Business Management in Adelaide has two broad options for growing your business: doing more of the same or expanding the scope of your business.
When you are operating in one industry, your business strategy defines how you will be competitive and determines the general nature of your products. In this case, business growth can be achieved by increasing your business’ production capacity, and driving demand to capture greater market share for your existing products within your current geographical reach.
Typically, trying to achieve growth by doing more of the same becomes constraining at some point. When you reach the limits of your current operations, the push for further growth often requires you to expand the scope of your business.
When you reach this point, you can extend the scope of your business by expanding:
Horizontally – into new products or customer segments within your current industry or industries; for example, a breakfast cereal food manufacturer and wholesaler might grow by:
- Creating a new blend of breakfast cereal to expand its current line of products
- Taking an existing product that is targeted at the eight to thirteen-year old segment of the market and expanding it into the adult segment.
Vertically – by moving up or down the value chain into your customers’ or suppliers’ businesses; for example, a food manufacturer and wholesaler moving upstream into retailing its finished products, or downstream into growing some of its key inputs.
Geographically – into new regions, either domestically or internationally.
At Fortitude, we specialise in helping owner operated business understand their options and make an appropriate choice by answering the questions:
- What products and services should you produce?
- What businesses should you be in?
- What geographical locations should you operate in?