As a business owner, it is not always apparent to you when it is time to think about business expansion. When you start a small business, just like a rookie professional athlete, you don't always know what you are doing. You are a novice and need help to know when it may be time to do certain things with your business. Here are a few tips to help you know when it may be time to consider expanding your business.
Longer Days and Hours
When you first start a business, it is universally understood that there will be long hours. Generally speaking it usually takes more time to build a business than it does to maintain one once it is up and running. Over time however, the hours you spend on the job should decrease as you establish your routine and get your business procedures in place. And of course, getting the proper equipment to perform the work is key to reducing the amount of time spent working on a project.
As your business clientele increases though you will experience another rise in work hours which means it may be time to think about increasing your workforce and equipment storage areas.
There is a certain amount of workload that should feel comfortable to you and that you should be able to handle if you have the right equipment and the correct workforce. When you start to feel overwhelmed it is more than likely an indicator that it is time to expand your business in some fashion by either purchasing more efficient equipment, increasing your workforce by hiring additional workers or outsourcing work through independent contractors.
Not Able To Keep Up With Demand
If you reach the point where you are feeling overwhelmed it certainly goes to reason that you are probably not keeping up with the demand for your services. As you complete projects and build a positive reputation and brand you can expect an increased demand for your company. When demand increases other needs that your company has will increase along with it. This need will undoubtedly require you to take out a small business loan which is normal in this circumstance. When this occasion arises, it is good to know of a good lending institution that can help you obtain a loan at a reasonable interest rate.
Adding equipment, expanding your workforce and other business growth demands will require you to acquire more space for storage, personnel, offices and the like. When you start to feel like a sardine in a can of sardines in your building space it is time to increase your square footage. Trying to squeeze 10 pounds of stuff into a 2-pound bag is never a good idea. When you and your employees are literally tripping over each other it’s time to get some more space.
Know Where You Are
According to the Harvard Business Review there are five stages of small business growth; existence (1), survival (2), success (3), take-off (4) and resource maturity (5). At stage four (4) a business should be planning for rapid expanse and how to finance that expansion. Knowing which of these stages that your business is in will help you to know when it is time to grow your small business.
The road to an increase in profits is a long one and doesn’t have to be hard. Sometimes the key is to seize the moment and find a way. These are a few things that you should consider when thinking about growing your business. Express Capital Funding can help you with your financial business growth.