All businesses want to grow and expand. Without growth then you can’t expect your business to get anywhere. But when your business grows, it can become a stressful time with issues that present themselves. Expanding your business is an exciting time as well, and with proper planning, you can prevent potential drawbacks.
Not having a detailed plan and set timeline:
When it’s time to expand, then it’s time for a new business plan. Without having a detailed plan on the new processes, procedures and marketing strategies then you will just be flying blind into your business growth. This could cause your business to be worse off than before you expanded. A business plan doesn’t need to be complicated, it just needs to be effective. As well as creating/updating your business plan, also create a financial plan and a marketing plan. To keep organized and on the right track, set deadlines for the changes that will be implemented, as well as the stages and tasks to be completed.
Related Article: Tips for Growing a Successful Business
Poor hiring and training:
Expanding your business and increasing sales does not necessarily mean more manpower is needed. On the other hand, putting too much of a workload onto your existing staff without any help could cause them unnecessary stress. Assess your situation and figure out how many new staff members you need and make a detailed hiring plan. A lot of businesses can also make the mistake of hiring the wrong people. Don’t just hire someone because you are desperate; take your time to hire the right people for the position. You will also need to make sure your existing staff members and new staff members are trained properly in your new processes and procedures. If they aren’t trained correctly then your business’s growth may end up going backwards and put you further behind.
Not having enough funds:
When businesses grow everything can increase, from needing more stock and equipment to increased wages for new staff members. After the new changes are put into place, the costs of expanding your business can often be higher than the money you are bringing in, until things start to pick up again. Assessing your financial situation is vital to your expansion as you may need to look at getting a business loan, line of credit or equipment finance to keep things moving forward.
Related Article: Main Types of Business Finance Options
Not researching markets and understanding your customers:
You need to make sure it is the right time to expand, especially if you are expanding into a new market space. Researching market trends, and things that impact your industry will help you to avoid expanding at the wrong time. You need to make sure you understand your customers and what they want while being careful not to alienate your existing loyal customers in the process. You will need the support of your existing customers to help your business grow.
With proper planning and following these simple tips, you can avoid expansion being a stressful ordeal. Growth and expansion are a part of every business so don’t let it become something you will regret doing.
Check out our other articles here.