Every business owner focuses on building a sound and stable business that can bring in a steady flow of revenue and profitability. They are full of energy and are always raring to go. They have the drive and motivation to make things happen.
Building a successful business is not an easy feat. There will be times when you may find it extremely challenging to put one food in the door and your drive and motivation for your business is not enough. But if you are focused and you work ON your business then it may be time to grow.
Is it The Right Time to Get into Expansion Mode?
use you have a stockpile of cash stashed away somewhere, but more because the urge to grow your business is so strong, that it's difficult to ignore. It's likely you're already stretched thin on resources, energy and time, yet you're inner drive keeps pushing you to widen your horizons.
From a business viewpoint, this is definitely a good thing, because it indicates you believe in your abilities as well as your brand. You personally feel your product will do well and people will want to buy from you. There will also be some advice from family and close friends that you should proceed with caution.
It's important to keep it in the back of your mind that things may not go according to plan. Your plan can take a different turn and things may not play out as you like. However, if you have been considering expanding your business, and feel that you really ready for it, look for these four indicators.
#1 Entrepreneurial Zeal
A very limited group of people have the unique asset of crazy passion. It's a part of them that loves trying new things, taking risks and moving forth against all the odds. Not all business owners are like this and this quality distinguishes them from the nine-to-fivers and the business owners who are happy remaining small. It drives them to take on the big task of expansion despite all the challenges that will be thrown your way. If you have this passion and zeal, you are ready.
#2 Very High Demand for Your Product or Service
Zeal isn't everything. You need to be practical in your strategy when expanding. You need to have a level head and think things through because growing too big too fast can be determinantal. After all, no business can be successful unless there is a demand for the service of product they are offering. Sometimes, a business can be very profitable because it is in a great location.
If, for example, you are managing one or two retail stores, will an extra store be profitable or will it just add to your challenges. Will it cost you or make you money?
On the other hand, if you are an online business and feel there is a definite market for your product or services in other regions, expansion could be a good idea. You also need to ensure that you have the right logistics and project management processes in place before making this move.
#3 You Have Interested Investors Or Capital Set Aside
There may be a number of people interested in investing in your business, but that means nothing unless contracts are signed and money is in the bank. If you are setting up a new physical location, and expanding infrastructure, you need to have a clear understanding of the type of capital you have ready at this point of time. You also need to have a buffer for contingencies, ramping up during the opening months as well as for training etc.
#4 Systems and Processes Are In Place
While many business owners feel that they have the systems, just having the idea in the head doesn't translate into reality every single time. Consider whether your business can run without involving you for a couple of weeks. If the answer to that is yes, it means you are ready to expand.
The long and short of it is that you need to be a little practical and realistic when it comes to expanding and growing your business. Ask yourself whether you can afford it from a financial viewpoint as well as mentally, physically and emotionally. Only when you are sure that your existing operation isn't running without any glitches and almost perfectly; is when you can be confident with your expansion plans.
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About the Author
Ben Fewtrell is a sought-after Business Coach, Keynote Speaker and trainer who has featured in Virgin’s Inflight Magazine and Entertainment Portal, SKY Business and “Secrets of Top Business Builders Exposed”. He is also the host of the popular Business Brain Food Podcast where he interviews leading experts on anything and everything business.