creditor you get the card from.  If you were to pay all charges at the end of the month you would be able to avoid interest charges however this isn’t always possible.  There is a reason why credit cards are needed because you cannot afford to pay upfront for an item.  Usually most users end up being charged a lot of interest.

If you aren’t able to pay the entire credit card bill off at the end of the month then interest is charged and a small amount of interest can soon rack up.  You can actually pay back more in interest charges than what the actual item was worth and it really is crazy.  Unfortunately this is a vicious cycle and something many struggle to avoid.  The worst thing is the cycle never ends because people can’t afford to pay back the entire monthly charge at once.

However, when you look to balance transfer you can actually help save a lot of money.  You can transfer a high balance from one credit card to another card.  You have the ability to transfer the money to a card which has a zero interest rate for a certain period of time, say a year; or you could transfer to a lower interest rate.  Either can be good and it allows you the opportunity to repay the money and potentially save thousands as well.

Be warned, there will be a transfer fee however, this isn’t usually extremely large and you still can save.

Which Credit Cards Offer Low Interest Rates

There are actually quite a few big name cards which offer low interest rate cards.  For example you could look at Chase Slate.  Now, this company won’t charge anything for the first two months, (60 days) and offer a zero interest option for the first fifteen months.  This is not only good but can help to save a lot of cash.  Also, you are not going to face any yearly fees and even when you transfer a balance you aren’t going to be charged any interest on the fee.  However you do need to meet certain criteria.

Discover it is also great.  You can have a zero interest option for all new purchases for the first six months you are with them and you don’t pay interest on the balance transfer either for the first eighteen months.  There are also cash back for purchases up to a certain amount.

Saving Is Possible

There are a lot of high interest rate credit cards available and while they may be fine at first, they soon spiral out of control.  When you are faced with a mountain of credit card charges you need to think fast and clearly and consider trying a balance transfer.  It may just save you thousands of dollars.

Enhance Sales by Applying the Right Marketing Mix

Your marketing mix is the key factor when it comes to boosting sales and getting the products out there.  However, you may be fooled into believing that marketing is only about promoting and advertisements.  While these two are major parts of marketing they are only a small fraction and there are many more elements that need to be used.

Most businesses are using the 7P technique.  Though it all can be confusing so what are the 7P’s and how can they be used for your marketing mix?

The Product

The first of 7P’s is the product.  Now, the product doesn’t need to be a physical item, it can be a digital item or a service but it needs to be something people will want or need.  In order to make the product a sought after or high demand item you have to know your market.

It will be important to understand who will actually want to buy the product and whether or not it rivals a competitor or goes beyond it.  Let’s say you had a portable music player you would need to ensure it offered users something more than current devices on the market otherwise it won’t go far.  It is all about knowing the market and where there is a place for this today.

The Price

Setting out a price can be a tricky issue because you have to know what overheads must be covered before you can make a profit.  However, you cannot set a price which is way over the top because people are not going to buy it.  At the same time, you cannot set the prices out extremely cheap either because consumers will start to wonder why the cost is so low.  There is a real issue here because you have to find a middle or common ground in order to make a profit but not overcharge.

To get fair market value, you need to consider the basics – the costs for production, what you value the item at and pricing with competitors.  If you know these you are able to create a great pricing strategy.  For instance you may want to look at the market now and offer a starting price which is fairly low.  More people will be interested to buy in shares and soon you can increase the price ever so slightly.

Your strategy could even take you at a neutral point where you charge the same average value as other competitors.  This could give you a simple way to cover all necessary costs but at the same time earn profits too.

Where Is It’s Place

Knowing where exactly you will sell is crucial.  You technically cannot set up storefront selling electronic devices within a financial area because this isn’t effective.  There may be money floating around but people are very wary of where they shop from and if a store isn’t placed correctly it won’t succeed.  You wouldn’t expect to see a high end restaurant next to a greasy spoon cafe and it’s the same when you want to sell.

You have to decide whether you are going to opt for a physical store or stick to an online business.  Also, you need to know your place within the industry and not just on the high street.  You can offer a great product but if you don’t choose the right place to sell you aren’t going to get far.

Planning Your Promotional Strategy

A crucial part of your marketing mix has to be promotions.  Now this means a variety of things; it covers advertising as well as how you are able to bring a sales team together and what strategies are to be used.  It will be important to understand which route you are going to take when it comes to advertising and how your social media campaign will shape up also.

