Eventually nearly all successful franchise business owners in Chennai have to take the decision to expand their business or not to meet prospective growth opportunities. While there are several benefits to grow a business, for doing so you have to perform detailed research and planning.
Let us discusses few problems involved in scaling a business with low investment in Chennai successfully.
Take a Look at the Key Reasons to Scale Your Business:
The key reasons to scale a business is to boost its profitability. The other important reasons to grow a business include the following:-
- Easy access to a larger assortment of financial help from banks and other financial institutions.
- Shifting into new product ranges and widening your customer base.
- Economies of scale.
- Growing geographically to reap full benefit of opportunities in the other locales or relocating the business to a lower cost authority.
- Increased skills to attract extra qualified staff that can further boost the company.
Many successful franchise businesses in Chennai start out as home-based businesses, as it has minimal overhead. But franchise businesses which are in an expansion phase might eventually prefer having a commercial office space for giving their company a more professional look.
Primary Approaches to Scale a Business with Low Investment in Chennai:
1. Increased Sales and Growth Expenses:
Business growth and increased sales often walk parallely. Growth is required to boost sales, but increased sales might not be helpful unless it is visible to the customers that your business is big enough to manage the extra sales volume. The ideal approach is to get the new sales secured before the business expansion. Perform your market research and make a sales prediction for business expansion, considering the prospective amplification in sales tempered with the other factors like outlook for your specific industry, the changeabilities of the business cycle etc. If you are relocating your franchise business to a large distance then, keep in mind that you might lose few of your existing and loyal local customers. Franchise owner must also acquire extra marketing costs to drive your business with low investment in Chennai to your new location.
2. Financial Requirement:
In case you need to make capital investment for scaling your business then, you may need financial help if the business does not have sufficient retained income to cover the costs of business growth. While starting a business, banks and many other financial institutions offer loans on the basis of perceived capability of the customer to repay the loan, but if your business is on strong ground and specifically has a good track record of loan repayment then, it would be very easy to secure debt financing aid. In case your business is integrated or you intend to integrate as part of the business expansion then, you can raise capital through equity financing. Whether you intend to seek debt or equity financing, you will need an updated business plan with the above described cost and sales forecasts that will clearly demonstrate to financiers or investors that expansion will be profitable and in the best long term interests of your business.
3. Qualified Team Requirement:
Ask any business owner in Chennai and they will tell you that one of their primary setbacks with business growth is attaining qualified team. If you are incapable to acquire an experienced team to manage growth then, you might require training new employees. If your entire qualified team is unavailable or business expansion is temporary then, the part-time employees can also fill the gaps.
4. Company Management:
Another problem to consider while scaling a low investment business in Chennai is the increase in management duties and tasks. Handling more clients and supervising extra team will take up more of your time, efforts and energy. Opening extra business locations might be very challenging if your presence is essential for the success of the business. Customers who are in the habit of having your personal attention might get disinclined to create relationships with unknown employees or partners and finding qualified employees to handle other locations might be complex.
Scaling a business with low investment in Chennai can be extremely cost-effective, but also extremely challenging. Before going on board with business expansion, make sure that you perform your research and build up a plan for growth which will minimize risk and maximize the odds of a successful evolution to a bigger company.