If you’re like us, and are obsessed with growth, then thoughts of how to expand your business is enough to keep you awake all night. But maybe not anymore – at least after reading what we have to say.
Expanding your business could mean installing more powerful equipment, hiring higher-skilled workers, and opening up a new location. But before you start stacking your hard-earned coins to make that next big upgrade, you must ensure your business will handle that level of growth.
So, here are three important signs you need to confirm before expanding your business.
You have loyal customers.
We’re not just talking about Mrs Adelaide that visits your bakery once in a while, when she’s in the mood for it, while on her way to work because it’s convenient. When we mean loyal customers, we mean people who would purchase your products and refer your business without the need for consistent persuasive marketing or any effort on your part. When your customers consistently provide a reasonable profit margin for your business, it’s time to go to the next level.
When demand exceeds supply.
Your business doesn’t necessarily need to offer a product to satisfy this condition. If your business is getting more business than you can handle, then an expansion should be on the horizon. At this point, it means hiring more employees to handle the opportunities that you can’t take care of or, better yet, opening up a new location. If your demand exceeds supply for too long, you’re throwing money away that could otherwise help your business.
Your industry is booming.
The business landscape shifts and changes regularly. This month, the most in-demand industry could be focused on healthcare. As a business owner, you must prepare your business for that moment when the tide shifts in your favour. By expanding your business for the time when the industry is booming, you’d be in the perfect position to be the target of higher-value customers and potential investors looking for the biggest business in town. Take a look at the direction of your industry before you expand to give your business the stability it needs to stand the test of time.
Now, if you haven’t satisfied all the points listed above, then what should keep you awake at night is how to go about doing that.
If you push your business without proper thought, it might not survive the change. If your business is prepared, then it has all it takes for more money and higher-paying loyal customers.
Now it’s time to ask yourself, is it time to expand? Get more tips to grow your business on Moniepoint Blog
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