Things to consider before expanding your business
Expanding your business usually involves dedication and hard work. Before moving ahead, consider whether you and your team are fully committed to making the effort and if your operation is ready to support growth before investing your time and money. Whether your business is large or small, there are several personal and operational issues to consider.
Evaluate your motivations for expanding your business, and the impact it could have on your personal and family life before going ahead:
- Are you ready to devote more time to the business, if needed?
- Does your family understand your need to commit more time to the business?
- Will you need to invest some personal financial resources?
- Does expansion fit into your short and long term business objectives?
- Is the return on investment worth your time and effort?
- Will you still enjoy running the business?
- Are you willing to take the risk?
- Do you have the right skills and abilities to manage growth? If not, where will you get them?
If your business is home-based:
- Will additional traffic to your home affect your privacy or that of your family?
- Could it disrupt your neighbours? Some municipalities establish rules for residential areas, so be sure to check ahead.
Your current operations should be relatively stable before you consider expanding your business. Research shows that trying to grow when the business is not ready is a leading cause of business failure.
Growth can put a strain on your cash flow, your production capacity, and your ability to deliver services; be sure you are starting on strong footing. Carefully research your ideas and consider the impact on your operations.
If you're ready to move ahead, take a look at the ways you can grow your business, and some of the things you may need to do to achieve your goals.
- Assess your options for growth
Learn how to choose the appropriate strategy for your business, when to implement it and which financial choices are suitable.
- Challenges of growing a business and how to meet them
Learn how to recognize and avoid common growth-related traps to help your business continue to grow and prosper.
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