As a business owner or entrepreneur, you have set your growth goals. The question is, when is it time to invest in those goals and make them happen?
This delicate balance is one that company CEOs and startup teams have struggled with for decades. There are many factors to consider and decisions to be weighed when launching a new product, opening a new business, franchising out, and more.
How do you know it’s time to start something new?
You have the motivation, the big idea – but you aren’t sure when the timing will be right to start.
Here are five questions to ask yourself before making this decision:
1. Will the new venture provide a profit?
Many entrepreneurs and even long-term business owners will look at a dream they want to make a reality. Often they examine how much the product or service will bring to the table without considering the project costs. Putting on blinders like this stops them from gathering the full potential profit/loss picture.
Looking at the accounting scene before starting will give you a realistic idea of whether now is the time to start something new.
2. How much needs to be invested to make this project happen?
Most startups need financing at the beginning. It’s vital to understand how much investment you need – and set realistic expectations and profitability goals.
3. Will this new venture take anything away from my existing income streams?
A new venture can be exciting, but if you are borrowing personnel from other departments to make it happen, your existing business model may suffer. Really plan out how you will set up your new department or service so that it supports existing products or services.
4. Do I need to hire experts to make it happen?
With so many businesses going fully remote or online, you may need expert help when it comes to site development, security, functionality, marketing, and more. Additionally, if you are a “big picture” person, you need experts who can implement your strategies within your business to turn your dream into reality.
5. Am I ready to take on this challenge?
If you have decided that this new department, product, project, or business is worth it – the last question you need to ask is “Am I ready to take on the challenge?” Starting something new is a lot of work. Are you ready to make your plan and achieve your goals?
When in doubt, organize
Diving into a new project feet first, eyes closed, is a great way to have that project fail. Good intentions can only get you so far.
Instead of making a big picture plan and just diving in, start out on a firm footing.
Here are some strategies you can use as you organize for success:
Set your goals, then dive deeper
Once you have your big picture goal set, dive deeper to discover what it will take to get there. Look at financing, personnel, materials, customers, marketing, quality assurance, sales, and more.
Set up a structure to support your goals
Create a business structure that will support goals and growth in the months and years ahead. Even if you are the only person running the whole structure, laying out your needs in advance will allow you to grow rapidly as your business or new department gets off the ground.
It’s vital that your new project or product provide a rapid return on investment. The last thing you need is to invest in something that won’t take off. Before you begin, determine the potential ROI and strategize on ways you can increase profitability. This may mean launching something virtually, creating a group setting instead of individual service, or setting up automations throughout the venture. Determine what action will give you the best bang for your buck before venturing into something new.
Growing your business by adding something new or creating a new company is very exciting and often rewarding when done with forethought and planning. Contact Business Success Consulting Group today to share your business growth ideas with us. We are here to help you implement your strategy for business success!