Will you use flyers to attract customers to a physical store front?  It is these simple things which you have to consider because you need to bring together a strong strategy from start to finish in order to have a clear view of what you want to achieve.  The strategy needs to help promote and get the word out.  You also have to know the market as well as know the right time to make your move.

The People and Their Wants

You want to bring in people to buy the product but you also want to bring together a team to sell.  This means you have to have an idea of what will make a person buy something, whether its impulse or through snazzy advertising.  You also need to motivate the staff to sell because they are just as important as the people buying the items.  If your team isn’t working well you aren’t going to sell sales.

The Process

There needs to be a clear goal as to how the process will work from the drawing board right through to the production and sales pitch.  How do you see the development stage work?  These are the things you must carefully plan out so that if there are any problems down the line, you can adapt to them and make necessary changes.

The Physical Evidence

You need to show why customers should buy the item.  There needs to be some sort of physical evidence to give your item appeal.  Really there is a need for tests to be carried out and market research in order to get an idea of what people want, need and will ultimately buy.  If you can see a strong response to your ideas they may become more profitable later.

You Must Understand What Marketing Mix You Will Use

It doesn’t matter if you are a fan of the 7P’s or are using a completely different marketing idea; you absolutely need to know which direction you are heading in.  If you have no marketing mix or don’t know what yours is then you are in a bad position.  You don’t have anyone there to help you and essentially you are going to have a lot of issues.  Instead, understand what marketing mix is going to work for you and use it correctly.

Do You Know The Difference Between A Credit Score And Credit Report?

Credit scores and credit reports are often mixed up.  It isn’t actually difficult to get the two confused because they are very similar at times.  If you don’t really know much about either of them then they are easily mistaken for one another.

However, there are millions who don’t know the differences between a credit score and a credit report.  As strange as it sounds, its true and yet many struggle to understand the two concepts.  The following is just a few facts you may need to know about your credit report and credit score for the future.

What Is a Credit Report?

As most will know a credit report is basically a detailed report, almost like a record, of all your personal information.  The report contains information such as your name, address, date of birth, social security number, your employment history and even lists the lines of credit you have ever had.  A report can cover almost every section of your personal finances with credit including when the line of credit was opened, how much you had available and your payment history.  These can all help to determine your eligibility for loans.

What Is A Credit Inquiry?

If you were to apply for a loan or even look to take out a line of credit from a department store, the lender would seek a copy of your credit report.  This is really called a credit inquiry, a hard inquiry in fact; and the lender wants to see your history in a sense.  They need to see how often you have had credit extended to you as well as whether or not you are able to repay.  However, be warned every time a lender takes out credit inquiries on your history, it will be shown in your report and remains there for two years.

What Are Credit Scores?

The credit report helps to make up a person’s credit score.  Now, the way in which this works is simply through small percentages.  Percentages are taken from things such as old credit history, new credit history, amounts owed, and your payment history and of course the length of credit history you have established and used to help calculate your credit score.  Usually the score can range from around four hundred to eight hundred though it can be considerably lower if you have a terrible track record or have defaulted on previous loans or debts.

However, the credit score can be used to offer smaller lines of credit.  They are easily used each and every day to obtain things such as televisions, jewelry, and smaller scale items.  The credit score is quite important because if you have a terrible score it means you have a poor credit history and that is bad no matter who you are.

Is Your Credit Score More Important Than Your Report?

In all honesty, both a credit score and a credit report are just as important as the other.  They may have a similar purpose but the way in which they are used is slightly different.  When you are looking to get a line of credit or a revolving line of credit say from a store or obtain a credit card, a credit score will be used.  Credit scores are used in order to determine someone’s eligibility for credit.

However, a credit report is necessary when someone wishes to apply for a mortgage or a large loan.  Lenders want to take a good in-depth look at your credit history and require your report to see how good a candidate for a loan you are.  Every section within your report is closely looked at and checked to ensure you will be eligible for a loan.

Clean Credit Is Always Crucial

However, too many people believe if their credit score is good now, it doesn’t matter what is in their past.  That is far from true because any debts, loans and defaulted credits are all listed on a credit report and remain there for years, seven possibly more.  You may be in a great position today but if there is bad or negative credit within your report it can do a lot of damage.

