Expansion and new projects are something that only established businesses venture into. A small or medium enterprise would wish to expand its operations to maximize profits and consolidate market position. On the other hands, larger organizations would add newer projects for diversifying their business portfolios. In such instances too, they need to make an excellent business plan.
You would definitely have genuine reasons for expansion of your small or medium business. Cite these reasons clearly. Speak about the popularity of your products in the existing markets and their demand in areas where you wish to venture. Accurate information about prevailing conditions in these proposed markets is vital for your success and to attract any required funding.
Unless you can cater to the newer markets from your existing facilities, you may require new infrastructure. More so if you intend entering markets that are distant from your head quarters. Required infrastructure may include production units, logistic chains, service channels and representatives. Good studies into these requirements will enable you draw an excellent business plan for expansions.
Business plan for a new project or diversification also need to mention these relevant details.
Writing about how to intend funding the expansion is of course vital. State whether your existing business will fund the expansion. Should you require external financing, be specific about what components of expansion for which you are seeking funds. You may require funding to open a manufacturing unit or office as part of expansion.
As mentioned earlier, new projects are part of diversification by an established enterprise. For example, a skincare major may wish to diversify into food products to cash-in on its reputation.
Hence, mention what your new project is all about and cite exact reasons about why you intend to diversify.
Local companies operating in geographical or business areas where you wish to expand will usually be well established.
Parochial attitudes of populations also decide popularity of a particular brand of product or service as people tend to be loyal to local companies than those with headquarters located far away.
Hence, expansions or new projects can often be stonewalled by these unexpected factors. Include how you intend to circumvent such bias and position yourself in a hitherto unexplored market in your expansion business plan and new projects business plan.
