Owning your own business is often thought of as the end-all and be-all of independence. While this is true, opening your business is only the first step. Along with all the consideration that need to be made when owning your own business, it is important to have a growth mindset and know what your next move will be. Here we will explore how to know when to expand your business.
Your Team Is Ready
Whether you have an entire workforce under you or just a few close confidantes, having a prepared and organized team is essential before any expansion can happen. You will need to make sure that everyone in the company is on the same page when it comes to expanding, and that means trusting everyone to do their own jobs along with the new workload. Consider how long the people in your business plan on staying there as well; you don’t want to expand and then have everyone leave immediately afterward.
Your Customers Are Steady and Growing
Expansion should take place only when the growing demand of new customers is continuing, not when it has already peaked. Having regular customers is a cornerstone of a good business, as they will be the ones that help drive your new expansion forward. Repeat customers provide steady income that you can rely on during the transition period, so it is important to take care of them throughout the process.
The Money Is Already There
No one should be considering an expansion because their profits have fallen recently. Expanding is something that should be done because the opportunity and the money are both available to be taken advantage of. Introducing a new product should be built on the back of an already successful product that has taken off and is generating profit.
Your Goals Are Being Met Consistently
The key word here is “consistently.” Setting goals should be a regular practice in your business. A company without goals is only going to flounder and eventually fail. If you set achievable goals and regularly meet them, it might be time to expand the business. You have already proven that both you and the business can reliably achieve goals, therefore setting higher goals should become a priority.
Knowing when to expand your business can be difficult, especially if you are comfortable with where the business already is. Remember to always keep growth in mind in order to avoid stagnation, as this can be the downfall of your business if you are not careful. Stay positive when expanding. You have already proven you can run a business—now you just need to make it bigger!
