Business can be described as the vital organ of the society which has the responsibility of producing goods and services for wants, satisfaction and with the aim of making profit, while not abdicating its social responsibilities.
There are many strategies to adopt to enhance the growth of business organizations. The following should guide business managers and owners:
- Innovation: innovation can be a catalyst to the growth and success of a business. New and innovative ideas can help an organization create dynamic products or improve the existing services. It can also help a business to adapt and expand in the marketplace. To achieve growth through innovation, a business organization through its manager(s) or owners should develop real life ideas, invest in research and development, protect its intellectual property and seek for professional services when the need arises.
- Online Business Expansion: in this 21st century, one major way a business can expand locally and overseas is through the use of information and communication technology (ICT). Here is an online business or selling of products and services online can help a business reach a much wider audience and customer base. This could be done through access to the internet, developing new social media accounts or pages for managing the business (use of Facebook, Twitter, Instagram, Snapchat, etc.). To utilize this strategy, a business firm should secure its website; follow the laws and regulations for online commerce and keep up-to-date electronic financial records.
- Franchising: Once a successful business is established, a firm could consider expand expanding operations by franchising. Wait, what is franchising? Franchising is a way of selling to others the right to run a style of business and sell a product or service for a period of time. There are basically two parties in franchising, each having a certain duties or obligation. The franchisor is the firm that licenses other firms to sell its products or services. The party that is licensed by the franchisor is called the franchisee. Here, the franchisee has an exclusive right to sell the franchisor’s product or services in his or her specific territory. Basically, each franchisee is an independent business owner. However, there must be franchising agreement. A franchising agreement is a contract between the franchisor and the franchisee that spell out the rights and obligations of each party. Furthermore, prospective franchisees must be aware of certain information about the franchisor which includes:
- How long has the present company (franchisor) been in business?
- What is the financial strength and credit rating of the franchisor?
- How selective is the franchisor in choosing franchisee?
- Does the parent company insist that a prospective franchisee visit the home office?
- What is the public image of the Franchisor’s products or services?
- Can there be market, customers and needs for the products/services within the franchise’s territory?
- How far can the franchisor assist the franchisee to grow the business?
- Tender and Contracts: This is a situation of accessing greater opportunities to do business with government and other big organizations. There are a number of government tender opportunities available across the country.
- Export and Import: this is yet another strategy for business growth. A business firm that wants to grow should be able to export its products or services to some other countries where they are needed, and should import some raw materials and equipment from other countries. Growth through expanding market overseas can mean bigger profit and bigger risks. Before exporting, getting information on foreign exchange, political / economic realities, shipping, and customs requirements and Legal issues concerning the foreign country to expect goods / services could be of help. Similarly, being aware of the import permits, quarantine permits, restrictions and treatments on goods before importation can save the organization a lot of time and money.