Wouldn’t you agree that running a successful business is the dream of any budding business person? The idea of growing your business even further is the icing on top of an already delicious cake. But then, how will you know when to expand your business?
Expanding your business will give you access to more customers. Also, it gives the ability to bring on new and talented staff and best of all, significantly better profits.
However, growth is not guaranteed and many who try to expand their businesses too quickly often end up failing.
As with any part of business operations, planning, understanding, and confidence are all key to successfully taking your company to the next step.
Here are some signs to look out for that will help you determine whether you’re ready for the next chapter.
You Have Loyal Customers
One of the first things you’ll need to figure out is whether or not your customer base is a loyal one. You need a strong group of return customers who love what you do and what you have to offer.
Not only does this indicate that your business in itself is doing what it should be, but that there is a significant and continuous need for your product or service that won’t go away anytime soon.
This is especially true if your clients are not contracted in. The more a customer returns to your business, the more you can assume that you’re on the right track and delivering the quality service that they’ll demand.
However, it’s important to keep in mind that sudden surges in clients are not the same thing as loyalty. Just because the last month offered you a tremendous leap in numbers doesn’t mean you should start making initial plans to expand the business.
Sudden spikes can disappear just as quickly. Instead, keep an eye on the numbers for months at a time. If you see these numbers steadily increasing and your clients return time after time, then you might just be ready for the growth that you’ve been yearning for.
Your Customers Want You to Grow
Note that because your customers are loyal to you now doesn’t mean they’ll continue to be, should you decide on expanding your business. Some clients prefer the feeling of a smaller business.
They prefer personal interaction with the staff and the knowledge that they’ll be remembered whenever they walk through the door. It’s very possible that expanding your business could turn them off completely.
However, if you find yourself being told by clients, regularly, that it’s time to grow and make improvements, then it might just be time to take that next step.
The goal of your business is to meet customer demands. So if they are demanding for more, then moving your business up will hopefully inspire them to continue their investments with you.
Make sure you involve clients in your plans. They might have strong opinions about certain locations and that which could make your business even better. Giving your client what they want will be key.
That way, when the time comes to make the final preparations, they’ll feel like they’re really a part of something and will want to move right along with you.
You Have A Strong And Dedicated Team
When it comes to running a successful business, the most important thing you can have is a strong and dedicated team. If you don’t have reliable employees currently, then you certainly won’t be able to expand your business successfully.
You should have managers and staff that understand your dreams and goals and are dedicated to helping you actualize them.
Expanding your business will put a lot of stress on those working for you. New systems will need to be figured out and new staff will need to be trained.
Ensure that those you have on board at the moment can handle everything that goes into building your business up.
They need to be able to manage a more significant workload, new demands, and new challenges. More especially, new clients who aren’t necessarily invested in the business like those they’ve become accustomed to.
Consider whether the bulk of your team is made up of individuals you trust to be there by your side in five or ten years. If you are completely confident in their loyalty and dedication, then you should be able to expand your business with little to no concern.
You Have Regular Profits
Before you start making plans to grow, you need to take a good and hard look at your current financial situation. Are you consistently making regular profits? How much are you actually taking in after you’ve paid off all of your bills and taken care of your obligations?
Only when you can see regular and steadily rising profits can you be sure that your business is ready to grow. Just because you’ve had some short-term success doesn’t mean you should think about making moves to grow.
However, please note that if you do have the profits behind and you finally do invest in growth, you’ll start to see even greater income before you know it.
While there might be a significant risk in expanding your business, there can also be a tremendous payoff. When your business grows, the possibility for greater sales comes with it.
So, ensure you take the time to really understand your financial situation. So that you can see if your business is ready for this step or not.
Your Industry Is Thriving
Even if your business is currently booming, and you notice that there’s been a significant negative shift in the industry, choosing to grow might not be the best idea.
You may run the best and most efficient landline phone repair shop, but you can’t consider yourself successful for long when customers no longer purchase that product. Make sure that you take a good and hard look at every part of the industry you’re in.
If everyone is thriving just as well as you are, and things seem to be continuously moving in a positive direction, then expanding your business is certainly something to consider.
However, remember that even if the industry itself isn’t progressing much, you may still be able to grow your business. That is provided you can offer the market something it hasn’t seen before.
If you’re able to offer something that could really stir things up, then the growth to achieve these goals will be an important step. These new products or services might be just what the industry needs to get back up again.
You’re Overcrowded And Overworked
Do you find yourself having to constantly push back customers or lose out on opportunities because you simply don’t have the space necessary to accommodate everyone?
Are you bringing in more clients than your workers are currently able to handle? When you find yourself bursting at the seams with work, then growing into a new space will be a great solution.
If you’ve been dealing with serious demands and little room to handle them for months on end, then you definitely should take your business to the next level.
