Tool Box
Issue No. 17 - June/July 2004
Growing beyond borders
Considering the right time to expand
by Max Franchitto
Most businesses which one would class as medium sized (turnover greater than $1m) may be considering expansion into markets beyond state borders. There are also those others that have to consider interstate markets not just as part of their growth strategy, but also as a priority for survival.
It is a researched fact that 43% of small to medium-sized businesses fail in the first three years of their existence. The other critical time for these businesses is when they realise that they are no longer a small business but in fact a hybrid with big business.
It is at this time that such a businesses begin to explore the marketing potential beyond their local or primary market. Once this exploration begins the business faces the challenge of competing with a greater range of competitors and maybe getting the impression of not belonging in the bigger economic picture.
Research shows that many businesses seeking expansion fail to prepare for the challenges ahead and soon meet up with a degree of difficulty that may discourage their expansion plans.
It is recommended that some basic behaviours be applied when considering expansion, they are:
- Patience
- Persistence
- Consistency
- Discipline
- Talent (People)
These behaviours need to apply to the business expansion strategy, which should include a carefully documented:
- Marketing plan
- Market research
- Distribution channel strategy and alliances....
