The expansion of a company is vital to the success of any organization. We live in a very fast past society where new products and services are being shaped every day. New jobs are being created on a regular basis and different branches are being formed within organizations.
Companies are constantly seeking for new and innovative ways to capture and maintain the attention of potential and current clients. Competition is extremely fierce between seemingly similar companies and business owners seek for ways to brand themselves differently from the others. It would be unwise to remain stagnant without seeking for ways to improve on certain functionalities within an organization. On the other hand, the downfall of a company can also be due to a failure to plan adequately and consider the feasibility of such an expansion. The pros and cons must first be weighed out before a business owner comes to a consensus as to whether it is really worth going forward with such a change.
As a business owner one will face many challenges when trying to grow a business. When growing a business, the target market will also increase substantially. At times international expansion will be developed as well. With such an expansion within the company, there will also be a greater demand for assistance with administrative tasks as well new marketing campaigns and advertising. This would mean a greater need for an increase in staff members. The new employees would need to get paid; therefore, an increase in wages, funds and office space and equipment would also be necessary.
All these expenses would add costs to the company budget and if care is not taken the company may not be able to sustain all the added cost. There is also a good chance that competitors will decrease as a company grows substantially.
The company will move from the level of smaller companies to medium size and eventually larger sized companies. Though the competition would be stronger whiles dealing with bigger establishments the amount of competition would have decreased considerably as few companies usually make it high up in the rankings.
Due to the increase as well as the pressure brought forth, an organization would feel pressured to deliver product or services as rapidly as possible in order to keep up with the bigger companies. What could happen in this event is that a company would then start to deliver a product that is not totally completed which would decrease the quality of the product or service? This unfortunate event could lead to bad internet reputation through negative reviews and customer complaints made online. What is very unfortunate with this predicament is that when this occurs given the fact that the information is out on the internet it is sometimes almost impossible to remove.
Potential clients would then be fearful of going ahead with such a product or service. This unfortunate happening can lead to a decline in current and potential quality of the service and of the company altogether. Extensive research must be made prior to even consider.