It can be difficult for a business owner to choose the perfect time for his or her business expansion. However, businesses must expand – or else they contract. So, how do you find the right moment to get ready for a big push? Here are some questions to ask yourself:
Will this expansion have costs associated with it?
Usually a large expansion will require that you hire more employees. You may also need to purchase more materials, rent or buy a larger office space and more. Be sure to calculate the expenses associated with your company’s expansion.
Does my business have the funds to carry on with what is successful while also financing the expansion?
A big expansion is always great, except when it causes unnecessary financial strain. Not only should you understand the costs above, you need to make sure your business can both cover its own costs as well as the costs of your expansion.
What is the timeline for the expansion to become sustainable?
While not every expansion is immediately self-funding, there needs to be a plan in place to make it so as rapidly as possible. Make sure there is a timeline with achievable goals along the way so that the expansion will become self-funding and sustainable quickly, thereby contributing to the company as a whole.
Have I done my market research?
Having a brand new idea for your area of expertise can be really exciting. However, be sure to find out if the product has a market and, if so, what that market is. If you are reaching into an industry in which you have little experience, it’s incredibly important to talk to industry insiders and those who will use the product to make sure it covers their needs like no other product on the market.
Additionally, be sure the market you choose will continue to grow once you tap into it. Do your research and pick an expanding target market.
Do I have a customer base established?
If you are pushing into another field or a new demographic, get customers in that demographic excited about the product or service you are preparing to deliver. You can pre-release the product to beta testers or create buzz with a marketing campaign. Having an established customer base clamoring for your product will help your expansion self-fund rapidly.
Is my team prepared for the expansion?
Even if you will hire new employees to help with the expansion, your team needs to be ready and raring to go for the big push. Make sure to brief your staff about your expansion and get them behind you and the project.
Who will run the expansion?
There are two options here:
- You may have your existing business so well established that you can hand the reins over to another executive while you oversee the expansion.
- You might have to hire a new executive to get the expansion off of the ground while you continue to work as the CEO or overall executive.
Either way, it is important to establish who will be the direct overseer of your business expansion before the project begins.
Our goal at the Business Success Consulting Group is to help you establish your business and keep it expanding, while helping you stay organized and financially solvent along the way. Contact us today if you would like to know how we can help your business grow.