It will be important to ensure your credit remains healthy or as good a position as possible.  Credit scores are important today as they are tomorrow and every little line of credit will be noted in your credit report.  Remember that before taking out unnecessary loans or co-signing for a friend.

Disciplining Employees Myths And Realities

For most they see discipline as a form of punishment however disciplining employees isn’t just about punishing wrong-doers.  Discipline can be used to almost train a person and allow them to become a better person and have good self control.  Yes, most will hear the word discipline and immediately think of punishment but in reality this isn’t the case.

Here are a few myths that need to be debunked.

Fairness Means Nothing When You Are a Good Boss

You may believe you are a good disciplinarian but if there is no fairness there is no trust.  You cannot simply call things as you see it or believe it because you are treating an employee unfairly and that is never a good sign.  Instead you must learn to look at the incident objectively taking note of all points of view and obtain evidence so that you can come to a fair and frank decision.

Remember when an employee believes he or she has been treated wrongly, it will start to affect their work and performance.  The reason why is simple – they believe you do not have any trust in them and essentially start to lose interest and respect for the job.  However, when there is an incident and you need to be a disciplinarian you need to treat the situation with kid gloves.

You must ensure the employee knows the rules within the workplace as well as be shown some discipline to a certain degree.  Have a sit down with them and talk things over to see why the problem came about and what can be done to avoid a repeat incident.

 Scream and Shout and Be Honest

Another myth that an increasing number of people believe is that when someone annoys them for doing something wrong, it’s OK to shout at them.  However, acting like a child and start screaming and belittling an employee or co-worker is never a good sign.  It is plain rude and in all honesty there will be no discipline.  Remember, discipline isn’t just about punishing someone but keeping self control no matter the situation.

When you start acting like a child it isn’t useful to anyone within the office and others could follow suit.  For example say a model employee saw you berate a colleague one day and you got so angry you could be heard for miles; and then days later when someone annoyed the model employee for doing something wrong, they responded in your manner.  This not only causes friction but essentially cause repeated mayhem because people will follow.  Instead take an employee aside and have a frank talk with them in a calm and professional manner.

Come Down On Employees Who Break Rules Like a Tone of Bricks

There is this old myth that states if someone breaks the rules then its fine to batter them verbally.  However, in reality this is not the right way to deal with discipline.  You are not going the right way about disciplining the employee and in this modern world you have to take a soft approach.  Now, this doesn’t mean you shouldn’t punish the employee but just go about it in a different manner.

Discipline Is Key But Only In the Correct Manner

The bottom line is that discipline is an important part within any business.  Employees who do something wrong and don’t care about what rules they are breaking should be disciplined.  However, it needs to be handled in the right manner otherwise you aren’t seen as a figure of authority but rather a mean and uncaring employer.

Could Your Business Be Making Bigger Profits

It can be extremely tough to find new ways to help increase a business’ profit margins.  You have the option of improving your yearly turnover and if this doesn’t work, you must reduce overall costs.  Neither is actually all that easy to do because there is always someone out there bigger and better than you and sometimes, it just isn’t possible to reduce costs.  However, there are actually a few simple ways to help you make more.

Keep Alert to the Finances

Strangely there are many businesses out there that don’t have a clear view over their finances and are unable to offer an escape route when a financial crisis hits.  If the accounting is good you can see what money is being spent and where.  This means if you ever want to save money you know which area are draining most cash flow and can take steps to reduce it.

Businesses can hire extra staff to keep on top of these things.  This might seem like such an unnecessary expense but it could be worth it in the long run.

What Are Your Expenses And Profits?

You absolutely need to know everything there is to know about the different expenses going out of the business.  What are you spending money on and are they actually necessary?  If you are wasting money on an unnecessary expense then you are taking money away from your profits which is never a good thing.  You could even look at reducing costs by asking manufacturers for better deals or negotiating on prices – there are lots of ways to save money.

Also, you need to be aware of what is making profit and what isn’t.  It seems utterly crazy to continue throwing money into a line of products which are constantly losing money because it won’t ever turn a profit.  However, if you look at the products which aren’t doing well and come up with strategies to help improve their likeability you could turn things around.

Keep Your Staff Happy To Get More from Them

Employees are the cornerstone of almost every business because if they aren’t happy or aren’t working to their full capacity, you are losing money.  What you need to do is help them enjoy their role within the company to boost productivity.  Basically this means every member of staff should be treated differently; no one should be treated better than anyone else just slightly different.

