You can’t simply wake up one day and decide to expand your business. You have to have the foundation for it. But, the question is – how can you know that it’s time to expand your business? Here are some indicators that can help you make your decision.
Your profits are consistently high – it’s time to expand your business
This is the most important indicator that it might be a good idea to expand your business. If you’ve had consistent profits for at least three years, then your choice is simple. But, before you make the final decision, of course, you should analyze your sales for the last few years. You already know how to start a business, but expansion takes a bit more preparation.
So, take a look at your finances. If there’s no dependency on seasons, and if your business has been booming for some time, then go for it! However, you have to be careful. If you’re basing your decision on a single surge in sales, that is not enough to help your business grow. You want consistency; that is, you need steadiness in business to be able to expand it.
You have a (loyal) customer base
If your business has a loyal customer base, you’ve basically hit the jackpot of the business lottery! Customers who return for your product/service signify that there is an ongoing demand for it. This also means that the customers are satisfied with what they received.
Loyal customers also come in handy when it comes to expanding your customer base. In fact, you are more likely to gain new customers via recommendations of your previous ones.
For instance, the moving business relies heavily on recommendations. After all, they all know that a satisfied customer means more business in the future.
Moving companies strive to provide the best service possible to maintain and expand their customer base.
For instance, if you go to evolutionmovingdfw.com, you can see all the great reviews that satisfied customers left. This can be an example of a good, reliable company which has a good chance of expanding.
They are constantly asking you to expand your business
Another thing is also very important in deciding about expansion. If your customers are specifically asking for that, then it’s time to really consider it.
They may be asking for more products or services. They may be asking for more hours. Whatever they are asking for, if it’s recurrent, you should do what every good business owner does – listen to your customers.
In some cases, expanding your business can mean just opening another location or adding more features. Take note of what your customers are demanding and try to meet their demands fittingly.
You are struggling to handle the amount of business
Truly, if you and your team feel like you’re overexerting yourself to meet the demand, the quality will most likely suffer. And, of course, that is not good for business.
If you’re turning customers away, that is another sign that you should expand your business. However, before you make the decision, take the time to consider the extent of your business expansion.
If you’re merely short-staffed, hire someone new. But, if the problem is that you’re short-staffed and short in space, then it’s time to act.
Your market is growing
Basically, if your whole market or your whole industry is thriving, then you can expand your business without a worry. After all, a larger market means more chances of getting more customers and more deals.
Aside from the market or the industry growing, certain changes can also instigate the need to expand your business. That is why it is pivotal to keep up with market demands. Even minute changes can cause loss or gain of profit.
The same goes for development. If you notice a small change and find ways to profit from it, you’re on the right track to expansion.
For instance, maybe your competition is turning to advertising on Google, and you’ve noticed that this brings them more customers. Well, if you don’t want to be left in the background, it might be a good idea to do that, as well.
You have a good, sturdy team
There’s some truth to that saying – A chain is only as strong as its weakest link. If all members of your team are passionate and reliable, then this is the perfect basis for expansion. In general, when you try to expand your business, that takes a toll on your staff.
There is bound to be some reshuffling, some roles will change, many people will need to step up. All in all, it’s a pretty stressful process. However, if you’re certain that your team is strong enough to carry it out, then your decision is clear.
Some other signs that it’s time to expand your business
There are some other, personal signs that it is time to expand. For instance, if you feel like you’ve achieved your set goals, expansion is the next logical step. If you’re finding yourself at the helm of a successful business, but aren’t sure what comes next, look into the option of expanding.
other valuable tips:
But, make sure to have a business plan ready for this new endeavor. Preparation is often the key to a successful business.
Also, sometimes, you will face a great opportunity, that is simply too good to pass up. If that happens, you know what to do – seize it!
Sometimes it takes your gut feeling to know that it’s time.
However, in any case, never dive straight in. since such opportunities are quite rare, it’s good to have a “plan B.” That is, while you’re seizing your chance, also think about options if it doesn’t pan out. Because, let’s face it, sometimes things don’t work out the way you hope. That is why flexibility is also one of the best qualities when it comes to expansion. Always have options, and you will never fail!
Image Credit: expand your business by twenty20.com
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