In general, “business expansion” means that a business is attempting to broaden its customer base in an effort to increase sales. While this is true, there are other ways for businesses to expand, such as:
• Selling more products
• Offering a more diverse selection
• Changing product focus
• Changing the business’ concept
If your business is in an expansion, Fisher Law Office can help you abide by your state’s regulations. As your business grows, you have a greater responsibility to provide the public with safe services and products.
A planned expansion happens when you and your management team make a plan to expand your business’ activities. In some instances, a planned expansion is necessary to avoid financial losses when the market takes an unexpected downturn. Every business’ expansion plan is different, but can be based on a variety of actions such as:
• Bringing new products to market
• Starting a franchise or chain
• Takeovers, acquisitions and mergers
• Selling products in foreign markets
A planned expansion is a major effort, often comparable to starting the business from the ground up. There’s one notable difference, though; your planning team has a base to begin from. You’ll need a business lawyer to help you comply with your state’s laws on takeovers and acquisitions.
In an unexpected growth phase, companies can get more business than they expected, meaning more profit and a potential need for rapid adaptability. For most businesses, these “surprises” can be a source of concern. For instance, a smaller business may not have enough cash flow to handle the uptick in orders. Such growth can lead to more bills, and in rare cases, can lead to bankruptcy. Some business owners opt not to expand when confronted with unexpected growth; when you are in the startup phase, you should consider what you’ll do if your business grows unexpectedly.
Hiring a Lawyer for Business Expansion Help
A lawyer can help you draw up a business plan, and he or she can help you ensure that your company is ready for future growth.