Expansion is crucial to the longevity of any business, but many Australian companies are afraid of taking this vital step. Is your business suffering from the same problem?
The case for expansion
Although it’s important to avoid over-extending your business and expanding at the risk of damaging your existing business model, it is equally important to consider the potential implications of failing to expand. For a business to thrive and survive, it must always be looking to the future. Businesses that are too static tend to become stagnant and are quickly outpaced by the competition, so it’s essential to always be looking ahead. Expansion can also often lead to innovation, by encouraging you to meet new challenges, employ new staff and be creative with your products and offerings.
Business fears and roadblocks
Despite these potential benefits, many Australian businesses are scared to take the plunge when it comes to expansion. This fear comes from very real concern about the state of the market, which has recently seen small businesses struggling to survive.
A global study from the Global Entrepreneurship Monitor found that Australia has the third-highest entrepreneurial fear of failure, ranking only behind Thailand and South Korea. This fear can be a big obstacle to the success of many of Australia’s most promising industries, including potentially lucrative technology fields – and overcoming it is essential to the economic climate as a whole and critical to business velocity.
You should never pursue expansion if your business can’t legitimately support the change – but without growth, the future can be grim for a struggling company. In Australia, there are a number of government-supported grants and financial schemes that could help you put your financial fears to one side and explore the possibilities for growth. Many other countries have similar schemes, such as the US-based Small Business Administration.
Exploring overseas expansion
Expanding your business overseas can be a wonderful way to tap into new markets and grow your bottom line in a different economic environment. Making use of new technology and valuable services, such as virtual offices, can also help you explore options and take advantage of overseas opportunities without risking a substantial financial investment.