“There are multiple ways to expand your business, each with its own pros and cons. Two of the most common ones include adding a new product or service to the mix or introducing existing ones into a different market.

“Expansion normally means more sales and theoretically more profit. However, business owners need to be careful and make sure the company can handle the growth. The quality of the product or service cannot be jeopardised for more volume because customer loyalty could take a huge hit. Likewise, your current staff might get spread too thin handling more sales in a market they have no experience in. New talent who are not yet familiar with your company culture and beliefs may need to be trained right away.

“To be honest, a lot can go wrong with an expansion if there is no solid plan to address issues like the above and many more that are sure to arise. Growing your company too fast can be a double-edged sword. If handled properly, expansion lets the business benefit from various economies of scale and be extremely profitable. On the other hand, too much growth too quickly can cause the company to crash and burn.”

Full Article: Dynamic Business