4 Signs Your Business is Ripe for Expansion
When you first open the doors to your new business, thereâ€™s no doubt that you have laid out a variety of goals and milestones that you hope the business can achieve. Ticking off each of these boxes not only ensures the company is heading in a successful and profitable direction, but it is also the roadmap to expansion, paving the way to future growth. So, what happens if youâ€™ve now reached the point where you think expansion may be on the cards? How can you tell itâ€™s actually the right time to expand?Â
While there is no guaranteed answer, there are a variety of signs you can watch out for that can signal that your business is indeed ripe for expansion. Letâ€™s take a closer look.
You Have a Team of Strong and Reliable Employees
Any successful business owner can attest to the fact that it takes more than a great idea to make a business successful. What you also need are the people behind the scenes, good employees that will bring your ideas to life, keep the business operating, and push things forward. If you feel that youâ€™ve got a strong and reliable team of employees with the right kind of knowledge and experience, then this can be a great sign expansion is warranted.
You Have Built Up a Loyal Customer BaseÂ
Then there is your actual customer base. Expanding when you donâ€™t have a loyal and large customer base is always a mistake; you need to draw in the clients first and then think about expanding. You may also reach the point where your customers are actually asking for the company to grow and expand, which again is a big sign.
The Industry You Are in is Growing and Expanding
Another indicator is the industry you are in. If the industry is going through a period of growth and expansion, and you see your competitors offering more services and products, opening new locations, and then there are new businesses popping up in the industry, this is a sign that you need to keep up and expand to stay competitive. Itâ€™s the whole â€śstrike while the iron is hotâ€ť theory.
The Business Has Recorded Profits for the Past Three Years or More
Of course, your business also needs to be profitable in order to warrant any sort of expansion. This is often described as having at least three years in a row of profits. Cash flow must also be positive.Â
Now keep in mind, just because you have a positive cash flow it doesnâ€™t mean you have enough to bankroll an expansion plan. This is when you’ll want to look into your borrowing options. A good way to do this is to use Become, which joins more than 150,000 businesses so that you can find the very best funding options out there.Â
Its technology makes it possible for you to find tailored funding that will meet your specific needs, it provides insight on how you may improve your odds of being approved for funding and plenty more.
Timing is Everything When it Comes to Expansion
So, when it comes to expansion, as you can tell, timing is everything. Itâ€™s about really understanding the companyâ€™s current position, the market trends, and the customers.