Include Expansion Plans in Your Business Plan

Your initial business plan may include a projection of anticipated business expansion. You will write this expansion plan in conjunction with your financial projections. You should show that you will be financially prepared for an expansion, even if this requires additional funding or a bank loan.

If you do have plans to expand — and most investors like to see projected growth — be specific in describing which aspects of the business you anticipate expanding while remaining on the conservative side, a strategy always advised when making projections.

For example, you should specify that your plans include growth in the facilities, new products or services, or even a 25 percent increase in the number of employees. In conjunction with your expansion plans, show predictions for market growth to support your need for expansion. If expansion includes an additional location, you would show that new housing in the neighborhood of the additional location will be completed by the time you open your business. Additionally, you need to adjust your marketing plans to promote the new location and revisit your competitive analysis to include the new geographic area.

If you are an established business, by revisiting and updating your business plan on a regular basis, you will see if your original expansion plans are still practical. Or, you may opt to develop new plans to support your expansion. Again, the expansion plans need to tie in closely with other sections of your business plan. Illustrate the business need to justify your expansion plans or explain the premise behind the idea to expand.

Also, while making expansion plans, have a time frame established in which such expansion is expected to commence and conclude. And, finally, remember to consider legal aspects, such as zoning ordinances, which may limit the size of your facility or parking lot from such expansion.