Growing will allow you to better service the customers you have now. It will also give you the opportunity to bring in new talent.
The new employees and their new ideas will help bring in even more customers. This way, you can really reap the rewards of your business to the fullest extent. The more your business is able to offer, the more successful you’ll be year after year.
It’s always important to remember to stay true to who you are and what you started out to represent. Nevertheless, making progress to take your business to new heights is just as crucial.
You Have The Necessary Funding
To be sure you’re ready to grow, you need to have a thorough and complete understanding of your finances.
You must know exactly how much you’re bringing in and what you need to spend to stay open. You also know how much you currently have available to spend. Growing your business will require a significant amount of money.
You’ll need to find a new physical space and get all the necessary materials stocked up. Also, you’ll need to recruit new staff and pay for all the overhead that goes along with growth.
Additionally, you’ll need to ensure you’re completely prepared economically before you start taking these steps.
However, if you know you’re ready for growth and that building up your business can help you tremendously, then there are alternatives available to you. Stop by a few local banks and ask about their small business loan opportunities.
Borrowing this kind of money helps you to make the progress you need quickly so that you can repay the loan soon.
However, these loans can sometimes come with setbacks, so make sure you read all of the fine print before you settle down and agree to anything.
You Have New Products To Launch
Do you have something new to bring to the table? Can you offer the industry something exciting and unique that it’s never seen before? Are you sure that this product or service can be a real game changer and is sure to be a success?
If so, then making the necessary preparations to grow your business will be necessary. Markets and industries are constantly changing and progressing, it’s that progress that makes the business world thrive.
Therefore, if you can introduce a whole new viable idea to the game, then you can expect your endeavors to be successful.
By offering customers something they need and can’t find elsewhere, you’ll be setting your business apart from the rest. You’d also be giving yourself a leg up on all the competition. This kind of exclusivity will be key to taking your business to the next level.
Make sure you take a look at what your competition is doing before you make any serious investments, though. If both of you come out with the same type of product, you shouldn’t expect the same level of profits.
You See A Growing Need For Your Products
Have you been steadily studying the market and industry and noticed a serious gap that needs to be filled? A key part of being an entrepreneur is finding problems in a given area and offering the perfect solution.
You may have noticed where there’s a need in your industry and believe that you have the solution to it. In that case, you can rest assured knowing that an expansion to accommodate this level of care will be well worth it.
By being able to offer your clients exactly what they need, you’ll be able to push your business to the forefront of the industry. The kind of profit that comes along with this position is astounding.
Apple iPhones are a great example of this. While customers can certainly find cell phones that offer similar capabilities, Apple was able to differentiate itself and take its phones to the next level.
It gave customers something they never knew they needed but suddenly couldn’t live without. Now, Apple is the leading provider of cellular devices and they are seeing profits like no one ever thought possible.
You Have An Established Plan
Since you’ve been able to put your business in a place where growth is even a possibility, it’s a pretty fair assumption that your plans have been pretty successful.
However, now you’ll need to take what you’ve seen and learned in the opening phases of your business and amplify them significantly. This is in order to prepare for the kind of growth that your business needs now.
You need to make sure that you can set specific new goals and reach them, without issue, long before you can start making any significant plans for expansion.
Make sure that you take a look at a wide variety of factors outside of your business. These could be, the current economic situation and industry trends, that could have a serious impact on your business success.
If things aren’t looking great for your customers regarding finances, then now might not be the best time to expand. The more you research and plan, the better off you’ll be in the long run.
You Have The Necessary Systems In Place
Does your business run like a well-oiled machine? Are you absolutely and 100% confident that things will run smoothly even in your absence? Only when you have perfected and established systems can you confidently choose to expand your business.
The right tactics and techniques must be ingrained into your staff. That way, they’d be able to handle the changes and significant rises in sales that come along with business growth?
Ensure your established systems are tested. Also test how well your team can adjust to changes in them, long before you make serious plans for growth. Rushing an expansion can be destructive to a business if they aren’t really ready.
So, it’s absolutely crucial that you develop fully understood and agreed-upon systems ahead of time.
Building a successful business takes a lot more than just hoping and wanting it. You need to put in a tremendous amount of time and dedication to see it thrive.
However, once your business has been established and is seeing significant profits month after month, the desire to grow and see even greater achievements can become an obsession.
It’s important to remember that businesses can appear ready for growth, however, rushing this move can actually end up destroying your business, rather than improving it.
Have a thorough understanding of your business as a whole. This includes your staff, your clients, and the industry itself. With this, you will be able to really make a decision on expanding.
If you can’t get a good read on your business’ position economically, how motivated and loyal your staff is, or what your clients need and look forward to, then expansion can certainly backfire.
Keep all of these tips in mind so that you can make the best decision for your business today.