With the economy such as it is, it expanding one's business can be a very daunting task. There are many risks involved, and the stakes can get very high for you and your family if your business comes crashing down. However, expanding a business might be just what you need to stay afloat. Oftentimes, small businesses become complacent in their routine and safety and thus miss out on many opportunities for rapid growth.
If you think you're becoming complacent than it's probably a good indicator you need to undertake another venture. Along with that, here are 10 more signs you should think about expanding your business. Let’s check them out.
1. You Don’t Have the Skills
If you don't have the necessary skills to keep up with the daily workings of your business, it's time to start expanding. Hiring new staff and professionals might seem like you're incurring costs from adding people on the payroll, but, instead of thinking of them as a burden, think of them as an investment. Not being able to keep up with the workings of your business is certain to set you back much more than hiring the right people for the job, in the long run, so don't be afraid to open your doors to those who might be willing to work for you.
2. You Don't Have Space
Now that you've got your new employees, space is getting tight, and that’s one of the major signs you need a bigger office. Working from home and inviting your skeleton crew over to work on projects might have worked before, but, with more employees, you need to be more hands-on with your management. You need to bring your people together, and what better way to do this than getting a new office.
The same thing goes for a growing number of customers as well. Not being able to accommodate all your customers and having to turn down business is a bad idea, so investing in a new space that can house your company and serve your customers is very much worthwhile.
3. You Don’t Have the Necessary Tools
Not having the necessary tools and equipment to deal with increased demand is a big issue. Investing in new equipment is always a good idea, and never more so than when you need it. Again, it might come with a big cost upfront, but it is definitely going to pay off in the long run as your business continues to grow and your customer base increases in size.
4. Stagnation = Recline
What did we say about complacency in the intro? Businesses that don’t move forward are moving backward. The ideas and products you used two, three, six months ago might be working for now, but trends change in a flash, and your customers may start to consider you démodé overnight. Improving, expanding and adapting your business to the needs of your customers is an essential strategy for success.
5. You Don’t Have Enough Vehicles
There is a time when customers coming to you isn’t going to cut it; you’re going to have to go to them. Most businesses nowadays feature delivery, and, if you can’t keep up and you’re falling behind on your deliveries, your business is going to suffer and you’ll lose customers. If that’s the case, it might be time to invest in expanding your fleet of vehicles.
Now, of course, this might seem like a big investment, but with a little help from specialized lenders, you can get sizable business car loans with very friendly terms attached very easily.
6. You’re Relying on a Single Large Customer
Now, this is one heck of a recipe for disaster. Many smaller companies rely on what is essentially a golden goose, i.e. a single large customer that provides them with most of their business. If you look over your accounts and find that a big chunk of your money comes from a single source, it's high time you expanded your business and acquired more customers.
7. An Opportunity Arises
Carpe diem is the name of the game. Seizing an opportunity when it arises is the reason big brands are so successful and have so much influence. If a business opportunity presents itself, even if it isn’t in your market niche, it’s always a good idea to consider taking it. Opportunities come and go suddenly, and without warning, and sometimes you need to be ready to take a plunge into the unknown to reel in big prises.
8. You Have Money Sitting in the Bank
If you’re not spending, then you’re not growing, and if you’re not growing, then you’re regressing. Naturally, this doesn’t mean you should empty your account – a certain cash flow must be maintained, and a certain amount of funds need to be set aside to act as a buffer in case of emergency. So, how much money should you keep in reserve? Estimates say about 3 months’ worth. But, if you’ve got more than 3 months' worth of operational expenses sitting in your account than you're not making any money. Consider using the excess funds to grow and expand your business, and take ventures that might turn an even bigger profit for you.
9. You Found the Perfect PMF
PMF (Product-Market Fit) is the essence of good business. If you've got the perfect product for your market niche, jump on it and go for gold. If your product fulfills all your customers' needs, you'll have conjured a perfect storm of impeccable cash flow, rampant growth and customer inflow for your business. But, don't stop there! Use this opportunity not only to jam a foot in the door but to blow it open and create a brand that will last forever.
10. You’re Getting Lots of Customer Referrals
Word-of-mouth marketing is, without a doubt, one of the strongest forms of marketing. Despite lavish marketing campaigns, if a business isn't referred enough by its customers, it will find it difficult to grow. Certain studies say that over 80% of customers are certain to try a company's products or services if a friend or family member has recommended that company to them. And, if you're at the receiving end of all those referrals, then it's time you expanded your business in order to meet the growing demand and increased customer base, and snatch even more customers through shrewdly set up customer referral programs.
And that's pretty much it for our 10 signs you should expand your business. If you recognize any of these signs, then give expansion some thought, and it will seem like a logical thing to do. Until then, cheers!