If you’re the owner of a small business, you’ve probably thought about expanding at some point. Whether it’s increasing your customer base, adding new products or services to your menu, or making plans for growth in the near future, it’s important to know when it’s time to start thinking about bringing on new employees and moving into bigger offices.
Below are six signs that your business is ready for expansion:
You Know Everything About Your Product or Service
The first step in expanding your business is knowing the ins and outs of what you’re selling. You must be able to explain how you deliver your product or service to customers, how much it costs to produce and sell, and what that means for pricing. For example, you know all the most popular snacks that you put in your snack subscription box, where to source them, and where to get them when your favorite vendor is backordered. When you know these things, you can anticipate costs better and have a good backup plan for when things don’t go as smoothly as you’d prefer.
You’re Already Considering Hiring New Employees
When you start to think about hiring new employees, it’s a sign that your business might be ready for expansion. The best businesses have an internal culture that makes it easy for them to hire more people and they’re not afraid of expanding. It also means that you’re thinking about the kinds of roles you need people to fill and what responsibilities you want them to have.
You should always try to hire people who are smarter than you. If you’re constantly having to explain things or answer questions, this isn’t good for the company or its success as a whole—and it’s no fun either. In order for your business to grow and thrive, that infusion of intelligence can be invaluable as you look for input on your business as well.
You Have a Good Relationship With Your Customers
A good relationship with your customers is key to business growth. Customers are the lifeblood of any business, and if you want to expand, you need to have a loyal customer base that will help you reach your goals. There are several ways to build that kind of relationship. Keep in touch with them on social media and via email. You can also send out newsletters or emails related to any new products or services you’re offering – this helps keep your brand fresh in their minds. They can also be great resources for opinions on what kinds of products to add to your business.
You’ve Mastered the Art of Delegation
If you can delegate, then you can grow. Businesses that know how to give up some of their authority to other trusted leaders are the ones that will make it. If everything is bottlenecked to one person, then the growth of the company will be limited by you as the business owner. You can grow if you can give responsibility fully to another person in your business.
This is a wonderful place to be when you’ve mastered the art of delegation. You’ve got a great team in place, and you can trust your employees to do their jobs well. They’re no longer getting in the way of your vision; rather, they’re helping execute that vision better than ever before. They may not know what’s going on behind the scenes, but they know how important their roles are and how integral they are to making things happen.
Your Business is Growing Steadily
If your business is growing steadily, it’s likely that you can predict how much revenue you’ll bring in over the next year. This means that your company has achieved a mature stage of growth. Having predictable growth allows you to better plan for expansion costs—and even expansion itself. If your business grows at a steady rate, then it will be easier to predict when and where new locations would be most profitable, what new products people will love, and how to easily add on new staff.
Your Profit Margin is High
Profitability refers to the amount of money you make after all expenses have been paid. It’s a key indicator of business growth, as it shows how much profit your company generates compared to the revenue it brings in. The ratio of net income to revenue will give you an idea of whether you can expand your business or not. If this number is low, then there’s no point in expanding; if it’s high, then expansion might be worth considering.
