You’ve been running your business for a while, and you think it’s time to expand. Ideally, this will be organic, in response to increased demand for your product or service. However, even if customers are clamoring for more of what you have to offer, there’s a right and a wrong way to grow your business. Make sure that you avoid the pitfalls below.
Too Much Too Fast
This is probably one of the most common mistakes business owners make. It can look a few different ways. You may be spreading yourself too thin in terms of what you can accomplish, or you might not be able to keep up with demand. If you are a restaurant or a retail establishment and growing means moving to a bigger space, make sure that it’s actually the right time. You don’t want to end up with more square footage than you actually need to serve your customers.
The Wrong Tools
As you get bigger, the challenges you face will change, and you’ll need to scale up your solutions as well. If your company includes a fleet, as it grows, you will need to have the necessary tools to make sure your drivers are continuing to operate efficiently and comply with any regulations. One great way to do this is with GPS fleet tracking software that uses GPS real-time data. You might not have needed this when you only had a couple of drivers or the fleet was a smaller part of the business, but getting bigger means making changes.
Cashflow Issues
Sit down and take a hard look at your finances. Can you afford to do it? Examine your daily numbers and figure out whether any cashflow problems are likely to happen. Even if they aren’t likely, do you have the financial reserves or a plan in place in the unlikely event that they do? In this case, would it be wise to look for an appropriate source of extra capital, such as one of these minority business loans? You don’t want to find yourself in a situation in which the money coming in is a few days or a few weeks behind what is going out.
Planning Issues
Just because business is booming doesn’t mean you don’t need to plan your growth carefully. There are many resources available to help with this. For example, those in the care industry may wish to utilize this free guide to grow your NDIS business. In fact, it’s not a bad idea to go back to the drawing board and write up a new business plan because you’ll need to consider some of the same questions. As you grow, you may face a different kind of competition. Are you prepared for your competitors? Do you know what you will do to distinguish yourself from them?
Your loyal customers may be following you, but you might also need to figure out how you are going to gain a competitive edge and attract a larger volume of new customers. You might need a revamped marketing strategy. In addition, your goals may be changing. Think about what your goals will be for the growth that you anticipate and how you will measure your progress. It’s possible that you may decide that the time isn’t right. This isn’t a failure, as it’s a prudent decision that can help set you up for success in a year or two when the time is ripe.
