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So your business is flourishing and you’ve decided it’s time to expand. But if it’s done without consideration, it can be the downfall of your business rather than the beginning of a bright new era.

 

Here are our seven tips for growing your business wisely.

Know When To Grow

You may think it’s the right time to expand, but consider carefully if that’s true. It’s unwise to start expanding the minute your business begins turning a healthy profit. Instead, build up reserves, do your research and sit tight until your business has enjoyed a period of solid success.

Don’t Overstretch

Too much, too soon may be the death of your business, so be wary of committing huge chunks of your time and money to new side ventures, services or product lines. As always, so your research first and err on the side of the caution. Better to grow slowly than make the wrong move and let stock that’s just sitting there on the shelves or outstanding debts grind your business into the ground.

Have a Plan (that includes People and Premises)

Know what you’re going to do to expand your business (diversify, open a second office, tackle a new market, increase your product lines?), when, and how much it will cost. Include the cost of promoting any new strand of your business.

If you’re a sole trader, will you be able to handle your newly enlarged business by yourself, and if you have staff, will you need to increase numbers as products lines, services or workload increases? Make sure the cost of extra employees, freelancers or outsourced tasks is included in your plan.

What about your current premises? Will you need more room for stock, more shop space, more rooms? Should you expand where you are or consider bigger or extra premises? And what about equipment?

Don’t risk promising customers a bigger, better business and then deliver disappointments such as treatment rooms crammed to the rafters with homeless equipment or three week waits for appointments or products. Be prepared for success.

Investigate Funding Options

These days, asking a bank for funding to grow your business is far from your only option, so investigate other methods such as peer-to-peer lending and crowd funding.

Keep an Eye on Cash Flow

Make sure the cash will be there each step of the way when required. Overdrafts cost money and you want to spend as little time in the red as possible, so this isn’t the time to be lax with late payers or tardy with sending out bills and invoices.

Monitor Your Existing Margins and Profit

With your attention fixed on growth and new projects, it can be easy to forget to monitor the progress of the products or services that have already brought you success.

Be aware of any increased stock or operating costs and ensure you adapt your prices so that your margins aren’t negatively impacted, and keep an eye on the profits and popularity of your existing products and services to make sure they’re still providing a healthy profit.

Promote your Growth Loudly, Proudly and Widely

Make sure local media and existing customers are aware of what’s new in your business, but think about what kind of customer may be attracted to the fresh products, services or locations you now offer and plan your promotion to get their attention.

 

Now, you should be all set for safely growing your business and ensuring success as it becomes bigger and better. Good luck!

 

 

About The Author

Karl Bilby

We work very closely with our expert accountants to bring you the latest factually correct tax and accounting news. We also enjoy writing about small business news that we hope you find useful!

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