Business expansion or consolidation? which way to go…

^Source

You just made some tangible success from your business, as a matter of fact, you have exceeded your personal expectations when you started, congratulations! Alright I said that too early, but that’s well deserved. You’ve made clever decisions and that is exactly what have brought you and your business thus far. In a world full of challenges, the is very hard to come by.

However, human needs are insatiable; for very ambitious people, there exists no stopping points. Despite your trailblazing success and the huge returns from this, the urge to do even better persists, for some reasons, your present achievements are beginning to look so minimal to you, you wish to do more, as an ambitious entrepreneur, you are already making plans as regards the next stage of your business.

Conquering in a business comes with an enormous amount of confidence, for an entrepreneur seeking to move miles more from his achievements; there are two major decisions: ‘consolidate on current achievements’ or ‘soar through other spheres of business and expansion’. Whichever way this goes, the primary goal is ‘to build an empire’, everyone shares this desire…only when you lack the ambition anyways. But only ambitious entrepreneurs get to this stage.

To consolidate means to continue conquering your environment, with your current success, you find out that you are only dominating your current environment, but still there are many more space for growth in this same environment. Consolidation in this context thus involves reinforcing your business and building a formidable brand to extend your dominance in your environment or in the sector of your business. Extending your business to a new environment or diving in to a new line of business is not the goal at this point, the idea is to get stronger.

^Source

To expand, the entrepreneur attempts to extend his brand to a new environment diversify in terms of location and create a brand average in dominance and reputation but dispersed to many locations. Alternatively, the entrepreneur may decide to dive into other sectors and channel his current profits into building a brand in a relatively different sector.

Expansion and consolidation are unarguably very clever plans, either way, the entrepreneur is poised to make more success if he plans well and makes enough researches to enable him make informed decisions. However, expanding a success but young business could come with some challenges and may pose some threat to the sovereignty of the parent business.

Entrepreneurs feel the urge to expand and build a conglomerate, but not so soon maverick! The first huge success could be impulsive, this may move an entrepreneur to make unguided moves, thing tend to appear easy and he forgets that even very strong brands fail. Taking time to strengthen your brand in your current environment and sector is an essential move to make. Strengthening your brand takes a lot of additional work and time, this enables you extend its dominance before spreading its wings. Best approach; consolidate, then, expand. Expanding a strong is much easier, just like a double-edged sword consolidating your business before expanding it not only makes things easier, it protects the parent brand.