As an entrepreneur, you are always looking for ways to expand your little empire. However, after Covid-19 hit, you probably put a swift halt to any grand ideas for global expansion.
Now that the dust is beginning to settle and we have a clearer picture about the global economic downturn, is it wise to consider expansion? If your business has struggled to stay afloat, expansion might not be wise at the moment.
Your energies need to go into survival for your venture. However, if your startup is weathering the storm and continuing to go from strength to strength, you can expand during a recession and thrive, rather than survive. Read on to find out how.
Premises
If you are looking to expand the number of orders that you can fulfill, whether this is part of an eBay empire, whether you import ball bearings from the Far East, or whether you design custom made tee shirts, you will need larger premises to stock your goods.
Think about expanding in a more measured way than you would initially. While you may have taken a lease out on a warehouse before coronavirus, now you might want to invest some of your business cash into building your own premises.
You can look into safety steel structures to help craft a bespoke warehouse that is the perfect size for your items.
Global Reach
If you are looking to introduce a product or service into another country other than your home nation, you need to be extra cautious. Any market research you carry out needs to have the added focus of being recession-proof.
While an idea may have worked during more buoyant economic times, this doesn’t mean that people are willing to part with the same amount of cash for the same product range during a pandemic. Use your market research and tailor it effectively.
You may find that you need to shift significantly on the price point. If you produce your own items for sale, this may mean seeking out alternative sources for materials and altering your supply chain to ensure that you can continue to make the same level of profit.
Funding
As you expand, you may need more of a cash injection into your business. Expansion itself isn’t cheap. If you have a bank manager, head to them first to see if you can extend or borrow more with your professional loan. Alternatively, you can head to a business angel and pitch to them with your expansion ideas. Make sure that you have priced everything and that your financial forecasts are accurate. The risk mitigation that you carry out is more important than ever.
Business angels will only part with their cash for projects that they see as money-making. Many will be more risk-averse during these Covid-19 days, so you need to make your pitch irresistible. Get suited and booted, have a haircut, and enthuse your audience with your past successes in an effort to show how much business acumen you possess.
During a pandemic, you may assume that you need to rest on your laurels in a business sense. But, this doesn’t always have to be the case. You can expand your venture during this coronavirus crisis.
- DISCLOSURE – This post has been written by an outside source.
