When running a company, you will be forced to make major decisions that can make or break your business. Oftentimes, it can result in losses that can ruin the company. However, the best companies don’t become what they are today without taking any risks. One can never predict what could happen, but it is worth a try anyway.
Learning from experience is a great way to expand. If you are interested in growing your business, take a page out of the best company’s books. You can try incorporating them into your own business or use it as inspiration to improve.
Being flexible with hiring
Top companies have hired thousands to millions of employees across the years. Some of the best ones have become more strategic in screening their applicants. Their human resource teams have realized that what is written on paper may not be the full story. Because of this, some of them have become more open-minded in their recruitment.
For instance, they will consider applicants whose degrees do not necessarily relate to the industry or position. CEOs in Fortune 100 companies, as an example, have varied educational backgrounds, including arts degrees. Lloyd Blankfein of Goldman Sachs, who has a History degree, is one example.
However, experiences and the skills learned in a certain field can prove to be useful in numerous job positions. Knowledge in engineering technology, for instance, can work in different sectors because graduates of this degree are known to be good at problem-solving. You can actually use learning and analytics techniques taught in science and math for decision making and business.
Transforming their brand
In the business world, companies often need to adapt, and this can be a difficult process. Some are done on small scales such as changing their marketing strategy, while other companies will do a full rebranding.
It is a risky move because it can cost them their existing customers, but this one way that they can innovate and expand. Often, this is caused by the company losing sales and moving to more modern approaches. This is a systematic process that can even involve changing its target audience.
One company that has successfully done this is Burberry. Despite being around for around 150 years, Burberry was not always considered a luxury product. Their style before was quite old and at some point, it was referred to as gang wear. However, they managed to turn it around with new styles and getting new representatives. Now, they are considered high end and feature celebrities such as Emma Watson.
Tapping international markets
No matter how long a company has been around, its success curve is limited if they only cater to the local market. This is why going international is a huge benefit to growing businesses. Foreign markets have numerous potential, and the large populations in other countries mean a lot of potential.
In the global situation, the United States isn’t the only market available anymore. Countries that were previously ignored are now rapidly becoming huge economies that have a lot of spending potential. For instance, Indonesia has consistently had a five percent GDP growth in the past decade. Those in Asia and South America also have a lot of opportunities.
The shift to going international can be difficult, but it is a rewarding risk. It requires extensive research on the local demographics and the restrictions and regulations for that country. Another important step is securing a brand presence in those areas. If the goal is to create local branches, then it requires numerous processes from government approval to local negotiations.
Partnering with locals
Related to the previous point, collaborating with local companies and businesses can help them expand their reach. This can actually help reduce the risk because you will be sharing costs with those partners.
These partnerships can come in different forms, from franchising to research. Getting access to existing resources can greatly benefit a company. It can reduce the time spent doing research, and you can get a more accurate analysis of the target audience.
An example of a company that has used local partnerships to advance is the case of Mitsubishi Chemical. They worked alongside the University of California to create research, which resulted in more than 100 US patent products. Microsoft also did something similar when they partnered with Delft University of Technology for a new European research lab.
There is no such thing as a method that has a 100 percent success rate. Hesitation is normal, but just remember that the reward may well be worth the risk. At some point, a company will stagnant and without change, they may be left behind by businesses that aren’t afraid of losses.