It will be important to set targets for the company and keep a close eye over the employees.  Offer them reviews once every three months to see whether or not they are happy and what can be done to improve the working environment also.  If someone is underperforming you need to find out why; is there a problem in the office or at home?  You also need to have an open door and ensure the staff feels able and willing to come to you should they ever have a problem.

Telecommuting Can Reduce Costs

Telecommuting is actually one of the best options for thousands and it could potentially save you a great deal of money also.  If you don’t need a lot of office space or can afford to let some employees work from home, you can save hundreds each week.  Employees may also be happier to work mostly from home and as long as they work hard there shouldn’t be too many issues to deal with.

Focus On Sale Effort to Increase Profits

Successful salesmen and women can earn the company thousands each year and potentially lose thousands also.  These are the people you rely on for a majority of the sales and it means you must ensure they are fully able to do their job without any problems.  You need to look at what distractions they face and remove them so that they can sell more products.

To help make sales a lot more profitable and the sales people happier, you need to set out monthly goals that are acceptable and realistic.  Setting out a target for each sales rep you know they can’t reach is not only demoralizing but not the way to run a business.  Instead you should look at their monthly sales reports and see when their peaks times are and set out goals they can reach.  This will give them something to aim for and will boost morale and potentially bring in more sales.

It could actually be a good idea to think about offering some bonuses to try and make the sales people work harder.  Of course if there are potential bonuses at the end of each month, people are more than willing to work towards them because everyone needs to earn a little extra to live.  When you take the time to get to know each employee you know what is going to motivate them and can use it to offer good bonuses or incentives.

New clients are just as important as old ones and you must give your sales representatives the time to add to their portfolio.  Yes, it might seem such a waste of time and money to give a sales rep two or three days to get just one new client but it can be good because every new client is more money.  Every sales man and women should be given enough time to work on bringing in new clients as well as ensure their current clients are happy.

You Must Use New Ways to Market the Business

Unfortunately marketing is going to be one of the crucial factors when it comes to being a success and increasing profits too.  Yet there are still many who don’t really give the marketing side too much thought or consideration and it is leaving thousands with very limited profits.  However, it can be very simple to market the business.

First and foremost each and every business requires a website.  There is no argument about it because in this day and age, everyone is online and looking for something.  This is where you can succeed.  You must create a professional website as well as use online advertising tools and even social media to get the word out about you.

Also, don’t be afraid to let the local community know about your business.  Do what you can; attend local meetings, contribute to the community and create some awareness of your presence.  You can actually get the word out about you by being a part of a community or even when you join an organization that helps those in the community.

Lastly, use methods such as weekly newsletter in the post or even electronically.  Most people will open a newsletter and if they like what they see, they will seek to learn more.  However, when you are creating newsletter, try to use something that will entice the people.

Profits, Profits and More Profits

It isn’t always easy to make a profit in business however if you do what you can you could potentially earn a lot more.  You can look at ways in which you can reduce or cut yearly costs or even just contribute to the local community and get the word out a little more.  There are lots of simple ways to help make your business better known and you should consider using them to your advantage.

Business Growth Strategies

Expanding a business can be extremely hard work no matter who you are or what industry you are in.  Unfortunately too many are unprepared for the hard work and fail miserably.  However, when you know simple but effective ways to boost business growth, things can look brighter.

Business Growth Is a Scary Thought

Business growth can be a fantastic thing because businesses can see their profits soar but only when their growth strategies work.  Some find their turnover improves but their profits fall and as strange as it sounds, it happens every year to thousands.  Failure can happen when a poor strategy is used because if it doesn’t help the business grow it effectively is useless.  However, when an effective strategy is put into place the business can see a huge improvement from the turnover to the profits.  This is what you must aim for.

Understand You Must Have a Clear Focus

You may want to try improving everything at once but this isn’t going to be a strategy that works for your business.  It takes serious time to reach a goal and to see real results also and having several strategies at once can prove to be difficult and unrealistic.  Instead you need to focus on one area within the business in order for it to be effective.

Remember, there are going to be some areas within the business which are very profitable and others which aren’t.  If you spend all of your time working on the areas which are constantly underperforming and not bringing in profit, it is a waste of money and time.  The time wasted on unprofitable areas could actually be spent working to improve areas which are profitable or have the potential to be.

