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5 Ways You’ll Know If Your Business Is Ready to Expand

Posted by on 18/03/2019 in Articles, Contributed Post | 1 Comment

5 Ways You’ll Know If Your Business Is Ready to Expand

The concept of growing your business and expanding into new markets can be very exciting. The more you develop, the more you can invest in new products and services. What’s more, expansion means new customers, new lines of profits, and better income for you and your team.

However, it’s important to remember that expansion is a complicated strategic move. It’s not something you should be doing on a whim, or without the proper research. You’ll need to think carefully about whether your organisation is ready for expansion before you go rushing into anything. Often, failed expansions can be the reason why some businesses start to crumble. Here are some of the signs that might suggest that your company is ready for growth.

  1. You Have Regular Customers

You’ll need regular customers if you want to thrive as a bigger business. Hopefully, your base of customers will be growing, and you’ll be able to see a higher number of leads and conversions happening in your analytics every day. Remember, while it’s good to have a regular flow of one-off customers, the best sign of success is that you have repeat clients.

Not only do repeat clients show that your business is doing something right, but these are the people who are most likely to be loyal to your brand going forward. They may even advocate for you to new customers through word of mouth.

  1. You Can Get a Good Loan

Just because things are going well for your business right now doesn’t mean you won’t need a loan to help you launch the next stage of your company. If you need additional employees, new real estate or more materials to take your organisation to the next level, then a loan will help you to do that.

Make sure that before you make any concrete plans, you speak to a bank about the kinds of business loans you’re eligible for, and what kind of interest rates you can get. If your interest rates are poor, then you may need to work on your credit rating before an expansion.

  1. Your Customers Keep Asking for Growth

If your customers continue to ask for growth in the form of new products, services, or bigger packages, then you might need to think about expanding if you want to keep them happy. Ultimately, your business can only thrive if it continues to meet the demands of your customers. If your current clients aren’t happy with what you can offer right now, then growth will help you to deliver whatever they need.

Just make sure that you have a strategy in place to tailor your growth to suit the needs of your customer and deliver the things that they’re asking for. For instance, it’s no good investing in the development of a new product if they’re asking for more of the same.

  1. You’re Generating Regular Profits

One great sign that you’re ready for expansion is that your business has a regular income of profits. To figure out whether you’re making a profit regularly, take a look at your company’s net income. To do this, you’ll need to take your gross income as a venture and subtract any expenditures for the year. This will give you an insight into the amount of money your company earns after you pay for all your bills, materials, employees and so on. If your profits are continually increasing, then it may be time to let your business evolve.

Just remember that one or two months of rising profits don’t necessarily mean that your company is ready for expansion. You’ll need to look for long-term successes that continue over a couple of years before you commit to a bigger company.

  1. Your Industry is Growing

If you’re beginning to notice a stronger industry, then you’ll often find that growing your business is easier. For instance, if you’re currently running a food business that specialises in gluten-free cooking when gluten-free food is all the rage, it’s safe to say that you’re in a good position for growth.

On the other hand, if interest in your niche is beginning to fade or slow down, then expansion might not be the right strategy for you. It could mean that you end up losing cash in the end.