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  • Everybody'S Salon: Who Can I Turn To?

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    The document provides advice from an expert on whether a salon owner should expand their business or continue as is. If expanding, the owner needs to consider their value proposition, cash flow, market requirements, hiring needs, market studies, and marketing adaptations. Proper planning and financial confidence are important for a successful expansion into new markets.

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    The document provides advice from an expert on whether a salon owner should expand their business or continue as is. If expanding, the owner needs to consider their value proposition, cash flow, market requirements, hiring needs, market studies, and marketing adaptations. Proper planning and financial confidence are important for a successful expansion into new markets.

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    440 views3 pages

    Everybody'S Salon: Who Can I Turn To?

    Uploaded by

    Princess Silence
    The document provides advice from an expert on whether a salon owner should expand their business or continue as is. If expanding, the owner needs to consider their value proposition, cash flow, market requirements, hiring needs, market studies, and marketing adaptations. Proper planning and financial confidence are important for a successful expansion into new markets.

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    © All Rights Reserved
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    of 3

    EVERYBODY’S SALON: WHO CAN I TURN TO?

    Questions:

    1. For you, continue with the expansion or just continue the current business? Why?
     Personally, I would continue with the expansion because development is a symbol
    of progress for many businesses. It opens up new possibilities, attracts more
    customers, and increases sales. Expansion may also give the impression that the
    company is more financially viable. Larger companies are also seen as more
    trustworthy and stable than their smaller competitors by financial institutions.

    2. If given the chance to help, what advice will you give to Miss Tamayo?
     Most companies face a small problem at some stage, and that is whether or not to
    grow. If you attempt to grow too fast, you can find yourself unable to satisfy can
    demand, which can damage your credibility. However, if you decide not to
    expand right now, your rivals can move ahead of you and capture the ground you
    were eyeing.

    Miss Tamayo will need a strong base to keep her company from collapsing. This
    can be done in a variety of ways.
    1) She has to figure out what their value proposition is – whether their
    offerings are innovative and valuable in their target markets.
    2) Cash flow – Since expansion can be costly, she must ensure that she can
    afford it while still making a profit. She can finance the expansion in a
    variety of ways. She may, for example, seek additional funding from
    investors or invest her own profits.
    3) Examine the requirements – Coming up with a plan of action can be
    extremely beneficial at this stage. She should think about how she’s
    going to expand, how it'll take shape, and what she wants to accomplish
    with this plan. She should also set aside a certain amount of time for this
    expansion; otherwise, she will find herself spending much more time
    than necessary.
    4) Make plans to hire more people – She has to think about this ahead of
    time so she can plan for the hiring of new workers and paying their
    salaries. Alternatively, she might consider recruiting freelancers to help
    with some of the extra responsibilities. While this is a smart idea in
    many situations, she must consider whether these workers would be
    useful to her long term.
    5) Carry out market study – Although she may have the financial means
    to grow, she must consider whether she has a sufficient share of the
    market to do so. To find out, she must conduct market research to
    determine if there are sufficient customers to justify an expansion.
    6) Marketing Adaptations – She must consider how to draw customers to
    certain areas of her market. She has to adapt her marketing to suit a
    variety of markets. It entails figuring out where her clients are and how
    to get in touch with them. These modifications should have been
    considered during the planning stage, so she knows how much to
    increase the marketing budget. This is also a good time to see if her
    rivals are entering these markets as well. If they are, she may want to
    reconsider her options.

    When it comes to expanding her company, she has a lot to think about. However, if she can
    adequately plan her expansion and is confident in her financial outlook, there is no reason why
    she can't move on with her expansion plans.

    Growing a business in a new market can be a frightening, but exciting, process with numerous
    financial rewards. When going through the acquisition process, it's important to have faith that
    all will work out.
    REFERENCES:

    Question 1

    Should I grow my business? Advantages and disadvantages of growing your business. (n.d.). NI
    Business Info. Retrieved from: https://www.nibusinessinfo.co.uk/content/advantages-and-
    disadvantages-growing-your-business?
    fbclid=IwAR3xaDjPzVOxnHmtvEJ8VjWy1XNtchCoMBNS90YEUsxC2mRMq0isiR4N6ts

    Quain, S. (2018, November 8). The Advantages eof Expanding Business. Chron. Retrieved from:
    https://smallbusiness.chron.com/advantages-expanding-business-21144.html

    Question 2

    7 Things to Consider When Expanding Your Business. (2018, November 14). StrategyDriven.
    Retrieved from: https://www.strategydriven.com/2018/11/14/7-things-to-consider-when-
    expanding-your-business/

    Carr, R. (2009, June). Five Things to Consider When Expanding Your Company. Entrepreneur's
    Organizaiton. Retrieved from: https://www.eonetwork.org/octane-magazine/june-
    2009/fivethingstoconsiderwhenexpandingyourcompany

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