How to grow and expand your business

In this guide, we will highlight the signs that show when it might be time to expand, discuss the first steps you should take and what options you can explore for financing your business growth. Growth may look and start differently for every business; for a prime example, read our guide on how to grow your window installation business.

When is it time to expand your business?

The first step to expanding your business is identifying if you’re ready. Signs that you are include:

• Sales are continually increasing – If you’re noticing a consistent rise in demand and spikes that aren’t only seasonal, then your business may be ready for growth.
• Your team is stretched – If you or your team are overworked and unable to keep up with demand, then you may be ready to expand the business.
• You’re having to turn away work – If you’re having to decline jobs because you don’t have the capacity, expansion may be able to help you handle the load and bring in more revenue.

If you’re a small business that now feels like it may need an extra member of staff to help with the growing demand, you might want some advice on employing someone for the first time.  

How to grow your business

1. Make a plan and set out goals

Before you move forward with your business expansion, make sure you have a clear, strong business plan. 

You’ll want to identify your strengths and weaknesses and set goals, not only for the next few months but for the upcoming years. You will also need a clear business plan if you’re thinking about approaching lenders or investors, as they will want to see your ideas and targets before they consider investing in the company.

Perhaps you’re thinking of changing from being a sole trader to joining a partnership to help your business, or choosing a new business structure entirely. This is something you will need to plan for and should be stated clearly in your business plan.

2. Do your due diligence 

It’s important to carry out market research with new and existing customers. This allows you to clearly highlight and target potential problems within the business, but also lets you see your strengths and the key reasons why your customers are satisfied. This will ultimately fuel your business plan going forward. 

Your research could come in the form of reviews, comment cards or simply having conversations with your customers during and after completion of the work – determine what they liked about your business and service, and what could be improved. Remember to take any criticism as constructive and reflect on whether there is anything you can implement to improve your service in future.

Customer feedback is a win-win scenario, because while you’re using the comments to build and improve your business, the customer feels heard and is more likely to engage with you should they require your services again.

3. Increase customer retention

When you increase customer retention, you’re building customer loyalty, and that support can make or break a business expansion. A few tips to increase customer retention include:

• Gather feedback from your existing customers, as mentioned above 
• Make sure your customer experience goes above and beyond
• Offer discounts for those who use your services multiple times, or who use several of your services
• Engage with customers and potential customers online
• Keep communication prompt and transparent

 Check out our guide on branding tips to boost your business for some more insights.

4. Network, network, network

This tip is great for getting your business’s brand and name out there to other traders and companies. Increasing your brand visibility can also help you attract new customers. Word-of-mouth marketing can sometimes be just as important as social media and billboards, and going out to network events is one of the best ways to build vital relationships with potential clients and other tradespeople.

5. Expand your products and services 

You may have decided to expand due to your increase in customer attention and needs. If you expand your product range and the services you offer, you should be able to attract different types of customers and give your current customers more options, which will ultimately increase your sales. For example, we have some great tips on how to upskill as an electrician to offer new services.

If you’re looking to grow your business with new staff, employing someone with a slightly different skillset or specialism than yourself or your current team can be beneficial as well. 

6. Secure financing for business growth 

There are a few ways to access extra funding when you’re looking to expand your business, including: 

• Business loans – This is a simple way to increase your capital and perfect for smaller businesses on the rise who need that extra support. Make sure your company is financially stable enough to pay it back comfortably.
• Equity finance – This type of backing involves selling a share of your business in exchange for funding. This is recommended for companies who feel they have done everything they can do alone and require financial help and perhaps outside expertise to help them with their growth. It’s important to assess whether this is right for you as you will be offering up a part of your company in return.
• Government grants – Depending on your business structure and the services you offer, you may be eligible for government grants and certain schemes. Always check online what grants could be available to you.

Customer support and confidence are one of the biggest challenges when it comes to any business. Becoming a registered Which? Trusted Trader gives your company an extra layer of consumer confidence, which can be a major support when you’re ready to expand your business. Join the scheme now and see how Which? can directly impact your company’s growth.