Setting the foundations to expand your business

Kevin Petley, Business Growth Advisor at Elephants Child regularly works with businesses in developing plans for expansion. He shares his insights and tips for other business owners looking to grow.

At a glance

• Before pursuing expansion, ensure your business operations are efficient, eliminate single points of failure, and assess if you have the right team in place to support future growth.
• Prioritise keeping your existing clients happy, as loyal customers not only drive referrals but are also more cost-effective to retain than acquiring new ones.
• Research your audience, analyse competitors, and pinpoint market trends, then consider diversifying your channels, refining your brand message, and utilising data-driven campaigns for expansion.

One of the things we often come across when talking to business owners is concerns around how they can take their business to the next level. Especially when they feel they have hit a ceiling in growth potential. This uncertainly often takes them out of their comfort zone. There are several expansion strategies available to businesses dependent on the market and the size of the opportunity.

Start with strong foundations

Before beginning expansion planning with our clients, we focus on the underlying business to ensure its foundations are strong – this is something we recommend to all business owners. This involves eliminating any ‘single points’ of failure, cutting inefficiencies, automating tasks and streamlining processes. Most importantly, we look at the end-to-end operational capabilities, along with people and structure, i.e. do we have the right people in the right roles to support our ambitions? In some cases, reorganising or recruiting in advance of expansion might be required.

Keep existing customers happy

Then focus on your existing customers. Confirm you are offering the best possible service, as loyal and engaged clients are cheaper to retain than seeking new ones and often fuel referrals. It’s important that we don’t take our eye off existing clients as we strive for growth and expansion.

Understand the market and opportunities

With the confidence that we have our house in order, the next step is to understand the market and resulting opportunities. This can be achieved through:

• Researching existing audiences using surveys, feedback, and a wide range of analytics. Don’t underestimate the power of this information.
• Study competitors to understand their strengths and weaknesses, what they are doing well and how can you exploit this. Remember, differentiation should be more than simply being based on price.
• Identify trends and gaps – look for under-served niches or emerging demands.

Based on the potential opportunities you identify, consider the following next steps depending on your budget and your market context:

• Diversify channels – Invest in SEO, PPC, social media, influencer marketing, and email.
• Be clear about your brand and what you stand for, this is particularly important in crowded markets to ensure you standout. A strong and memorable brand builds trust and loyalty.
• Use data-driven campaigns – Track ROI and focus on strategies that bring positive results.

What’s your offer?

When considering your product or service offering, focus on:

• Launching new products and services based on customer feedback or adjacent needs identified through competitor analysis.
• Packaging or bundling services of existing products and services to enhance perceived value and increase average order size. The critical thing to remember is your current clients may not fully understand your full offering unless you have specifically told them.
• Offering subscription or recurring models for more predictable revenue streams and to provide some level of certainty.

Options for expansion

Expansion can also come through a range of areas which are certainly worth consideration, but always subject to market analytics and the level of investment available. These include:

• Expanding the geography of distribution, both UK wide and overseas. Open new locations (if applicable) but target regions with proven demand.
• Go online or omnichannel – sell through your website, online marketplaces, or retail partners.
• Leverage partnerships – collaborate with complementary brands or distributors.
• Franchise or license your model as a low-capital growth strategy.
• Train and upskill your team – internal development beats external hiring long term. You will be surprised how much value can come from your existing staff if they are encouraged to contribute.
• Consider loans or grants, especially if you’re growing infrastructure or hiring.

Manage risks

Due to the unpredictability of the world we operate in, it is vital to manage risk as you grow. Avoid overextending, especially if it strains cashflow or undermines your business culture. Don’t lose sight of what makes your business unique. It is also important to have contingency plans for potential supply chain issues, market shifts, and unexpected competitor moves.

Most importantly review your financials regularly and ensure margins are maintained. Use KPIs to guide decisions, and most importantly avoid gut feelings. As the saying goes: turnover is vanity, but profit is sanity!

Ready to expand your business?

If you’re looking for guidance on how to set the right foundations for your business expansion, get in touch with us today.

We work in conjunction with an extensive network of external growth advisers and SME specialists, such as Elephants Child, who have been carefully selected by St. James’s Place. The services provided by these specialists are separate and distinct to the services carried out by St. James’s Place and include advice on how to grow your business and prepare your business for sale and exit.

Where the opinions of third parties are offered, these may not necessarily reflect those of St. James’s Place.

SJP Approved 25/07/2025