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When To Expand An Ecommerce Business

Oct 19, 2007
One of the most stressful aspects of business management is learning when to expand the business, and when to create a secondary stream of income. Tackling this the wrong way can leave a business far behind their predicted projections. Handling expansion properly can double and even triple a business within a few months.

There are several ways to expand a business without investing in a partner. There are strengths and weaknesses involved in each, and no one plan is perfect for every business.


One of the current favorites is Leveraging. A business builds one strong stream of revenue until they can maximize and leverage it into capital. This is either done by creating a product that generates massive revenues, or creating a product that can be distributed through wholesale.

Some businesses build two products and market both. One is what their future will be built on. It will become their foundation for success. The other is a viable product, that has excellent prospects, but may not meet the mission statement or provide the opportunities of the first product.

The second product is maximized and promoted, and then sold. The capital earned from the sale is used to take their first product to the next level, or to create another stream of income which supports the first product.

Joint Ventures

Success breeds Success. Like minded people flock together. Both of these statements are true, and both are the foundation of a successful Joint Venture. New business owners often try to buy their way into networking groups or a joint venture network in the hopes of finding a valuable partner. This is almost guaranteed to fail.

The best joint ventures are those who come about naturally. Two businesses that work together eventually form a symbiotic relationship that benefits both. That is why it is important for ecommerce business owners to step outside of their own circle and meet other business owners, not in networks, but through social venues.

A few months visiting forums and someone will start to stand out. Their name will pop up over and over. These are the people to invest time and effort into. They are the ones who will become the best joint venture partners, because they are working to promote their own business, not just sitting back expecting it to grow on its own.


Investing money in the ecommerce world is tricky, mainly because few small business owners understand what they are doing until after they spend their money. The best investment in an Internet business is to invest time into learning. Any mentoring or support venture that will teach a new business owner how to succeed, and solves problems, making life easier for new ventures, is a good investment.

If a business does need to invest money to expand their ecommerce business, then never borrow to invest. If the business owner does not understand cyberspace enough to generate the revenue needed for an expansion, then they do not have the skills needed to invest wisely.


It takes time and careful planning to choose the right method for each business. The decision will be based on the time and financial investment, the risk involved, the time needed, and the expectations. Careful planning, and a good business plan will solve most problems, and help business owners avoid making the wrong choice.
About the Author
Mark Walters is a third generation entrepreneur and author. He offers free training and investing videos designed to speed you towards financial independence at http://www.cashflowinstitute1.com/Articles.html
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