If you expand your business at the wrong time then this could come with disastrous consequences. You may lose out on time, money and even customers, not to mention that it could set your business back in terms of progress too. Luckily, there are a few ways for you to find out if you’re truly ready to expand.
You have Loyal Customers
A strong base of customers who keep coming back to your business is always a good thing. This shows that you are in demand and that the customers you serve are satisfied with the quality they are getting.
Customers are Telling you to Expand
If your business starts to get big then there is a high chance that you will start getting customers out of town. They may travel far and wide just to come to buy from you, and this is a key sign that you are ready to expand. They may be asking you to open up stores in their local cities and they may also be telling you to expand your range as well.
Profit
A lot of business owners worry about expansion because they don’t want to ruin a good thing. This is completely understandable, but if your business has been profitable for at least a couple of years then there is no reason why you shouldn’t consider an expansion. If you have a surge of profit, then this could be due to temporary sales or even seasonal activity. You don’t want to expand based on this alone, but steady profitability really is a sign that something you are doing is right and that your business model can handle an extra store or a new line of products.
Team
Behind every successful business is a solid team who continually put in the hours. If your team
are always going above and beyond then this is great, and you know that they can fuel your expansion. You may even need to consider taking on new employees who can step up and even take charge of a brand-new location as well. If you have some people in mind, or if you know that your team can handle the extra responsibility then expansion could be on the cards. If you need to learn more about teamwork and running a business, then Peter DiTommaso is a prime example.
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You Need More Room
Sometimes, you just run out of room for things. You might not know where to put your extra stock or you might not have room in your store for everything. If your employees are having to sit really close to one another because you don’t have room for comfortable chairs or if they are tripping over the piles of boxes you have in the store-room, then this can really cause you issues. By expanding, you can increase your employee comfort while also making sure that your business is free from clutter. Remember that clutter can be unsightly for customers as well, so by expanding, you could actually be providing them with a much better experience.
[…] else, you really need to run the numbers. We’re not just talking about the costs involved in expanding your business location here, although these are important, but the space you need to make an expansion viable […]