Each and every business is different. What works for one, might not for another. So finding the right time to expand your company will ultimately be your decision. That being said, here are some strong indicators your business is ready to take the next step.
Need More Space
A physical sign you need to expand your business is that you’re running out of room. Whether you’ve hired more staff and need more office space, or are selling more products and need a bigger stock area – you can assess your current location. If you feel like things are getting tight in your current workspace, it’s a positive sign that the business is ready to grow. A secured business loan can help fund your move to a new location, or set up a second site.
Your budget and finances are a vital factor to consider before expanding. Is your business making a consistent profit? Expanding your company won’t be cheap so you need to ensure you can afford to do so. Some choose to put their profits into expansion to increase their income. You need to decide what your company can, and can’t, afford to do.
Your customers offer a lot of insight into the success of your business. If you’ve got a reliable base of regular clients, this shows there is a consistent demand for your product or service. Also, if your current customers are asking to increase your operating hours or have to travel far to reach you, this is a certain sign you can expand. You’ll be meeting the demand in your market. However, you shouldn’t consider growing after a sudden influx of clients. While this is great in the short-term, it may not require long-term action from your company.
It’s not just your customers who are going to impact your expansion decision, but your colleagues. Have you got the right team on board with you? It’s very difficult to build a brand by yourself, and you’ll need people to help you. Your team can help the business grow if they’ve got the right skills and attitude. Everyone you’re working with truly needs to care about the growth of the brand.
It’s a big decision to expand your business and you need to make sure you and the team are ready for it. It will require planning, stable finances, and hard work. Do you have any tips for expanding a business?