Your company is prospering, and you’re starting to truly live the American dream. You love what you do and are excited about the future, but how do you know if the time is right to take the leap and expand your business? There are some powerful indicators that can make this decision easier.
Strong Customer Base
Regardless of the product or service you provide, buyer behavior is your guide to future success. Think about your patrons. If many of them give you repeat business and refer their friends, this is a very good sign. It’s even more positive if people frequently tell you how much they would like to see an enterprise like yours closer to where they live.
Making money can be intoxicating, and it can cause you to be impulsive. If you decide to expand, it should be a plan built on a foundation of long-term black ink. Many experts suggest that you should be making a profit for at least three years before growing your company.
You Have Employees You Can Count On
While capital is the lifeblood of your enterprise, employees are its backbone. A strong team of committed and knowledgeable workers can be an invaluable part of any expansion since they already are experts in your methods and work culture as well as your products and services. If you can get them to buy into your growth, you will be one step ahead.
There Is a Growing Need for What You Do
Before you take the expansion leap, be sure that there is an increasing need for what you are offering. That means scouting for competitors and looking at market trends. If after taking these steps you still believe there will be a growing group of customers paying for items on your debit and credit card system or online through your ecommerce website, it might be time to take the plunge.
You might find yourself in this situation: No matter how many hours you work or how many people you hire, there is still more business than you can handle. Of course, your first priority is to ensure that this isn’t happening because you aren’t managing your time properly. As long as you are organized yet are still overwhelmed with demand, this is a great indication that taking the step of growing your business will lead to even more success.
There Is Demand for Related Services or Products
Many businesses start out with a very narrow focus, electing to sell only a small selection of products to test the waters. Over time, however, you may recognize that there is an unfulfilled need for similar, peripheral items or services. For instance, you may have begun your business by selling only guitars. Since many of your customers routinely request accessories such as strings, polish and even sheet music, you may well be in a position to enhance your offerings.
The decision to expand is one that should not be made impulsively. It’s a leap of faith that requires time, countless hours of work and a good deal of risk. Being as prepared as possible before you take the next step is one of the best ways to ensure that you are ultimately successful in your big move.