When Is Your Biz Ripe For Expansion?
Updated: Mar 19
The following is an article “When Is Your Biz Ripe For Expansion?” by Marc Primo.
Running your own business means you are the captain of your ship. Naturally, we’d all like to think that our ship is sailing in the right direction and affirmation of this would be growth. But in our hurry to become successful entrepreneurs, it can be easy to jump the gun and expand when we aren’t quite ready to do so.
Signs that your business is ready for expansion
Before you take the plunge and grow your business, look out for the following telltale signs that indicate you and your business just might be ready to take things to the next level:
Too many customers — While this might sound like a blessing more than a problem, having more business than you can handle is a sign that it might be time to expand. If you find yourself swamped with customers to the point that you have to turn some away, or no longer have time to respond to leads due to this influx in demand, then consider hiring more staff, expanding your current location, and/or opening a second store.
Stable cash flow — It’s one thing to be selling your product or service in high volume. But doing so will only be in vain if you aren’t getting paid on time or fail to manage your deliverables wisely. Establishing a stable cash flow that is commensurate to your sales is important because not only does it show business and financial acumen on your part, but also equips you with the funds needed for expansion when the time is right.
Dream team staff — Richard Branson believes that employees come before customers; “If you take care of your employees, they will take care of your customers”. Granted that you look after your employees, if you believe that they can be trusted to serve your customers and the business in the long run, then nurture and reward them in such a way that they won’t want to leave you.
Popular demand from customers — Have you had several customers tell you that you should open a store in another neighborhood or that your business would do so well in so and so part of town? If the answer to this is “yes”, then it might time to heed their advice and look into feasibility studies about a second location. Loyal customers are only too happy to share good “finds” with their friends and relatives, so the minute they spread the word about your business, consider it free publicity and thank them for it.
Consistent profitability — This might sound like a no-brainer, but if your business has seen a steady increase in profit for at least two years straight, then clearly it is a sign that you are doing something right. Rather than be content with your initial success, grab the opportunity and strike while the iron is hot.