Methods of Expansion

Methods of Expansion

Small businesses can expand their operations by pursuing any number of avenues.


The most common methods by which small companies increase their business are incremental in character, i.e., increasing product inventory or services rendered without making wholesale changes to facilities or other operational components. But usually, after some period of time, businesses that have the capacity and desire to grow will find that other options should be studied.


Common routes of small business expansion include but not to limit at:

  • Merger and Acquisition - Growth through acquisition of or merger into another existing business (almost always smaller in size) ;
  • Go Public - Public stock offerings;
  • Business Partners - Cooperation with other business entities;
  • Franchise - Offering franchise ownership to other entrepreneurs;
  • Patents - Licensing of intellectual property to third parties;
  • Dealer Agreements - Establishment of business agreements with distributorship and/or dealerships;
  • New Marketing Strategies - Pursuing new marketing routes and new products;
  • New Markets - Stepping into new markets ("US/Canadian Business Expansion into China" or "Chinese Business Expansion into North America");
  • Join Ventures - Joining industry cooperatives to achieve savings in certain common areas of operation, including advertising and purchasing;

Of course, none of the above options should be pursued until the business's ownership has laid the necessary groundwork. However, PBM's Services of Business Expansion Supporting may take you to another one higher level, especially for Small Businesses.


The growth process begins with a honest assessment of strengths and weaknesses. Given those skills, the organization then identifies the key markets or types of future market opportunities the company is likely to capture. This, of course, raises another set of issues about how to best develop the structures and processes that will further enhance the organization's core capabilities. Once these structures and processes are identified and the long range planning completed, the business has a view of where it will be in near future and agreement on key strategies for building future business.

Merger and Acquisition
Go Public
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