Grow your business too slow and you'll lose potential business. Invest in business expansion too fast and you'll deplete your resources and lose money. Save your business time and money by learning to see the common signs that it's time to expand your business.
You have a healthy cashflow
Profit is important when deciding to grow your business, but it shouldn't be the deciding factor.
A healthy pattern of profit can be misleading. If your company is making a profit and decides to expand, but has not assessed cash flow patterns, your profits could be lost on increased overheads and wages. Profit is desirable but your ability to generate and maintain a regular cashflow is just as important.
Carefully assess both your revenue and your profits. If you have a healthy margin and can see a trajectory of sustainable cashflow and profitability, you could be on the path to grow your business.
You're exceeding your goals
A revealing sign it's time to implement business growth strategies is when demand is higher than supply, but it's important to balance demand with a solid business plan.
Countless pieces of research prove that businesses with goals are more likely to succeed. Before deciding to expand, create a business plan with challenging goals and monitor your plan weekly.
If you're not meeting business goals, it's important to assess why and alter your business plan and processes. If you're surpassing your goals examine why, do more of this, and revaluate future goals. Once you're consistently exceeding company expectations and demand continues to surpass supply, it's time to grow.
Business expansion is not easy. Migrating from a startup or SME to a growing business requires dedication and passion. Carefully consider if you are committed to increased hours, pressure and responsibility.
Think about how you will manage your time and avoid work burnout - an increasing issue for businesses and entrepreneurs. Reflect honestly on commitments outside of work and how they will affect, or support, your dedication to business growth.
If you aren't fully immersed and ready to accept a high-intensity lifestyle avoid growing your company. If you are, back yourself with an excellent team and accept the challenge.
Invest in an excellent team
The perfect business plan and healthy cashflow is useless if you don't have good employees. Before deciding to grow your business evaluate your current team - how engaged they are in their roles, how dedicated they are to the company, how profitable their role is and how their skills benefit the business.
If your employees aren't performing, you need to figure out why and how to change this. According to The Future of Work Institute, companies with high employee engagement have 3.9 times the earnings per share of competitors.
Focus on creating and maintaining an excellent team, they are the most important element in a successful business expansion.
Is technology working for you?
Successful businesses continuously monitor and implement new systems to increase productivity and wellbeing. Before investing in business growth evaluate how efficient your business technologies and systems are.
Helpful questions to ask yourself include: do you have the right systems in place to manage an expansion? Do you have the resources to provide any necessary training? Do you have the physical space for expansion? Do you need to invest in new information systems and technology to enable expansion? Do you have effective communication systems in-place?
After assessing your technology, you might find an investment in IT is what you need to expand the business. Focus on technology that allows your business to scale and your chances of a successful business expansion will increase.
Recruiting the right people is one of the most important elements of business expansion. If you'd like to expand your business with the best talent, Cpl can help.