Is It The Right Time To Expand Your Business?
While business expansion might be a dream turning into reality for many small business owners, it is a major step which requires some serious contemplation. Though business expansion means more money, you should not execute it if you cannot afford it or if your business cannot support the impending expansion. While there are no hard or fast rules to determine the right time for a business expansion, there are few points which might help you in taking a right and timely decision:
Though impulsiveness might have helped you in taking some rightful decisions in the past, it may not necessarily be the right technique. You should not take a decision for expansion until you have attained at least 20% of the market share. Secondly, you need to ascertain that whether the market conditions are suitable for business expansion or not. Such conditions include money, customer issues, working capital, performance of your employees etc. You can include them in your growth markers which can give you a detailed and accurate picture of whether your business can afford expansion or not.
Monetary gains are one of the most essential reason behind the market expansion, thus make sure you have enough money to support it initially. Expanding business is one type of huge investment which may or may not generate profits. Thus, ask your accountant to go through your money details and figure out the points of high or low. Furthermore, you can chart down the probable reason of success or downfall and check whether those conditions are likely to arise when you expand the presently established business.
Once you get the basic knowledge about your money flow, do some market research on the competitors. Find out the products they have launched and changes that you can carry out to preside over your domain market. You can compare your business idea with theirs and find out the positive changes that you can carry out in your business. This way you’ll be able to chart down the list of changes that needs to be carried out in your business during expansion. You can do research work on the upcoming market trends such as the pros or cons of providing discounted services etc.
You can consider getting the customers feedback on their reflection on the impending expansion of your firm. For a more accurate result, you can provide the customers with free items upon taking the survey. This way you’ll have the required data with you and can effectively assume the customer response and reaction to the change. While expanding your business, customer base retention is essential and this can only be achieved by keeping up with good quality of services.
Apart from the above mentioned points, it is important to plan the cheapest relocation strategies if you are planning to expand the current work place. In addition, you need to protect the important IT assets along with retaining the customer base. Thus, selecting the right time domain for expansion is essential. You can even hire professional business relocation services to get the relocation executed in less time. It would also be beneficial if you relocate during odd times such as weekends such that your business incurs minimum loss due to time wasted in moving.