There’ll come a time when you want to make your small business just that little bit larger. When you’ve only been focusing on say, one store site or servicing just one area, then it’s natural that you’ll look to expansion with an air of trepidation. However, let’s put that nervousness to one side for the moment, because growth can be — and should be — exciting, too. If you’re thinking about growth, take a read through our five (5) considerations and put yourself in the best possible position to succeed.
The Why, Where, and How
You might know that you want to grow but aren’t too sure how, where, or even why you want to grow. This is especially true if your growth is largely being fuelled by wanting to make the day-to-day running of your company a little bit more exciting.
First, think of the why. What will be gained from expanding your business? Once you’ve figured that out, you’ll want to look at options for the how and where. This could be opening a new site, offering your services to a new area, going global, or something else.
It cannot be stressed just how important it is that you conduct thorough market research before you commit too much time or money to expanding. If you don’t, you might quickly discover that it wasn’t as good an idea as you thought it was, simply because the demand for what you offer isn’t there.
This is especially important if you’re moving away from your “home territory”, into, say, a neighbouring town. There might already be other companies offering your services there. You would know this – and much more — if you conduct market research.
Evaluating the Costs
The costs of expanding your business won’t be as much as it cost to set up your business in the first place, but the process will be similar, and you will need to have cash on hand to fuel the expansion.
Rather than using the capital you already have, it may be a good idea to get a business advance from a company such as Swift Finance. This will give you the cash you need without compromising the running of your existing business operations.
Can You Handle It?
You might want a new challenge but think carefully about that, because you might think you’ve piled up too much on your plate by trying to juggle too many balls at once. Aside from your own efforts, the expansion will also be dependent on your staff.
You don’t want to spread your company personnel too thin; if you do, the quality of the service you provide might dip, and that’ll be more damaging than a failed expansion.
Whatever you decide to do, it’s important that you start small and test the waters before you make the leap. You’ll have many opportunities to cut your losses and back out if you have this approach; dive in head first, and you’ll have the pressure of having to sink or swim.