If your business is performing well, you might be contemplating expansion and growth potential. Although it may seem like a great idea, the reality could be a very different story, so you must be sure it’s the right decision before going ahead.
Here are 4 things you should consider before expanding your small business.
Premises
When expanding you need to consider whether your current premises are big enough. As well as potentially having extra employees, you may need extra space for stock and office supplies.
Maybe you feel your business would benefit from opening satellite offices or stores in different locations. If this is the case, you need to look into the cost of suitable locations and calculate whether your long-term earning potential will outweigh the costs of additional or larger premises.
Branding and brand recognition
Every growing business needs a solid brand and growing recognition for that brand. According to Atomic Idea, a Colorado marketing agency, branding is so much more than a logo, and a solid brand strategy must exist to provide a foundation for marketing and communications efforts.
As well as making it easier for customers to recognize your business and what it stands for, a solid brand will enhance customer loyalty, help you stand out from the competition, and help make new product launches far more successful. If you don’t feel equipped to handle brand awareness and marketing strategies yourself, outsourcing to a marketing professional is worth considering.
How will you handle quality control?
Regardless of whether you sell services or physical products, you must ensure the same quality control measures are in place as you expand. It may run like clockwork at the moment, but will you be able to meet the same standards when your sales increase and your business grows?
Achieving this may involve additional and ongoing training for staff, implementation of quality management software, or even outsourcing your fulfillment operations. You must have strategies in place before you expand, or it could severely impact the future of your business.
Will you need to recruit additional employees?
Although you may be hesitant to take on additional employees just in case things don’t work out, it makes sense to do so. You need to factor in associated costs, but if you are going to meet the demands of your customers, you may need help.
If employing permanent staff concerns you, why not go down the temporary contract route initially with a view to the positions becoming permanent if and when your business takes off? Another option is to outsource certain business functions. It will not only free up some of your time but will give you peace of mind that these areas are being handled by experienced, well-trained individuals who should meet or surpass your expectations.
Growing a business can be daunting, but with a bit of planning and lots of strategic thought, there is nothing to stop you from making a success of it.