Growth Will Cost Money

Every business must be prepared to spend in order to grow.  This can be anything from investing in new equipment or materials or hiring more staff in order to bring it into the modern world.  It will cost money to see a positive growth in a company and it means you must invest.  Investing in the business is important and must be done.

In a sense this is a new chapter and as such you need to look at it as you would when you first started.  You will need to find out what your risks are and assess them as well as understand what you can invest within the company and what you expect in return.  However, you need to be realistic in what you hope to see.  Overstretching is useless because you set yourself up for a major fall.

You can have a wonderful growth strategy in place however if you do not have the finances to back it, you won’t get anywhere.  That is why you need to assess the financial side of things and see what is manageable and possible.

Think Of This as a New Business

When someone wishes to create a business growth strategy it’s important to start from the very beginning and act as though this is a new business adventure.  It can be a solid platform or starting guide for you to get the product idea down on paper and help you conduct all necessary research.  Too many businesses create growth strategies but fail to do the proper research and end up with their ideas in the gutter.

You are launching a new product essentially and to do this you first need to understand the market fully.  It is crucial to get an idea of the competition and who or what your product will be up against; as well as understand the type of audience being targeted.  If a product goes onto the market without what the people want they miss out.

Launching Your Current Business into a New Market

Breaking into a new market is extremely tough especially when you have been so well established in another market for a considerable period of time.  However, launching into a new market is a common growth strategy thousands look at each year.  It has the potential to give the business a real shot in the arm but of course, it isn’t without its risks.

Let’s say you wanted to start selling products globally; this potentially could offer a great turnover however if the shipping costs outweighed the turnover, profits could disappear quickly.  There is potentially a new warehouse to buy and fill with workers and that of course means more money.  You can invest a lot of capital here which can be wonderful but if it doesn’t work out right it could prove to be a total disaster.

When you are looking to launch into a new market with your current product, it is crucial to assess the risks from all areas.  You absolutely must be sure, without a shadow of doubt, this is what people need otherwise it won’t end happily.  It is a big risk however; if the strategy is created correctly then it can be very profitable in every way.

Launching a New Product

There are considerable risks when you wish to use the market you’re currently in to introduce a new product.  There are a lot of costs to worry about including hiring additional staff to deal with the load.   Of course you probably have a current list of clients and customers and this could help you to understand what sort of impact it could have on your business.

When you want to launch a new product in the current market you need to test the product considerably.  This means you have to offer the new product to clients but on a smaller scale so that you can see what sort of growth it brings and whether or not it is too risky to proceed.  This could actually allow you to see whether or not your business growth strategy has the potential to succeed or fail.

Bringing In More People

One of the easiest business growth strategies is to bring in more people to an existing product within the current market.  Now, this is all down to marketing and which marketing methods work.  It should be all about ensuring more people are aware of the product you have and getting the word out about it also.

Consider Franchises and Partnerships

Surprisingly partnerships can be one of the best ways to help boost business growth.  This offers two businesses with a wonderful growth potential with reduced risk and less cost also.  Let’s say you were in the delivery business and you made an offer to a manufacturer that you would deliver all products; you help both yourself and the manufacturer gets their products out.  This could offer up an impressive turnover and a great profit margin also.

Do Your Home for Takeovers and Buy-Ins

Taking over a business can be very simple to do once you get a sizable part of their market shares.  When you have their shares you can in effect take control of that business (even if they are a former competitor).  You have the ability to run the company however you see fit, you could offer up a merger or just look to the client base the business has.  However, if you are going to do this, you need to ensure a takeover is correct for the business and whether or not the same structure will remain the same.

For buy-ins, it is a little different.  You don’t have total control but rather a stake, a share of the company and while you may have only a minor say in its running, you do get whatever profits made.  For a business growth strategy for buy-ins, it is all about risk over reward and how strong the business is now and what the future holds too.  If there is not going to be a sizable return, it is a waste of money.

Take Every Business Strategy with Caution

Growth is such an important part of a business whether you wish to create a partnership with a competitor or just want to boost sales.  However, every strategy devised must be taken with a pinch of salt because even though it looks good on paper, it might not work in practice.  You should approach with caution and if a strategy should fail, you need to look at another one to fall back on.