The decision to expand is a big one for any business. It comes with its own risks but you could also be missing out on increased profits. Here are seven key indicators that it’s time to expand your business.
Customer demand
A business always needs to listen to its customers. If you’re getting comments from those wishing they could order more, or have a similar business closer to home, it’s a great indicator that it’s time to expand. If the customer demand is there, you have little to worry about.
Running out of space
For any business, space is expensive. Whether it is a warehouse, a new shop or an office, expanding means higher costs. If the size of your current space is starting to restrict your business, then it’s time to increase your operation.
Missing opportunities
It’s good to be busy. There can come a point, however, where demand is higher than your supply. If you have order requests you can’t accept or a prime location you’ve missed out on then change needs to happen. It’s time to expand! Expanding would allow your business more flexibility.
Cash-rich
One of the main reasons you can’t expand is if you’re cash poor. Just like opening a business, expanding has its own costs. If you have a good small business cash flow, then you are going to be able to ride the costs of expanding and eventually increase your profits.
A solid workforce
Your SME most likely doesn’t have a lot of employees. A successful expansion needs those loyal workers to help you along the way. People who know your brand and expectations will be able to make your expansion as smooth as possible.
Market forces
There are industries that come and go. If you’re becoming a leader in a thriving industry then you want to take advantage of that. If you know that the industry is going to grow then it makes expansion a lot safer.
The right processes
If you have defined rules, documents and services then it’s going to be a lot easier to expand. With the right processes in place, you’ll be able to easily recreate your business somewhere else. Without this, it would be a lot more difficult.
Time to expand – where to find out more
If you’d like to expand your business, but need help with finance, please get in touch, we can help.
To find out more about the business expansion finance we can help with, please visit our Alternative Finance page.
