Consider expanding into a new market if you have a range of products or services that has done well locally. Depending on your current setup, that might mean looking for new opportunities in nearby communities, expanding into new provinces or even exporting internationally.
Analyze the market where you’d like to expand before making the leap. What other companies are offering similar products and services? Are there underserved portions of that market? And what is the real estate market and labour like? The cost of real estate is an important component to the cost of doing business in that jurisdiction, and so is the availability of talent.
Consider the tax implications of doing business in a new geography, including the corporate tax rate and the logistics of collecting and remitting sales taxes in a different province or country.
The availability of financing should also factor into the decision to expand. There are several government programs and private financing options that can help you invest in new equipment, R&D, staffing, and other capabilities needed for expansion.
You can sell directly to consumers through e-commerce if you manufacture or distribute consumer products but only ship to retailers and wholesale distributers.
E-commerce offers many retail strategies that allow you to tailor your approach to what best fits your business. You can reach your customers through a company website, app, or social media, for example.
Adding new channels is a good way to reach as many potential customers as possible, but you should be prepared to meet this increased demand by ensuring you have the proper logistics to handle payments, ship your products, handle returns and customer questions. There are also tax considerations when conducting business online in new jurisdictions.
Developing new products and services can help you increase your volume of business with existing customers or reach new pockets of customers within your market—both have the advantage of letting you utilize your established sales and marketing channels. You can also leverage your knowledge of your customer base and current customer needs to develop new offerings that will drive new sales.
You may also be able to tap into government grants to support new product innovation and development. For example, the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program applies to a wide range of expenses.
Acquisitions are another growth strategy to consider if you are interested in gaining market share, adding to your customer base or filling a gap in your market. Further, if you have a bigger share of the market, you’re in a better position to negotiate with larger customers and retailers. Buying another business can also help you add new skills and intellectual property.
An acquisition is a significant undertaking that goes beyond the price of buying another business. You should also factor in what will be needed to integrate a company and consider the tax implications of the sale and subsequent merged businesses.
Marketing is an essential element for driving new growth, and a well-designed marketing strategy will include multiple avenues to reach current customers and new prospects. You have many options for getting your marketing message out and engaging your audience, including your website, social media, email marketing and advertising.
Consider using tools like a customer relationship management (CRM) system to boost your growth strategy. CRMs track customer interactions with your business that allow you to develop tailored marketing offers and communications. Data analytics can highlight areas of success, which is especially important if you’re expanding into a new market or changing your products and services.
If it’s been a while since you’ve reviewed how and where you’re marketing your business, now may be a good time to consider each of these elements and identify where there may be gaps, or opportunities to update and upgrade your marketing game.
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The inform
ation contained herein is intended for general informational purposes only and does not constitute as advice or opinions to be relied upon in relation to any particular circumstance. For more information about this topic, please contact your Grant Thornton advisor. If you do not have an advisor, please contact us. We are happy to help.
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