What are the reasons for Business Expansion?

Reasons for Business Expansion
A business is expanded for several reasons primarily for getting more profits and higher returns for the shareholders. Apart from the monetary considerations, there are several other factors that compel  business to plan expansion and achieve growth.

1. Additional Revenues: The first objective of a business expansion can be the collection of more revenues by adding new customers. The additional revenues of a business lead towards the higher level of profitability of a business. Therefore, the main objective through business expansion comes to a business in the form of additional revenues by serving more customers.
2. Lowering Costs: The economies of scale with lower per unit cost for products are achieved though business expansion. If a business has a plant with 100,000 units capacity and is currently operating at 40,000 so by expanding business, capacity can be enhanced to 80,000 units. This will result in lower per unit cost to the business.
3. Beating the Competitors: Another objective of the business expansion is beating the competitors in the market to attract customers to use our products. The competitors' takes away the market share for business and a successful  business expansion strategy  focuses on re-capturing the lost market share. Once a business beats its competitors in the market, it becomes very  easy for the business to generate higher  revenues and profits form that market.
4.  Satisfying Consumers: Another  factor that plays its role in the business expansion is satisfying   the needs and  wants  of the consumers. if a business  is run by a professional manager then it   must strive to reach that segment of consumers by offering its existing or new products.Once the   consumers  get an idea about the products of a business, they 'desire for using that product. This   strategy helps in achieving the loyalty and trust of  the consumers on the products of the   business.
5.  Research & Innovation: A business can expand by analyzing the market trends and customers   new wants, a business position itself to develop those products. This whole process of knowing   the needs of the consumers results in creation of new products for the consumers which were not   previously available in the market.
6.  Capturing Markets: The business  expansion  results  in capturing new markets for a business   that  brings new  opportunities  for  the business. When a product is offered  by a business in the   new market  for  the first time and no other close competitor is there, it results in bringing the   additional revenues and more customers  to the business that can be translated into generating   higher  profits.