If you own a business, you’ve probably been there – things are going well, cash is coming in, and the books are looking good. But you’re also stressed, tired, and overworked. Your office is feeling small and the front end is kind of cramped. So what do you do? Expand.
Unfortunately, business expansions aren’t always what they’re cracked up to be – sinking money into the wrong parts of your business at the wrong time can be disastrous, and can be a big setback. That’s why it’s important to have a solid plan that supports strategic growth and repositioning.
Today, we’re going to talk about some of the elements of an expansion plan that will keep your business from buckling under the weight and still allow you to continue increasing your revenue to support your growth.
Make Smart Hiring Decisions
Having the right team in place isn’t just essential to expanding your business, but to being in business at all. With the right mix of hard and soft skills, your staff will be able to take on new challenges above and beyond what you ever dreamed was possible on your own. And don’t sell those soft skills short – things like leadership, communication, and enthusiasm for your business and your brand will go a long way toward making your business sail on a rising tide.
Clinch Your Market
When customers start coming to you on a regular basis, it’s a good indication that your business has reached a sustainable level of market awareness. As long as you have the organizational capacity to do so, that means that you can start to refocus your business development efforts on new markets, securing new customers that may have previously been out of reach.
The key, however, is to know that just because your business has landed a strong place in your current market does not mean you should take anything for granted. Staying on top of your marketing and referral plans is critical to maintaining your position at the head of the pack.
Secure The Necessary Funding
Your business may be flush with cash and your books are looking great, but that doesn’t mean you have all the money you need to trigger your expansion plans. Before you can give the green light to growing the business, you should be confident that your business can carry the additional financial strain until you recoup your investment.
In some cases, that means taking out a business loan and paying off the debt service over time. In other cases, you may simply be able to float the cash to grow your business without impacting operations. The key is to make sure that your day-to-day expenses are still covered and that you have an adequate reserve in case revenue doesn’t pick up as quickly as expected.