You Know Your Business Is Ready To Expand When…
You should have a sort of sixth sense about your business. You will know pretty much everything related to it, and if you don’t, you’ll always be striving to learn something new. Because at the end of the day, you’re the most important person to your business. You’re the one who it’s going to rely on for the ship to be steered in the right direction, and the more you know, the further you’re going to go. But it’s not always easy to steer your ship in the right direction, especially when in truth, there will be rather a lot of situations that you’re just not sure how to deal with. It could be a new customer complaint, a product not selling, or your marketing not working. When you’ve never come across it before, it’s just a learning curve in the right direction that you will have to go down. But we don’t often go down the right road, and some of the decisions we make as a business can be so wrong, that it goes into administration. Think how many big companies have done it, and now think about how easily it could happen to you. But one grey area people seem to struggle with the most, is when a business should expand, which is what we’re going to touch on today.
What Is Expansion?
First of all, we want to talk about what expansion is. Because the truth is, there are so many different ways that you can expand a business, and so many little steps you will have to follow to make sure you’re not diving in the deep end and ruining things. Expansion is taking your business to the next level, but it doesn’t just mean opening up a new office or shop like many people think it does. It can mean adding new products to your website, selling a new service, taking on a new employee. Sometimes the smaller things that you do really show how your business is progressing, and the smaller ways of progressing really do make it easier. So, think about the areas of your business that might be struggling at the minute. But of course, all of these little moves that you can make will lead to the ultimate expansion, and that’s opening up new offices or stores, because your business is stretched so much so that you need a new area to focus on. It gives your business a certain status in the world that just can’t be beat, and as long as you focus on the management of your business carefully during such expansions, the money should just keep rolling in. Push it too far, and it’s so easy to lose a hell of a lot of money when trying to expand your business so early.
The Key Signs
There are some key signs that you really need to make sure you’re looking out for if you want to expand at the right time, and only when your business is ready. The first is if you feel like you’re always looking for solutions because you have too much to store. Some companies look to things like Tuffa Tanks for their fuel storage when managing a fleet, because keeping it inhouse has become so much easier than having to rely on outside people to do it for them. Some people hire out extra warehouses to store products because the demand is just so high for what’s being made, yet there is nowhere for it to be stored practically. So if you feel like your business is bursting at the seems in terms of storage issues, then you really must be doing something right. Another common sign is if you feel like you’re carrying the weight of the world on your shoulders, yet you have noone to share it with. It’s common knowledge that you aren’t just going to be able to set up a business with tons of employees, you will most likely be a one man band unless you have a partner that you have set up the company with. So when it gets to the point where you feel like there is no end to the jobs you have, it might be time to take on your first employee. You could take them on part time to see how the finances of your business cope first, and then move onto full time. Slowly you will start to need more and more people, because just one employee can improve the productivity of your company so much!
Getting It Right
It’s so important that you get the expansion of your business right, because as we said in the first place, get it wrong and your company could easily be one of the ones that goes into administration. To get it right, we think you should always get the professional opinion of a business advisor. Someone who you know has dealt with situations like this before, and can possibly tell you how your business needs to expand. The hints and tips they will give you really will be incredibly helpful. Of course, you also need to talk to your accountant to find out how much you can afford to spend on the expansion. Whether that be opening up a new office, taking on a new employee, or whatever else you might have to do. The more opinions you have guiding you, the better it’s going to be for you.
The Setbacks You Could Face
Everyone is going to face setbacks, but the most common you will face is when your perfect idea is not so perfect after all. Your finances might not work out, you might have a sudden dip in profit that will bring your business back down, or you might just not be able to piece together the idea that you have in your head. Whatever it may be, you have to try and tackle setbacks head on, because as soon as things start going wrong, it can have such a snowball effect on the way that you run your business!