5 Signs It’s Time to Expand Your Business
Expanding a business can be a whirlwind of thoughts and emotions. Sure the business is doing great but does that mean it’s time to take on the additional risk of expansion?
What if your sales go down? What if your staff morale declines? What if you don’t have the assets?
These are just a few of the thoughts that go through a small business owner’s mind when considering expanding the business. The fact is there is no defined list, per say, that once you check off the boxes that means it’s time to expand. However, here are some key signs that could ascertain that expansion should be in the future for your business:
Business is Truly Booming
When your business is doing so well that you sell out on a regular basis, can’t always fulfill customer needs, and just are simply getting an overwhelming amount of demand then this is a great sign that your business could be ready to grow! However, to truly understand if your business is in high demand, it will require some tracking. This will determine if your business is truly thriving or if you are simply experiencing a few good months in sales.
Space is Getting Tight
When your space is getting too tight for your staff to get around comfortably and unable to efficiently deliver customer needs, your business is at risk. Consequently, not expanding could actually cause more harm than good.
Space isn’t just for your staff and customers though. When merchandise can’t stay on the shelves it may seem that’s a great problem to have. Yet, if you don’t have sufficient space to have back stock then your business can only do so much with what your space can withstand.
Goals Are Not Only Being Met, But Are Exceeded
Every small business owner should set goals for its business in terms of sales, hired staff, and brand awareness. Let’s say you made it a goal to make $5,000 in a month but are finding you are greatly exceeding that goal, perhaps even more than doubling it. This is showing you that the demand for your business is there and could profit even more with an expansion.
You Have a Solid Team
Do you have an astounding team that helps increase customer loyalty, uphold operation efficiency, and continuously makes an endless effort toward the business’s success? If so, then you have a key ingredient for a successful business expansion. When you have a team who is ready to give it their all and is there for the long-haul, it makes important decisions like expanding easier to tackle. Having such a team makes it apparent that you’ll have the support necessary for such endeavors.
The Cash Flow is There
Even if your business is booming, you’re exceeding your goals and have an all-star team, that doesn’t always mean it’s ready to expand if the cash flow is simply not there. It all may look like things are great from a distance, but if you don’t have the assets and cash flow needed for a business expansion then those preceding accomplishments are simply just that – accomplishments.
Bonus: Create a Growth Plan
Whether your business is just starting out or it’s been established for years, you should always prepare a growth plan. In doing so, the consideration of expansion will not seem as intimidating because you’ve prepared for that moment. As a business owner, you spend countless hours planning and preparing for success through your business plan, marketing strategy and so forth. Why should planning for expansion be an exception to that preparation?
We understand that growing your business is an immense decision to make. Hopefully, after reading these tips you have a better understanding where your business lies in terms of if it is ready to expand.
Think your business has all the signs that it’s time to grow? Then click here to learn more about how Fresno First Bank can help you get started!