Hard working business people recognize that being a business owner is not the same as being an effective business owner. As an owner/operator, the world falls upon your shoulders. Luckily, if you have started your own business, many of the skills will translate into launching that company to the next stage of growth. This article will go over four of the signs you can expect to see when your business is ready to expand. Here is what you need to know:
You Have Solid Employees
The backbone of any successful business is the team that makes it all happen. If your business does not have a reliable group of staffers, expansion is out of the question. Having a capable team of individuals on the ground and at your headquarters is incredibly important for hitting any growth targets. Good employees can also lessen the burden on management. Expansion can be incredibly work intensive and hardworking employees can shoulder some of that burden.
Demand Is Exceeding Supply
Any time you are unable to fulfill orders due to lack of capacity it is time to expand. By not being able to fulfill orders, you are leaving money on the table. In addition to limiting your profit, you are also giving your competitors a leg up. If you are unable to meet demand, it is time to start thinking of buying or renting more transportation infrastructure to be able to fulfill those orders. You can do so at a discount by purchasing used.
When demand increases, you’ll need to expand in areas that will help you meet that need. One area of you company, for example, might be your fleet. You may need to stock it with more trucks, like those from Arrow Truck Sales, to help get product out.
You Have the Necessary Capital
Even if your business is flourishing, expansion plans can be incredibly capital intensive. In order to make sure that your expansion plans go as expected, it is important to have liquid assets available during the expansion period. Generally, you want to have 6 months operating capital alongside all necessary durable goods.
Expansion Plans Are Ready to Be Implemented
The most important step one needs to take before undergoing a business expansion is a concrete plan to start and keep growth coming. This is typically done in a 6 month to 3 year cycle. Once you have these plans in place, remember that plans can always be altered. It is not necessary to stick to the plan 100%- be flexible where you can.
Growing your business is never easy, but it is manageable. With all the right pieces of the puzzle in place, things will become much easier.