Want to grow your business? Take a peek at these signs to assure survival 6 tell-tale indicators showing you’re ready for business expansion rapid business growth can be a pitfall If you are not ready
Your business started with a great idea. After investing so many resources in getting it up and running, growth is the next thing in your mind. After all, every businessman longs for expansion as it equates to serving more clients and increasing profits. Sometimes, pivoting is also a matter of survival, or you will get crushed by the competition.
However, it is vital to carefully assess your company’s development plans before investing extra money for growth. You must analyze everything, just as you did during the start-up launch. Remember, just because your business is profitable now doesn’t mean you can recklessly expand. Before you make drastic changes, you must determine if you are indeed ready to level up. Take a look at these signs that show you are ready for expansion.
1. Your Customers Ask For It
When your most loyal patrons ask about new store locations, that’s a tell-tale sign. If your clients have to travel far to enjoy your goods and service, you clearly need a new location. Additionally, they clamor for new goods or services because they want to see how you can evolve. Should your clients hint at these things, you can consider expansion. But before you do so, conduct research to ascertain if the new location is viable and if the new products you want to launch are sellable and profitable.
2. Your Current Location is Becoming Cramped
No matter what your niche is, you need ample space to comfortably conduct your daily operations. If your employees no longer have enough work area or your restaurant has a long line outside because it’s always full-seating, expansion must be on your horizon. When your work area becomes too small, consider the following:
- Transfer to a bigger place
- Knockdown walls and expand the building
- Set up a second location.
However, analyze everything and ask yourself if these changes are merely seasonal or lasting. If the expansion can improve your team’s performance and productivity, it makes sense to expand. In the same token, if growth will also lead to better customer service, go ahead and do it. After all, these scenarios mean you can look forward to better profitability.
3. You’re Dealing With So Much Business and Struggle Handling Things
Growth is warranted when you and your team can no longer meet the demands. Do you clock in long hours and constantly hire extra hands? Are you turning away customers because your inventory runs out? Is there a long waitlist? When you’ve got too much business coming in, congratulations. You’ve got the perfect excuse to grow your brand. However, make sure you track the numbers and check for consistency. You must only grow if you are certain that the demand for your brand is real and truly sustainable.
4. You’re Tempted by an Opportunity That You Can't Afford to Pass On
Sometimes, you consider expansion to take advantage of new opportunities. Remember, these don’t last forever, and they can pass you by. To illustrate, when a prime business location opens up, you may need to grab it. The same holds when there’s a supplier sale or a promotion on machinery. When these tempting opportunities knock, you feel compelled to grow your business faster. In cases like this, you may be forced to make a hard and fast decision. Evaluate your numbers or seek a CPA’s help to check for feasibility. If the answer is yes, seize that opportunity!
5. Your Skills Can No Longer Cope With the Rigors of the Business
It would be the perfect time to grow your business when your skills are no longer sufficient to get things done. Fret not, for this is not a sign of decay. In fact, this is part and parcel of the life cycle in any business venture. For example, you’re an excellent chef who does amazing catering. However, you can no longer keep up with the bookkeeping and taxes. In this scenario, you can expand by hiring in-house talent. You also have the option to outsource the work to whoever is qualified. Keep in mind, hiring the right help will allow you to focus your time and effort on what you do best.
6. You’re Now Too Cozy for Comfort
Finally, when you have become too comfortable, you may need to challenge yourself. With business, complacency is a major threat. After all, with the passing of time and markets’ evolution, you can never be stagnant. If you truly want your business to survive, you must be on your toes to avoid slipping backwards. More importantly, you always have to forecast and push ahead. Look into the future and plan for any eventualities.
Final Wrap Up
If expansion is in your mind, give us a call to check your books to see if you are ready. When you’ve got emergency funds, extra money, and stable cash flow, you can confidently take that risk to grow your business and let your money work for you. However, note that expansion takes time, research, work, and investment capital. Don’t just get too caught up with the notion of expansion. You can’t just go on a whim if you want the new phase in your business to survive and thrive.