How small entrepreneurs can expand without large investments

While many small business owners struggle to keep a single business standing, others have already understood that diversifying can be the key to growth. The most common mistake is to believe that expanding requires a large initial capital, when in fact, the right strategy is worth more than any investment. Raphael Mattos, entrepreneur, investor and franchise expert, explains how small business owners can multiply their sources of income without compromising the original operation and why anyone who does not learn this logic, risks being left behind.

“Series learning is not a luxury for those who have money left. It is survival for those who want to continue in the game. Those who bet everything on a single business run the risk of seeing years of effort collapse in the face of a crisis, a change in the market or a more innovative competitor. Expanding does not mean opening several companies at the same time, but rather structuring a smart model where one business strengthens the other, creating an ecosystem that feeds back and grows sustainably”, says Mattos.

The owner of a car wash who notices the growing demand for automotive aesthetics can add this service without large investments. The small restaurant that has loyal customers can launch a line of frozen or sell exclusive spices. The barber who understands what his audience consumes can create a brand of male products. The manicure that loyal customers can offer online courses of stretching techniques. The owner of a stationery can aggregate services of fast printing and print on demand. In all these cases, the secret is not to open a new business from scratch, but to take advantage of the clientele and the already existing structure to generate new revenues.

“Every small business owner needs to ask himself a question: am I selling everything my client could buy from me? Many entrepreneurs limit their earnings because they do not realize that the person who already trusts the service or product is willing to consume more. And this is the first step to expand without needing a large investment”, Mattos highlights.

Another essential strategy to undertake in series without taking risks is the decentralization of the operation. Small entrepreneurs who centralize everything in themselves end up becoming the biggest bottleneck of their own growth. To scale, you need to build replicable processes, delegate tasks and create a system where the business works without the owner having to be present all the time. “If your venture depends 100% on you, it is not a business, it is a job disguised”, warns Mattos.

In addition to product and service diversification within the same business, there are opportunities to expand in models such as licensing and simplified franchises. Many small entrepreneurs already have successful operations that could be replicated in other locations, with a much lower investment than imagined.

“The mentality of the small business owner needs to change. Many think that serial entrepreneurship is a millionaire thing, but in fact, it is the small ones who benefit most from this strategy. Those who learn to scale, diversify and structure processes grow sustainably and still protect themselves against crises and fluctuations of the” market, concludes Mattos.