Expansion – Is Your Business Ready For Growth?
At McDade Roberts we help business owners from new start up's to retirement and beyond. We also specialise in helping those businesses wishing to grow.
There are many situations where a business would benefit from expansion. Whether it is because of increased demand for a service or product, adapting to your customers' changing needs, or branching out into a new area, but it is important to weigh up both the advantages and disadvantages of growing your business. Read on to find out more.
Should I Grow My Business?
Research is key in making an informed decision about expansion. Study the demand for your product, your potential marketplace, your competitors and your customer base as well as the impact expansion may have on your internal processes. It is important to explore every eventuality before making a decision.
You should consider expanding only if your business is healthy. If it is not profitable, expanding may cause bigger problems. Assess your current business performance thoroughly, to ensure that you have a solid base that can take the inevitable pressure and upheaval that expansion will present.
Think about why you would like to expand and whether doing so would result in cost advantages for your business. Expansion often means using more resources and employing more staff. Would the increased business make sufficient profits to justify these extra costs?
Funding An Expansion
There is also the issue of financing an expansion. Funding remains a challenging area for small businesses, but there are other options you could consider instead of the traditional bank loan. Invoice factoring, overdraft facilities or leasing equipment could provide you with more funds and reduce the amount you need for expansion. You could also consider investment finance which would mean that an investor would share some of your business risk. If you do decide to apply for a business loan, remember to make sure your business plan is watertight before presenting your application to the bank.
Risks of Expansion
Growing a business is challenging and it is important to consider the risks associated. There is potential for financial loss and you will have to navigate through unfamiliar territory and face numerous unexpected issues along the way. It is therefore important to make sure you feel capable of taking on such obstacles. If all of these issues have been duly considered, the benefits of business expansion can be numerous and extremely rewarding.
Making It Manageable
Managing a business expansion, like any other business project, will mean you need to plan extensively in order to make sure the task in hand does not become overwhelming. Of course, you will not be able to plan for every eventuality but the more planning you do, the more likely it is that your expansion will run smoothly.
Some Tips To Help:
- Consider expanding in stages, according to demand
- Set yourself goals and deadlines
- Look at your marketing plan
- Set up your systems first
- Manage your customers' expectations
McDade Roberts Can Help You Too
Growing a business can certainly be stressful. One way you can help yourself navigate the stress if to get expert help to advise you on your journey to growth. At McDade Roberts we help hundreds of businesses grow so why not call us to discuss your plans. The first consultation is free of charge so you have nothing to lose by calling 01772 717110 today.