Why expand your business

Mergers and acquisitions are a fast track to growth. You can shave years off of creating products and entering new markets. And gain expertise. The combined companies will have synergies for higher profits. I tell people to give me a dollar. And they do it. So, how do I get strangers to hand me money? Here are five things that went into crafting that ask. The IRS announced new mileage rates for Understanding how the alternative minimum tax AMT is calculated helps you avoid paying this tax or figure out strategies to reduce the amount.

A Car Allowance can add up over the year but is a car allowance taxable income on your tax return? If depends on what records your company keeps. When you use the actual expense method you also get to deduct an amount each year to account for depreciation, This guide can help. Minimum wage for the state of Florida changes every year to adjust for inflation.

Check here to understand the rules governing minimum wage in Floriday. Larger businesses can often get bulk discounts and better supplier credit terms, meaning costs are driven down and profits increased. A larger turnover can also mean a greater potential for profit. With the profit margin improvements that economies of scale can provide, many growing businesses see their profits increase alongside their operations.

Expansion or investment is often undertaken to combat narrowing margins or falling sales. One of the most effective ways of boosting sales can be entering the export market, and there is plenty of information available on government websites to help. Finding the right people to help you run your business is crucial, and a challenge for many business owners.

Growing businesses tend to attract the best people. The opportunities and challenges that a successful, growing company can provide for their staff make them very attractive. Being a part of a growing business is often an invigorating and professionally fulfilling experience. Also, once your business has reached the point where you are delegating management and operational decisions to others, the business no longer has to depend on you. This allows you more time to dedicate to personal pursuits.

Many business thrive on continued growth and expansion, or at least require it to remain competitive. Others do not. Things can get complicated. With growth comes more financial obligations to both the business and your team.

The danger is that you may hire people and buy fixed assets, then not increase your revenue to meet your increased cost obligations. There is also the risk of too much cash being tied up. Possibly in the greater amount of stock required on hand to fulfil the increases in demand that your growth creates. Higher sales numbers will be required to bring the cash coming in. There is also the risk inherent in approaching new markets, locations, or expanding your product or service range.

You may find that your product or company culture is simply not suited to the audience. The costs involved in attempting this growth make failure a huge risk for relatively smaller businesses. Economies of scale also play a part here. While there are plenty of fantastic reasons to expand internationally, there are also drawbacks.

Every country has its own employment laws to contend with — which can be daunting for even the savviest businesses and a major obstacle to expansion across borders. This is why many companies choose to engage a Global PEO when expanding internationally. Get in touch with TopSource Worldwide today to take the first step of your global expansion journey.

Gain a competitive edge Expanding abroad allows you to get out of an oversaturated market — helping to reduce the effects of tight competition. Opportunity to diversify Keeping your business in the domestic market can limit profit potential and leave you exposed to market changes. New team members One of the biggest advantages of expanding is the opportunity to hire newly qualified team members.

Wider customer base Business expansion has the potential to expose your products and services to a broader audience. Funding opportunities Successfully expanding your business can put it in a positive position for gaining necessary funds.

Potential relocation Expansion may present you with the chance to relocate your business to another area, across the state, or even internationally. About the Author: 9East Marketing. Established in , 9East Marketing Services has assisted many businesses from a range of industries to achieve great success. Related Posts.