Is Expansion Really Proof of Business Success?

[Suba]

Business expansion refers to efforts to enlarge a business/company with the aim of increasing business profits, so that business expansion can also be done both internally and externally. Internal expansion such as building new factories, purchasing production machines, opening new branches, while external expansion such as acquisitions, mergers, etc. Expansion also often indicates a larger business scale, the ability to make maximum profits, increasing the number of customers, etc. So in your opinion, is it true that expansion is proof of business success?

 

[Starmix]

Yes, of course, and only millionaires can do it. Others may apply for a bank loan to add up to the capital and it's only be approved if the collateral is sufficient and if the applicant has also a good reputation of his business which might be his collateral.

 

[Kross]

A strategic expansion plan that is well executed is a clear indication that the business has had success.

 

[eLdavis]

No expansion is not the only proof that the business is expanding. Having a regular flow of customers increasing is also a sign your business is expanding. Reaching out to customers outside your state or location is also another sign.

 

[Fidelia]

Expansion is a viable proof of business success. It takes stability at the previous level for a business to be able to stabilize.

 

[Nomad]

No really, a lot of business expand just to show others that they are growing, they also expand in a desperate ope to control the market

 

[arunima25]

Well, in most cases it is indeed an indication of the business doing very well and that's why it is expanding. But not in all cases. Sometimes the business is started by some person who is very rich and can invest in starting it in a huge way in the initial stage only. They also do it as a show off or the pretension that they are doing really well and have a monopoly on the market. This can be a marketing trick by some with good capital to start with.

 

[Springtime]

In most cases, expansion is an indicator of business success. However, in some cases, business expansion does not mean that the business is making good profits. Expansion can be just investment for future growth.

 

[Kera]

It takes greater capacity for a business to expand. I think it is a viable indicator of business success.

 

[King Belieal]

There are some people that just run expansion of business as show off. For such people, their expansion moves is not a sign of success.

 

[Starmix]

Not all expanded businesses show a promising profit. The owner might do it for personal reasons. He might have capital and it is his prerogative. Others expanded their businesses to add more products mostly needed by the customers in the community. It will become like a one-stop shop.

 

[Augusta]

Sure, to a large extent it shows success. No failed business can lead to expansion. it doesn't work that way