Pros Using economies of scale is arguably the biggest competitive benefit of business expansion. You can reduce expenses per unit as you boost production output and make savings in

You should carefully consider the pros and cons of expansion before pursuing business growth

Buying - by receiving discounts for large purchases

overheads - by dividing labor or administrative expenses among a larger output

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  Boost your stock and resources.
  
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  increase sales and revenue
  
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  reach out to new clients or markets
  
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  invest extra funds in your company.
  
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  affecting market price
  
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  lessen external dangers (eg from competition, market or technology changes).
  

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  Lack of cash may lead you to borrow money to cover expansion needs, such as buying new facilities or equipment.
  
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  Increased manufacturing capacity may result in a reduction in quality, which could result in a loss of clients or sales.
  
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  loss of control – as your company expands, you may need to assign management duties or divide the workload among various locations.
  
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  a larger business will require more cash because it will need more employees, space, and equipment.
  
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  higher worker turnover - for example, if employees are given additional work, their morale may decline, their productivity may decline, or they may decide to leave your company.