Signs Your Business is Ready for Expansion
Updated: Nov 14, 2018
Business owners understand that taking risks is essential for business growth. While being a risk-taker (even if by necessity) is a great characteristic to have, all entrepreneurs must be careful when making decisions for the overall health of the business; especially when considering expansion. Some business owners don’t properly gauge when it’s the right time to expand. They’ll do it when business is on a decline in hopes that doing so will increase revenue, but in the end they risk their existing sales. It’s very important to analyze each aspect of your business, in order to help you properly determine risk/reward outcomes. Here are a few signs that your business may be ready to expand:
Strong Revenue Your business should be in a place of stable growth and sales generation. Having strong revenue for at least three years is a key sign that your business is hitting a strong consumer market, and expanding would be beneficial.
Loyal Customers A strong base of consistently returning and loyal customers is key for growth. These customers show that there is a demand for your product and that they prefer your business over your competitors. Having customers that continually come back allow for recurring revenue, making your business more stable. When you have plans to expand, take their suggestions into consideration for things like location, convenience, and pricing options.
Abundant Workload If your business or service is constantly booked or busy, and you and your employee’s calendars are crammed, then it’s time to expand. Hiring more people will allow you to delegate some power and will ultimately bring in more money.
Meeting Goals If your business continuously meets its goals, that means the work you’re putting into your business is paying off. It also means that it's time to set up another set of challenges for yourself. The dedication that you put in is what will make your business become successful.
Solid Team Employees are the backbone of your company. You want to have a strong group of people who have the skills and abilities that align with your company’s growth objectives. When you expand you will have a lot more to manage, so you’ll need to be able to trust these individuals to help out. They will also be the ones responsible for making sure to maintain the company culture that you have.
Industry Is Growing If you continue to provide something in a market that is growing but has not been over-saturated, consider capitalizing while you can. There are ways to expand your business through franchise, partnerships, and licensing.