Traditionally, business owners look to expand their empire’s one of three ways — horizontally, vertically and synergistically. If you’re not already within the business sector, these definitions may be new to you. But, not to worry, we’ll explain.
Horizontal and vertical expansion are the two most common ways to grow a business and are generally applied by executives. Synergistic expansion, on the other hand, is a relatively new trend for business growth and something that up-and-coming entrepreneurs are quickly starting to embrace.
Think of synergistic expansion as adding a business to the one you already operate. If you own a residential painting company and your business is booming, an add-on business — like a Driven Landscapes franchise — could expand your company’s reach even further while providing a unique combined service to your customers.
As a leading, professional landscape company, Driven Landscapes is the perfect addition to your already established business. Think of us as the budding flowers, growing from the deep roots of your business.
If horizontal or vertical expansion is more your style, here’s a brief breakdown on how most businesses utilize the growth strategies.
Horizontal Expansion is when a company broadens its existing business methods by expanding into other locations, adding more stores of the same business, building more outlets for distributions or enlarging a geographical territories.
Vertical Expansion is similar in growth to horizontal expansion, but instead of increasing the presence of a business by adding more territories of the same, companies look to other ways to expand operations within the same supply chain. This could include a retail business venturing into production, or vice versa, but vertical integration always happens on a linear plane — the retailer would not begin selling other products.