# 4 questions to consider before embarking on a contract packaging expansion
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-10-13
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Top Questions Businesses Must Ask Before Growing: WePack MD Insights
Meta Description: Find out the key questions businesses should ask themselves before embarking on a growth journey. Discover insights from Mick Clark, Managing Director of
URL: https://financedigest.com/4-questions-to-consider-before-embarking-on-a-contract-packaging-expansionhtml

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_By_ **_Mick Clark,_** _Managing Director,_ [_WePack Ltd_](http://www.we-pack.co.uk/)

[Statistics](https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx) show approximately 65 percent of new companies fail during their first 10 years.

In the cut-throat world of business, companies need to keep expanding to survive. With [65 percent](https://www.investopedia.com/financial-edge/1010/top-6-reasons-new-businesses-fail.aspx) of new businesses failing in the first 10 years across most industries, having a clear vision of growth is important from the outset.

However, scaling your business before it is truly ready is a sure way of drying up resources, both financial and physical, creating unsustainable growth that could be potentially business-ending.

Despite the difficulties brought about by the pandemic, [WePack](https://www.we-pack.co.uk/) still enjoyed a 26 percent growth in 2020 thanks to its careful approach to expansion.

To ensure other companies also enjoy a smooth and successful approach, I’ve compiled my top questions businesses must ask themselves before beginning their growth journey.

**#1 What areas do you want to grow?**

When looking to expand your business, it can be easy to be over-ambitious and be too broad in your vision for strategic growth. But channeling your focus on the exact areas you want to see positive development can help you better results.

There are many [ways you may want to grow your business](https://www.financedigest.com/5-simple-ways-in-which-your-business-can-save-water.html "5 simple ways in which your business can save water"), from the addition of new products or services, to seeing marked growth in revenue.

This [targeted growth area will differ between organisations and it can be tricky to figure out which should take priority for the betterment of your business](https://www.financedigest.com/julius-baer-2022-profits-fall-as-it-hits-business-cycle-targets.html "Julius Baer 2022 profits fall as it hits business cycle targets"). For example, you may want to initially focus on customer acquisition before beginning to consider increasing your workforce or expanding into different locations.

It may be that your growth plan incorporates more than one initiative but [tackling these in the wrong order and without a firm](https://www.financedigest.com/how-can-financial-firms-tackle-the-challenges-that-lie-ahead-in-2021.html "How can financial firms tackle the challenges that lie ahead in 2021?") strategy in place could be detrimental to growth. So, it’s important you [keep your overall goals for the company](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split") in mind and always have a solid plan you can rely on.

**#2 Should increasing headcount be a priority?**

Hiring is often [considered one of the most challenging](https://www.financedigest.com/5-things-to-consider-when-choosing-a-challenger-bank.html "5 Things to Consider When Choosing a Challenger Bank") aspects of business management and finding the right people for your team can make or break a business. You should consider your employees your biggest asset, so it’s vital you have a [strong hiring strategy when recruiting](https://www.financedigest.com/aldi-uk-to-recruit-6000-after-strong-christmas-trading.html "Aldi UK to recruit 6,000 after strong Christmas trading") for your business expansion.

Keep in mind your vision of future growth and your long-term goals for your brand and [don’t be afraid of changes to structures if they benefit the business](https://www.financedigest.com/pitiless-machines-will-kill-your-business-if-you-dont-respond-now-warns-servion.html "‘Pitiless machines’ will kill your business if you don’t respond now, warns Servion"). Restructures can sometimes be disruptive, but if you’re in the [process of expanding](https://www.financedigest.com/processed-meat-market-in-gcc-to-expand-with-a-cagr-of-8-4-during-2016-2024-2.html "Processed Meat Market in GCC to Expand with a CAGR of 8.4% during 2016-2024"), a reshuffle can be just what you need to promote growth.

WePack recently [hired several production leads to oversee each of the business’](https://www.financedigest.com/reasons-why-you-should-hire-a-business-broker-to-sell-your-business.html "Reasons Why You Should Hire a Business Broker to Sell Your Business") packaging silos – bagging, food, re-working of products and liquid filling – instead of having one person in charge of all areas. This helps drive a smoother process overall.

But before you consider a restructure or even begin hiring, you should set realistic [targets that align with your recruitment](https://www.financedigest.com/britains-halfords-targets-retirees-in-recruitment-drive.html "Britain’s Halfords targets retirees in recruitment drive") needs – being overly optimistic or hiring at a pace that’s too fast for your growth will only result in redundancies and low company morale. Instead, set [priorities for which jobs need to be filled quickly and be considerate of recruitment costs](https://www.financedigest.com/malaysias-new-pm-anwar-says-first-priority-is-cost-of-living.html "Malaysia’s new PM Anwar says first priority is cost of living").

