Prefer to talk?
9:00 to 17:30 (Weekdays)

Mistakes to Avoid by Companies During Expansion

Every company starting from scratch begins operating with the prospect of growth.

Maturing from a start-up into an enterprise with branches expanding into various locations, is a dream for all entrepreneurs. From the moment you begin the process of incorporation, expansion remains one of the future goals for your business.

With expansion, comes the risk of failure. Plans may backfire and affect the company adversely. Unfortunately, companies hardly accommodate any room for mistakes. If you are really lucky, mistakes can turn into lessons learned, but that is rarely the case and it could mean the end of your company.

If expansion is on the cards for your business and you are worried about the risk factors that might end up jeopardising your smoothly running company, then don't sweat it, we've compiled some of the common mistakes companies make, in order to help you overcome them.

Improper Management of Finances

Finance is one of the primary things that may fail to go as planned. Right from the time you hire a company formation agent for the incorporation of your company to hiring employees and even during growing your company, cost estimation rarely goes as expected. Unforeseen or 'hidden' costs materialise in the form of computers, desks, chairs, office stationery, bills and so on.

You may have set aside a certain amount for expenses, but don't forget about the 'hidden' costs; it could mean that you would be spending more than you thought. You need to make careful considerations while setting aside a budget for your expansion. It is always better to raise the budget a little higher than you expect to help prepare for these.

Compromising on Talent

Another key mistake that companies make is hiring inexperienced employees for the sake of reducing expenses. Employees are the lifeline of any company, their talent and experience go a long way in affecting company outcomes.

Talent is one of the biggest investments with a promising ROI. The right team can lead your company to success. Therefore, do not let the cost of labour push you into hiring a lesser skilled employee.

Additionally, it is always wise to hire local talent for your expanding company instead of relocating employees with a promotion. This is because local employees often have a sound knowledge of the local market and customer behaviour. This will help propel your company to great heights.

Erratic Customer Acquisition Strategies

Companies do not start generating expected revenue overnight. Money-making strategies take time to start showing an effect after their implementations. One of these strategies involves customer acquisition. How you plan techniques to reach out to customers can make or break your company's future during expansion.

First of all, you need to identify your target audience at the new location. Customer behaviour varies from one location to another. What appeals to the consumers at your company's primary location may not be as intriguing to the potential consumers at other locations. For your company to gain traction, you need to have a flexible marketing strategy in place that can be adapted according to consumer needs.

Apart from that, you also need to keep your competition in mind while implementing such strategies. Focus on building relationships with your target consumers and demonstrating how your products and/or services are going to add value to their lives while solving their problems.

Not Having a Pilot Experiment

Expanding your company is a huge decision. Many things can go wrong and the worst part is, many of these could be unforeseen. Therefore, it is always beneficial to get a peek into the problems that might arise and knowing for a fact whether or not it is the right time to expand. One of the effective ways to determine this is by running a pilot operation, where you can test your expansion before fully committing to it.


Expansion can be a scary time for many companies and especially company owners, but when you can predict potential mistakes than you can put plans in place to combat them.

Recent Blog Posts