Your business is thriving and operating well. At this point many business owners have great ideas and dream to expand their business. Typically, business owners feel they can copy and paste what they did originally and everything will fall into place. After all it worked the first time. The question to really ask is your business ready for expansion, and are you?
Below we have listed some tell-tale signs that it is a good time to expand your business.
Loyal customer base.
Do you have a solid base of repeat customers? If so this is an excellent position to be in. It displays that there is great ongoing demand for your products or services, as well as satisfaction with the quality of what you do or sell.
Customers ask you to grow.
Do customers travel to you? Have customers from different towns asked you to open or set up in their cities? This might be worth exploring. Ensure full market research is carried out in order to weigh up the pros and cons of entering a new market.
Business has been profitable for at least three years.
A new surge in profits is not enough to justify business expansion – this may be temporary or seasonal. Steady profitability is a sign you have a sound business model that can work elsewhere.
You have a solid team
To handle growth, your staff needs to be ready for additional work, new demands and new challenges. You will need employees who can step up and take charge of a new location, a new product line or a big new account. If you’ve got this dream team in place, your chances of successful business expansion improve.
Your industry and/or market is growing
If your industry is expanding, your business likely can, too. Similarly, if you’re catering to a growing market, your odds of successful business expansion are better.
Steady, positive cash flow
You can be selling great amounts of your product or service, but if you’re not getting paid on time or not managing your cash flow wisely, you won’t have the financial foundation you need to fund business expansion. Therefore it is essential to make sure your cash flow is managed well, before your consider expanding.
More business than you can handle
Are you turning away customers or too busy to contact sales leads as the enquires come in? Are you and your team working what seem like 24-hour days? Your products and services are in high demand, this is a key sign that there is the opportunity for business expansion.
You see a need for related products or services
If sales of your initial product or service are strong, it could be time to add to your offerings. For example, if you own a hair salon, you could add related services such as makeup and nail services etc.
You need more space
Sometimes, you just need to expand to a bigger location. If your employees are sitting on top of each other, you’re tripping over boxes stacked in the office and you have to take clients to coffee shops to have a meeting because there’s no room in your office, it’s time to seek a larger space.
Are you in one of these positions? Then it just might be time to expand. It may be worth contacting a member of our team to discuss your options to expand and enter a new market.