Most business owners are scrambling to find ways to keep themselves afloat.
However, if you find yourself in a situation where your business is booming, consider yourself fortunate.
Rarely does entrepreneurial success happen by accident, though. Businesses riding high on a wave of momentum should do everything in their power to capitalize on their success sooner rather than later.
Although there’s always that nagging fear that you might be expanding too soon, consider the following as signals that your business is indeed ready to take itself to the next level.
You’re Seeing Consistent Growth
When your bottom line is growing on a regular basis, you know that you’re doing something right.
Many businesses make the mistake of expanding too quickly because they see one or two months of solid profits. However, if your business has seen exponential growth over an extended period (think: six months to a year), it’s safe to say that you’re moving in the right direction.
Do your homework and look at your business objectively by the numbers: if there are no anomalies with your profit margins and everything’s on the up and up, you’re golden.
You’re Running Out of Room
When running a business that sells physical products, you can actually visualize how well you’re doing based on the status of your inventory. If you’re running out of room for your storage or need more space to keep up with demand, its’ probably time to expand.
Thankfully, smart storage solutions such as a Quonset hut are good ideas for home-based business owners and bigger enterprises alike. Such buildings are also solid investments if you need warehouse space in the short-term.
Your Colleagues Are Eager to Expand
No business is an island: if you want your potential expansion to be successful, you’re going to need the support of your team. Assess your current team and don’t be afraid to pick the brains of your colleagues to see how they feel about expansion. The more willing your team is to bring new blood on board and take your business to new heights, the smoother the transition will be.
You Have a Nest Egg
Having money in the bank prior to expansion will not only give you peace of mind but also something to fall back on in case you hit any snags. Although you should have a certain degree of confident prior to moving locations or bringing on new staff, it never hurts to have extra cash on hand in the form of a nest egg for your business.
Your Industry is on the Rise
Oftentimes, your ability to successfully expand is dependent on factors beyond your control such as the status of your industry and competition. For example, web-based businesses that are selling to a worldwide audience having greater potential to expand versus brick-and-mortar companies that solely serve local businesses.
If you’re in a seemingly volatile industry you may want to stay put. However, if you’re doing well versus your competitors and have profits to boast, expansion might be on the horizon.
Expanding your business shouldn’t feel like a gamble. Rather than risk everything, take the time to understand what you realistically need to do to grow and whether or not you have the tools in your toolbox to make it happen.