For many small and medium-sized businesses, growth is their primary goal. In pursuit of this goal, however, businesses can often make mistakes that stunt their expansion or harm their businesses. In this blog post, we outline four business expansion mistakes you may be making.
1. Failing to delegate
As the owner of a small business, you may feel responsible for every decision and problem that arises within your business. During a period of growth, however, it is essential you learn to delegate tasks to your employees so you do not burn-out or make rushed decisions due to being overworked. For a business to grow successfully, employees within that company must also grow and accept new responsibilities.
2. Rushed hiring
If your business is rapidly growing, you may panic and hire candidates based off one interview or their CV alone. While on paper a candidate may seem qualified, they may not be the right fit for your company. Never rush a recruitment process as they will only cause more problems for your business in the long-term. If you need extra help quickly, ask a reputable recruitment firm to help you hire interns on a temporary basis and offer them the opportunity to remain with your company if they are a good fit.
3. Expanding too quickly
Should the demand for your business suddenly increase, you may try to expand your business too quickly. To avoid this, you could consider leasing equipment, rather than buying new equipment outright to ensure you are not paying significant upfront costs. If you purchase new equipment outright and then demand for your business decreases, you may find your business in serious financial trouble.
4. Rely on informal agreements
You may begin to expand your business with verbal confirmation from your vendors, manufacturers and business partners that they will support your growth. Many small businesses do not feel as though they have the power to ask or demand legal agreements, and this puts them in an incredibly vulnerable position as they begin to expand. Never trust an informal or verbal agreement with a supplier or third party and ensure you base your growth on legal or formal agreements.
Business expansion mistakes – where to find out more
Visit our business finance page to learn more about the range of business finance solutions we can offer, to help you with your business expansion. Or get in touch to discuss how we can help.
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