If you’ve successfully set up your own little business and it’s doing well that you’ve started to think that now might be a good time to expand it, you shouldn’t be so hasty. Growing your business might be a great idea, but there are some things that you should absolutely take into consideration before you do so…
Can You Afford It?
Expanding your business isn’t free. You’ll likely have to invest in more infrastructure, more stock, extra employees and maybe even a new office. You’ll need to hire office movers to help you safely transfer your stuff to some place with more square footage, and you might even have to step up your marketing efforts too. Can you really afford all of that?
Are You Generating Revenue or Profit?
While we’re on the subject of money, it makes very little sense to start expanding your business when you’re making a decent revenue, but very little profit because that means that your business might have some way to go. If you’re actually generating a decent profit, after all, is said and done, then expansion probably does make sense because you will be able to start making more money, which is what business is all about. Revenue is nice, but attempting an expansion when your profit yield is low is madness.
Are You Meeting Your Targets
If you’re not meeting your targets now, with your business at the size it is, then it may not be the optimum time for you to think about expansion. Even if your business is in good standing and it is naturally growing, trying to push an expansion when you’re falling short in some areas doesn’t really make sense.
It might be better in such circumstances to invest more time and energy into meeting your goals. If you do this, natural growth is likely to occur, and then you’ll be in a good place to expand should you still wish to do so.
Is Your Company Scalable?
It seems obvious, but so many small business owners don’t stop to think about whether their company is actually scalable before they try to do so! This is essential because not all businesses are built for growth. For example, if the costs of expanding, some of which were outline above, are greater than the cost of organic growth, or are likely to take a very long time to break even, then sticking with your current mode of operation is most likely to work out for you.
Are You Easily Findable Online?
If you have websites, social media accounts and blogs that are all perfectly search engine optimized both locally, nationally and even internationally, if you wish to sell there, then you are undoubtedly in a better position to expand than if your websites and various other online efforts barely get any traffic at all. The fact is, the future of business, or the getting customers part of it, anyway, is online and if your online presence is poor, it’s probably worth spending more time and money on that right now.
Is Your Team Onboard
You employees are one of the most important parts of your business, so it really is important that, if you want to expand, you have their full support. After all, trying to expand will not only mean that they might have to work harder and do more for a while, but it is also taking a risk with their jobs, and if your staff are unhappy with the change, productivity might drop, and you might fail.
Do You Really Want to Do It?
If you’re thinking about expanding simply because you think it’s what you should do, and because you’d like to make more money, that’s fair enough, but it probably isn’t enough to make it worth your while. If you want that, and you want to expand because you love your work and everything it entails, from long nights trying to solve problems to quotas, data handling and dealing with employees, then go ahead, you really do want it and as long as you know what you’re doing, it probably won’t be seen as a mistake in your eyes, come what may.
Before you go ahead and start planning for expansion, do take the time to think about these issues seriously. Your mind might be set on building something bigger and better, but that might not happen if the time isn’t right for whatever reason. If it is, then great, if not, you can start making improvements and then re-evaluate in the future. Good luck!
And I thought the last one expiring on my thirtieth was scary!
I only remember that it needed to be renewed TODAY because I was filling in the spot on my most recent job application “yes, I have a current NSW driver’s licence” oh wait, better renew that, it expires Sunday and I have no time to do it tomorrow!
It was the fastest trip ever to the RTA, though! 1:30pm on a Thursday, at Warners Bay. Took a ticket, got called straight away, didn’t even have to do the eye test! Woo! (I’m WAY overdue for an optometrist review, but don’t tell anyone)
I can write May off as a dumb month without a computer and with too much illness.
It’s winter. I can officially complain about it being cold.
Job applications are due. June 11. Now that I have my computer back I can write these sorts of things after hours. Like this weekend I can polish it up while we have a long weekend
Job apps will also mean job interviews. Blah! Gotta practice with my current and former supervisors
I can start anew a little at work. Did a mass of note-writing and stats on Friday, which means starting with a cleanish slate for May. Still not caught up on reports and programs, but I now have time and a stress-free brain which may be able to tackle those.
It’s half-way through term, which means only 5 more weeks til school hols :p Yes that means more work to do before then, but think I’ll get up to Sydney for part work (there’s a workshop I wanna go to) and part break (while Rish is at his own conference :p)…. though Queensland sounds more appealing right this minute. My nose is cold!