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Investing in Your Next Business Expansion the Right Way

Oct 19, 2018

Whether you’re expanding your brick and mortar store or diving into the online trend, business expansions can be both risky and exciting at the same time. These expansions ultimately lead to high ROIs, especially when done right.

However, they are not investments to be taken lightly. Business expansion requires focus, research, planning and capital. Here’s how you can determine if your expansion paves the way toward high ROI.

Check the current market trends or attitudes toward your projected direction

Capital expenditures on expansion are intelligent expenditures if they are applied properly. A great deal of research needs to be conducted before taking action. This includes analyzing infrastructure, market trends and the way customers may react to certain changes.

Such an analysis exposes gaps in marketing, communication and operational inefficiencies that could prove costly if left unattended. Market trends typically only prove profitable when they are sustainable. Businesses can avoid costly mistakes that inhibit return on investment by conducting a thorough analysis of the current market position and projected path for the future.

Set aside a marketing budget to promote an expansion

Many businesses make the fatal mistake of failing to properly promote their expansions. Business expansions should be viewed as a rebirth or grand reopening. They need adequate amounts of attention from customers, audiences and stakeholders to be successful.

This also increases the return on investment. Substantial amounts of research and planning go into successful expansions, and effective promotion can help maximize the return. As such, it is important to set aside a reasonable marketing budget specifically to promote the expansion.

Along with the marketing budget, it will also be necessary to have a targeted marketing strategy. This will help not only get people’s attention but gain their support as well.

Keep in mind that ROI can take different forms

A return on investment can often be much more than monetary. One such positive outcome is enhanced agility for the company. Business is often unpredictable, and a financial buffer can offer the flexibility to overcome obstacles and minor complications that will inevitably arise.

Funding business expansions, when done properly, offers inherent sustainability for the future of the company. The enhanced agility that comes from this type of funding allows a business to respond positively to internal and external changes.

Self-sustaining business

Whether online or in a physical location, a self-sustaining business model puts the customer first. With the evolution of the digital marketplace, businesses must be hypersensitive to customers’ needs and preferences. This often means companies must invest in software or product personalization.

One such example is the ongoing trend of user-generated content. It may come in the form of testimonials, content itself or even advertisements. The bottom line is that success cannot be measured solely on current circumstances or even current daily operations.

Business owners must prioritize future growth to maximize efficiency and their return on investment. The most successful businesses are those which are self-sustaining in the most fundamental aspects.

Expansion can also mean investing in existing infrastructure

Investing in existing company infrastructure can be the best way to increase efficiency. This often means giving employees the tools to perform at a higher level. It may be in the form of additional training, upgrades to software or even operational machinery.

Upgrading the digital and physical infrastructure of a business can produce incredible returns that push a company more towards self-sustainability. This type of investment often improves productivity and maximizes company efficiency beyond a level of acceptance. This is the type of ROI that makes an investment intelligent.

Unfortunately, funding for expansions and other opportunities can be cost-prohibitive for many small and medium-sized businesses. Red tape and bank bureaucracy make it next to impossible to secure funding in a timely fashion, if at all.

If your company is in need of capital for expansion or faced with an opportunity with a known return on investment, contact the professionals at Reliant Funding today. We offer funding resources to help elevate your business.


$3,098,641,569 dollars funded