There comes a time with any small business when you’re going to ask yourself: “Should I expand?” Much like starting your business in the first place, expansion can be a scary prospect. Here are a few tips that should let you know whether or not now is an opportune time to expand your business operations.
Are you operating at capacity?
Do you feel like you’re completely booked to capacity, or that your employees are constantly swamped with work? In either case, it may be time to open another location or hire some more employees. When you’re consistently operating at peak capacity, there is a chance for your employees to feel burned out. Either way, if your business has hit its capacity, it’s probably a good time to look at expansion.
Do you have the resources?
In order to grow, your business needs resources. Just because you “feel” that it’s a good time to grow your business does not always necessarily mean that it is. If you’re lacking the proper financial leverage, or do not have the time to commit to business expansion, it might be a better idea to wait a little longer, or lower your ambitions for business growth to better align with your current resources.
Are you willing to accept more risk?
As with any venture, growing your business has a moderate amount of inherent risk associated with it. If you aren’t willing to take on the increase in risk, it might be better to wait until you’re in a better position to absorb the extra risk associated with business growth.
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