Deciding to expand is a huge undertaking for any business owner, so to make sure you set off on the right foot, we’ve put together a list of three of the most common business expansion mistakes companies make.
Hiring inexperienced employees
If you’re planning on expanding your business, you’ll likely want to cut costs where possible. However, it’s essential that you don’t make the mistake of hiring employees that don’t have adequate experience. Your employees are your business’s lifeline and their experience and talent play a significant role in the success of your company. One of the best investments you can make during the business expansion process is in hiring the best talent. With the right team, you can drive your company towards success, even if the cost of labour may be slightly higher.
Improper financial management
During the expansion process, your finances are likely to produce some surprises. Cost estimation rarely goes to plan and hidden and unforeseen costs can come in a variety of different forms, from office stationery and computers to chairs and desks. Even if you have set aside a certain amount of money to cover your expenses, it’s essential that you don’t take hidden costs into account, as you will probably end up spending more money than you initially thought. In order to prepare for any hidden expenses, it’s a good idea to raise your budget slightly higher so that you are covered.
Not carrying out a pilot experiment
Deciding to expand your company is an enormous business decision that can come with many unforeseen risks, no matter how carefully you plan ahead. It is therefore always a good idea to gain some insight into potential issues that might arise to determine whether now is the right time for you to expand. One of the best ways of doing things is by launching a pilot operation, where you can carry out a ‘test run’ of your expansion before completely committing to it.
Business expansion – where to find out more
If you’re looking for financial assistance to help you during your business expansion, get in touch with our team at Tower Leasing today. You can read more about our solutions for business finance here.