As a business achieves stability and consistent financial growth, the head of the company starts to consider having an expansion. Moreover, business expansion is a gateway to plenty of blooming opportunities to further strengthen brand image and generate higher income.
However, according to Samson Quain of Chron, while expansion can fuel development, it also has its own fair share of downsides and drawbacks. This is why it’s vital for every entrepreneur to conduct a careful assessment and plan diligently before proceeding with a course of action.
Below, we’ll focus on the food industry, or to be more precise, the field of catering. If you operate a professional catering business and aims to expand, here are several steps you can follow before taking that big jump.
Continue your education and training
Of course, if you’ve already been running a catering business for years, it’s certain that you do know your way around the kitchen. Furthermore, it’s not exactly a requisite to have further formal culinary training before expanding your business.
However, improving your cooking prowess and learning new skills can be beneficial for your expansion, especially if you’re trying to enter a new niche. Plus, accomplishing even just a short course or training program can give you an edge against your competitors. Not to mention, a certificate is a good marketing tool.
Another area that you should opt to heighten is your business management skills. It’s helpful to know the current trends and state of demand in your industry, as well as some tricks on managing your finances and tax reports more effectively.
Think about infiltrating a new market
If you have been focusing on a specialisation such as catering for weddings, why not consider entering another niche? Conduct initial research so you can determine which areas appear financially promising. For instance, is there a higher demand in your city for catering services for corporate events? Maybe trade shows and launches are becoming prevalent.
Additionally, you can explore other cuisines and add multiple delicacies to your menu. There’s an abundance of foreign cuisines that are immensely popular, such as French, Italian, Chinese and Greek. Making a few alterations and additions in your cooking services can prove to be a fruitful venture later on.
Talk to your suppliers about better pricing options
When you expand, it’s guaranteed that you’ll need a larger quantity of commercial catering equipment, from cooking tools to serving plates and utensils. Thus, you can make this a bargaining chip for getting greater deals. You’ll be purchasing more goods, so it’s likely that you can obtain discounts, especially if you have been coordinating with the same supplier since the start of your business.
However, you may also want to look into working with other suppliers. This especially applies to the case when you’re entering another niche. Thus, there’s a chance that your original supplier doesn’t have all the equipment that you need.
You can also upgrade your main appliances like your cooking stove, oven or commercial refrigerator for newer models that boast of latest technologies and more advanced features. As for the food supplies like meat, natural produce, and dry goods, you should also talk to your suppliers about discounts in exchange for buying their products in bigger bulks.
There’s no question that expanding a business is a promising move. However, before you start opening multiple outlets or do other forms of expansion, you must make sure that your enterprise is indeed ready and your level of knowledge and expertise is adequate.