Many business owners who launch a new company dream of one day making it big, which usually means growing. Before you decide to take your new venture to the next level and start growing your small business, though, you need to get the timing right. When you time your growth well, the process can run much more smoothly and your chances of success are improved.
How can you know when it is time to start thinking bigger? There are a few indications:
- You Have Been Making Profits Steadily for Three Years
Has your cash flow been positive for a long time? Have you been profitable for years? That may be a sign any upswings in profits are not just seasonal or temporary increases and it may be a good time to expand.
- You Are Turning Away Business
If you cannot handle demand or orders, look at what it happening. Do you need better management, or is it a sign of more people wanting your offerings? If demand is high and remains so consistently, this could mean you have the basis for strong growth.
- Your Customers Support Growth
If your customers are asking for more products, new locations and more options and if you have a loyal base of customers, you could be poised for an expansion. If your customers are asking you to offer more, it may be time to honor that request, especially if you have enough of a customer base to support the move.
You should also pay attention if your customers are clamoring for another, related service of product. This can indicate you have enough support for a new launch, and in this case, growth can help you honor your clients’ requests, which tends to be a good thing.
- You Don’t Have to Work for Leads
If you decide to grow, will you have to work hard to drum up more leads to get enough business – or are you already getting so much work you will get more sales and customers automatically? If it is the latter, you may be ready for expansion.
- Your Market Is Growing
If your industry is growing or if you have filled a niche in your market that is exploding, it can make sense to ride the wave of that popularity to take advantage of natural expansion in your field. Before you leap, though, make sure the growth is likely to last long enough to let you recoup your costs.
Making the decision to expand your small business can be daunting. You may want to grow to realize more profits, take advantage of favorable conditions or to honor your customers. Making sure you get the timing right can increase your odds of success.
Before you start drawing up plans, make sure you consult with SLC Bookkeeping. Our bookkeeping, forecasting, and business consulting services can help you make the right choices. If you do decide it is time to up the ante on your business size, our outsourced bookkeeping services can help you handle your books seamlessly as you expand. Contact SLC Bookkeeping today to find out how we can help.