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Signs of Growth: How to Know If Your Business is Really Ready to Expand
by Elena Wed, 03/01/2017 - 11:13
Expanding your business could be just as exciting as opening your doors to the public for the very first time, but it is also just as challenging. Those who incorrectly read the market might find themselves struggling with more responsibilities and a much tighter budget. Here are a few signs that your company might be ready to expand and what you can do minimize your risks during that time.
Customers Are Searching for You
There may come a point when it feels as if your company has picked up so much momentum that you no longer need to seek out new customers. While that is not necessarily a clear sign that you are ready to expand, it is definitely a variable that should be taken into consideration. At the very least, a new wave of proactive customers will reveal that your current marketing tactics are working well.
You Have the Right Cash Flow
No one expects a storefront to fail, but it is something that you should keep in mind when you are expanding. You also want to be wary of taking on new debt to open additional locations or to expand your business. As an alternative to high-risk loans, you might want to consider alternative financing options such as angel investors or partners.
Investors Are Coming to You
If other parties are willing to risk their own money on your enterprise, then it might be time to consider franchising or opening additional storefronts. While you will still have some skin in the game with those new locations, your level of risk will be much lower. Franchising also gives you the opportunity to open multiple locations within a short period of time. Just remember that if you choose the franchising route that you may want to consider working with a lawyer, like those at Strauss Troy, that specializes in that area of the business realm.
You Have the Perfect Team in Place
Business owners should never even consider expanding until they have the perfect team behind them. You want to be absolutely sure that your current location is practically running itself before you start tackling new challenges. You must also have a management team that is ready to grow alongside the company and pick up any slack. Losing key employees while you are trying to expand your business could result in a catastrophe.
Expanding at the perfect time will permanently transform your business, and that is why you must always keep your finger on the pulse of the industry. When it finally comes time to expand, you can then confidently begin taking steps to increase your customer base, open new franchises, and hire new employees.