So you got your business off the ground and are ready to expand further. This is a common goal for all entrepreneurs especially when starting a business. We all want to see our business thrive in this market. But the most important thing about this is knowing when to do it. Isn’t the whole point of my business plan is to expand my business?
You might be asking yourself why we want you to slow down the growth of your business. The reason for that is that most small businesses fail because they aren’t doing it at the right time.
Growth is all about the time and circumstances you see yourself in. By attempting to grow at a fast rate without factoring in possible traps ahead, you risk losing the business altogether.
Over the past two years, small businesses have struggled to get back on their feet after the pandemic. The effects of COVID-19 can still be felt today by many enterprises. With a market that is still recovering from the global crisis, ramping up your business might not be the best thing as of right now.
It is all about timing in business. Take for example, the Quick Response Code or more commonly known as the QR code. This was invented in 1994 by Masahiro Haro from the Japanese company Denzo Wave.
You might have noticed them during the height of the pandemic when people were going through a contactless process. You can now see them everywhere, from your local coffee shop to high-end stores. It took 28 years for everyone to know about this humble invention. The reason it took off is that everything lined up just right for it to take the jump it needed.
With the pandemic slowly winding down, you need to be able to review your business model. By doing this, you will be able to see the signs if your business still needs a little more time before your next big launch.
3 Signs You are Ready for Growth
1. Steady Customer Base
Having a core audience before presenting your product to a larger, new audience is important. This ensures that you can keep revenue coming in as you're exploring and trying new audiences.
2. A Solid Expansion Plan
A lot of people want to expand their business but have no idea of how to do it. Having a vague idea of what you want won’t cut it. You need to lay down a solid plan to level up your business for it to survive. Reviewing your business from top to bottom will allow you to see the gaps on which you need to focus on.
This is probably the most ignored aspect of your new launch. Growing a business takes a lot of money. You need to factor in the cost of everything, including at least 6 months worth of expenses. The reason for that is that you need money to tie you over while you experience the growing pains of expanding your business.
Having a business is about factoring in all the risk and reward you can get for each decision. Without a safety net, you risk your business closing if things don’t turn out as you want. Plan ahead and ensure you have the resources you need to keep you afloat during the growth process.
How to Plan Your Expansion
Once you know the 3 signs that you are ready to grow, it is time to plan the expansion. Let us start it out with an example.
You own a small cake shop in which you sell artisanal cupcakes that are made to order. You want to expand your business to open up a new shop across town. To make sure it is done right, you need to ask the following questions.
Do I have enough capital to tie me over?
Do I have an audience in that part of town that can sustain my business?
Do I have possible competitors based in that location already?
Notice that all those questions are factoring in the possible ways your business can fail. The best way to plan out is to know the things that can go wrong and take steps to prevent them. Being ready for them gives you more legroom to react rather than panicking when it finally comes through. Being prepared is the key to success.
Once you know the answers to those questions, you can plan accordingly if expanding there is the best or maybe hold off until you find a better location or timing.
Grow Your Business with LeaseMyMarketing
At LeaseMyMarketing, we have factored in all possible situations for your business to succeed during your growing period. You don’t need to do this alone! Contact us today for a free quote.