And remember not to neglect your current employees. Staff will need adequate training to adjust to new processes and [deal with demands](https://www.financedigest.com/oil-drops-on-oversupply-fears-after-saudi-uae-deal-lagging-u-s-demand.html "Oil drops on oversupply fears after Saudi-UAE deal, lagging U.S. demand") effectively. Embrace digital communication, particularly if part of your workforce is [working remotely](https://www.financedigest.com/how-to-protect-your-employees-mental-health-while-remote-working.html "How to protect your employees’ mental health while remote working"), and encourage e-learning where possible.

**#3 Have you conducted industry research?**

The saying ‘you shouldn’t compare yourself to others’ doesn’t apply in business; knowing where you stand in your field is crucial to getting ahead and improving your [business model](https://www.financedigest.com/7-factors-to-consider-before-your-business-moves-to-a-subscription-model.html "7 Factors to Consider Before Your Business Moves to a Subscription Model").

Conducting market research can not only help you identify new customers, get to grips with your competitors and assess [brand awareness](https://www.financedigest.com/sap-boosts-brand-awareness-using-gumgums-high-impact-ad-formats-and-veritytm-gumgums-advanced-contextual-targeting-solution.html "SAP boosts brand awareness using GumGum’s high impact ad formats and VerityTM, GumGum’s advanced contextual targeting solution"), it can also identify whether your desired expansion is both necessary and feasible.

Going [global is often seen as the most impressive marker of growth](https://www.financedigest.com/global-splined-sleeves-market-size-share-trend-growth-forecast-to-2031.html "Global Splined Sleeves Market Size, Share, Trend & Growth Forecast To 2031"), but even expanding your current premises can have a significant impact on your capacity for development. WePack recently increased its production floor area by 40 percent by adding a mezzanine floor to its premises to increase production capacity.

Whether you’re looking to expand your business overseas or at home, you’ll first want to make certain the [market can accommodate your business](https://www.financedigest.com/how-businesses-can-effectively-pivot-marketing-game-plans-for-christmas-2020.html "How businesses can effectively pivot marketing game plans for Christmas 2020") before taking the plunge.

Consider first whether the market is already saturated with other competitors in your desired new location or whether there is enough demand to justify the [costs of ramping](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") up production.

To get this information, you should dig into existing industry research, or you can create your own by conducting surveys and [focus groups](https://www.financedigest.com/pizza-group-dp-eurasia-sharpens-turkish-focus-as-russia-risk-high.html "Pizza group DP Eurasia sharpens Turkish focus as Russia risk high") with current and potential customers.

**#4 How do you spot new opportunities?**

[Businesses need to keep evolving to stay relevant and be successful](https://www.financedigest.com/acca-sets-out-magnificent-seven-attributes-vital-to-success-in-modern-business.html "ACCA Sets Out ‘Magnificent Seven’ Attributes Vital to Success in Modern Business"). One such [way you can do this is by keeping an eye out for new opportunities for expanding your product](https://www.financedigest.com/5-ways-to-sustain-productivity-when-the-clocks-go-back.html "5 ways to sustain productivity when the clocks go back") line and the services you already offer.

Listening to your [customers is not only important for gaining trust](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition"), but it can also help you obtain insight into your customers’ wants. Take advantage of surveys and reviews to assess any [gaps you may be able to fill](https://www.financedigest.com/analysis-energy-hungry-europe-cant-look-to-u-s-shale-to-fill-any-opec-gap.html "Analysis-Energy hungry Europe can’t look to U.S. shale to fill any OPEC gap") with additional products or services.

Social media is also a handy free tool that businesses can use to listen to their customers, watch competitors, and keep on [top of industry trends](https://www.financedigest.com/top-5-payment-trends-for-2016.html "TOP 5 PAYMENT TRENDS FOR 2016") as they happen to meet the needs of their key demographic.

For example, sustainability in packaging is quickly becoming an expectation among consumers, with [85 percent](https://www.greenpeace.org.uk/wp-content/uploads/2021/05/Trashed-Greenpeace-plastics-report-final.pdf) wanting the government to hold retailers responsible for reducing plastic packaging.

[Companies can capitalise on this trend](https://www.financedigest.com/generic-oncology-drugs-market-2021-global-leading-companies-analysis-revenue-trends-and-forecasts-2027.html "Generic Oncology Drugs Market 2021 Global Leading Companies Analysis, Revenue, Trends and Forecasts 2027") by offering customers more sustainable solutions, benefiting the environment while boosting the brand’s eco-credentials.


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