When it comes to expanding or developing your business, it can be hard to know when to make the move. More importantly, every aspect of your future business growth has to be carefully measured so that your existing business is still supported and fruitful. Developing a business plan for this is key. In times of significant change, the advice of a small business coach can help to guide you forwards. Here is our list of five signs which we believe means your business is ready to be taken to the next level.
1. You are making a decent profit every quarter
Every expansion requires investment and you may not necessarily to make that money back immediately. Therefore, you need to be able to support your existing business through the expansion. Once you have at least two years of consistent profit margins under your belt, the possibility of business growth becomes viable and won’t leave you exposed when you absorb the upcoming expenditure.
2. You have reached the goal you set in your first business plan
We know goals and plans change as your business develops but all good plans include a future aim, the achievement of which you can see as a sign you’re ready for something bigger. Once you get there, it’s important to reassess in the current climate of the economy and the market but chances are your business is in a strong position. Many of us set unrealistic goals for our businesses before they start so if you have achieved this level, you’re probably doing well enough to begin considering business growth.
3. You have too much work for your employees
If you’re unable to fulfil orders and keep up with demand, business growth may be forced upon you. In a good way, of course. If you have the demand and you are confident it will continue, investing in more staff and even a bigger office space is going to pay dividends fairly quickly. It may be a good idea to consult a small business coach for help when it comes to this type of business growth. Often small companies need to be careful in the way they bring new staff members on board and an expert’s advice should always be welcome.
4. Your market is booming
Every market has its time. If your product or service is in demand, capitalise on it. Carefully executed, this won’t be short-term business growth and the surge in the market will help establish your company more permanently. These hot markets can force businesses to expand too quickly, however, so make sure to consult your business plan carefully to help establish your potential and your limitations. Again, a small business coach can help here.
5. You are ready to make a longer-term commitment
Starting a business is very different to committing to business growth. The development of the scope and size of your business cements your belief in your company and your product or services as well as showing your customers you have a long-term business plan. It is advisable to speak to an expert such as a small business coach or someone with experience running a successful business long term before you commit so you fully understand the implications of your expansion.
At the end of the day there is no formula which applies to all companies to judge when it is the right time for business growth. Every company is different, every market is different and every CEO is different. Two companies selling the same products are likely to have entirely different business plans. That’s why we recommend hiring a small business coach who can offer specific advice tailored to your company. If you think your business ticks three or more of the boxes above, contact Real Trade Business Solutions to find out how one of our small business coaches can help you successfully achieve your future business growth.