Everything you need to know about business expansion
By Lorin M|
July 19, 2022
If you are reading this, you’re likely considering expanding your business. Now, you are ready to embrace success and take your business to new heights.
As a business owner, it is imperative that you ensure you’re ready for expansion, that you choose a method of growth that works for you and that you’re able to sustain these efforts in the long run. If you’re ready to get the ball rolling, here’s everything you need to know about business expansion:
How do I know if it’s the right time to expand?
This might be the single most important question you’ll need to ask yourself before making a decision. It might be that you’ve met your goals, or perhaps you’re looking to bring new life to your business, but that doesn’t mean you’re ready for expansion. Here are three key factors to consider:
- If you have more business than you can handle and there just isn’t enough time in the day, this would be the best time to expand your workforce.
- Industries can ebb and flow. If your industry is growing, it’s because there is greater demand for what you’re offering, making it safer to expand.
- To be profitable is one thing, but long-term profitability means you’ll have a stronger foundation and greater financial security to sustain expansion.
What are the different ways I can expand my business?
This is a great question because expansion doesn’t necessarily mean shifting the entire dynamic of your business. In fact, growth can be as simple as hiring additional employees. Here are some examples of how you can expand:
- Go eCommerce. If you haven’t already, we seriously recommend investing in eCommerce as it’s the most effective method of becoming more accessible to your target market, which is what people are looking for in the current climate.
- Add new products/services to your offering. Have customers requested new products? Have you noticed a greater demand for products related to your business? Then there is no doubt about which route you should be taking to grow your operations.
- Expand into new areas. You could open new stores in underserved areas, or in areas where demand is higher. You might even wish to take your business international.
How do I make sure I sustain my business expansion?
Expanding is one thing, but sustaining that growth is a completely different ballgame. While a growing business is something to be excited about, entrepreneurs need to have a “bigger picture” mentality because this endeavour requires more than just finance.
This is how you sustain business expansion:
- You have to consider the skills and expertise of your workforce and place them in roles where the greatest outcome can be achieved.
- When a business changes its offering, brings in new technology or finds new roles to be filled, internal processes will need to be updated and streamlined.
- The time and effort required to make this a success can affect even the strongest mentalities. That’s why dedication is what will make or break your success.
What mistakes are commonly made when expanding?
When so much gets put into the growth of your company, you certainly wouldn’t want to see it fail. So, take a look at these common mistakes entrepreneurs make when expanding.
- Business expansion is often seen as a “get-rich-quick” scheme. This type of attitude doesn’t consider the long-term requirements of such an investment.
- Entrepreneurs commonly spend more money on expansion than what was budgeted, so you should consider raising your budget to accommodate unexpected expenses.
- Some hire inexperienced employees to save on costs, but skill and experience go a long way in business success.
It’s at this point where the missed weekends, long hours away from family and sacrifices you’ve made become worth it. If you’re lucky enough to be able to make this decision, you cannot ignore the important questions.
Funding expansion has also never been easier than with Bridgement as your partner in small business. Our application process is entirely online and can be completed in as little as two minutes. No hassle, no red tape, just business funding.
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