For some business owners, expansion can seem like a daunting and stressful task. Becoming too comfortable with your current business set-up can inhibit your chance to grow, which could hinder your profitability. Here are some things to consider if you think it may be time to expand your business.
There are many signs that can show that your business is ready to expand. However, it’s important not to rush into this decision, as this could impact your business negatively. First of all, you should assess whether or not your business has sufficient demand, by monitoring the number of customers you have. A steady flow of customers is essential for business growth, with repeat customers being a good sign that your product or service is satisfactory. A sudden surge in customers may not mean that it is the right time to expand your business, as consistency is more important.
Before you even consider expanding, take a look at your profits. If they look to be steady and perhaps increasing, then expansion may be right at this time. It is more important to look at long-term growth over the short-term, as this will give you a clearer idea of how successful your business has been. If you’re a start-up, perhaps wait until your business name is more established to fully interpret your profits.
You might find that your business is doing very well, to a point where you are struggling to meet the demands of customers. This is the clearest and most obvious sign that it’s time to expand your business
. In this instance, you might consider hiring more employees or buying more space for your business. For example, opening a second shop or office in a different location can ensure that you are meeting the needs of more customers.
Growing your business doesn’t have to involve extortionate costs. A simple way to expand is by improving your current products or services, perhaps based on customer feedback. If for example, you own a physical shop, then selling your products or services online can be a great way to attract more sales. Taking on new staff such as apprentices, or offering new training to your current staff is also an excellent way to expand your business.
Time to expand your business – where to find out more
If you’re wanting to expand your business but find that you need help to fund the expansion, please get in touch. Tower Leasing have supported the investment and growth of over 40,000 SMEs. Find out more about our Business Finance options.