Now that your business has started to find its feet, it might be time to start thinking about expansion. But how do you know when your business is ready to take that leap? Here are the four main signs that it’s time to expand your business.
1. Your customers are asking for more
Are your customers or clients asking about other locations or products? Perhaps they’re asking for larger orders than you’re used to fulfilling or they’re asking for services you haven’t thought about providing.
If customers are travelling long distances to reach your store, it could be a good indicator that it’s time for you to open a second location. Or if they’re asking for more from you, consider looking into what else your business could expand into.
2. You notice that you need more space
Whether you operate out of a shopfront, a café, or an office, you might start to notice that things are getting tight. Your waiters might be bumping into each other, your customers might be struggling to socially distance, and your staff’s desks might be pressed up against one another.
This is a sign that you have both the business and the staff to consider moving to a larger building.
3. Your current situation can’t handle the amount of business you’re bringing in
If you have more customers or orders than you can handle with the amount of staff or resources you currently have, you definitely need to consider expanding. This is a clear sign that you need more hands on deck and more resources in the back.
4. You have too much money sitting in your business bank
Of course, you need a safety net for your business. However, we generally recommend the equivalent of two months’ worth of operating expenses as a good guide for a financial safeguard. Any more than this and it should be going into expanding and growing your business.
There’s no point in saving too much money in a business which will only be useful if it’s used to continue your business’ development.
Time to expand your business – find out more
Tower Leasing have supported the investment and growth of over 40,000 SMEs. No matter what your plans are, we have the business finance products in place and the expertise to help you see them through. For more information about business expansion and B2B leasing and finance solutions, visit our Business Finance page, or please get in touch with Tower Leasing to discuss how we may help with your business expansion plans.