Anyone who starts a business does so with the intention of succeeding. But the first few years of owning the business, most entrepreneurs are too focused on getting everything up and running smoothly to devote much attention to growth.
But eventually, your business is likely to hit a plateau. Business is good, you’re working to capacity, and there is potential for more, but if you’re like many entrepreneurs, you may be reluctant to take the leap and expand your operation. Hiring more employees, expanding your product line, opening another location, and other growth activities can be nerve-wracking. If the expansion doesn’t work out, it could be devastating.
At the same time, allowing your business to stagnate means that you are robbing yourself of the chance to reach your goals, not to mention, opening the door for your competition to fill the gaps that you aren’t. With so much at stake, resisting growth isn’t always the “safe” choice.
So how do you know that it’s time to take the plunge and grow your business? There are usually a few telltale signs — some more obvious than others.
1. Customer Demand Is Exceeding Expectations
When you first start your business, job number one is finding customers. So you invest money in marketing, ask for referrals, and basically do everything you can to keep the phone ringing. For many businesses, this process never ends, and they spend years chasing down new leads. However, if you find that most or all of your business is coming to you, and you don’t have to spend much time or effort in marketing, then it might be time to expand. This is especially true if you and your team can’t keep up with demand. If you have to turn away business, or service is suffering because you can’t keep up, you are ready to grow.
2. You Have Confidence in Your Team
Many venture capitalists consider a company’s team when making a decision about whether to fund an enterprise — a lesson that all entrepreneurs can learn. If you don’t have the leadership skills necessary to guide your team through a growth period, or you don’t have a supportive, committed, and skilled tea behind you, everything you do is going to be a struggle. Ask yourself if the people working with and for you are prepared to grow too, and if they aren’t make changes to put yourself in a better position.
3. You’re Running Out of Physical Space
It seems obvious, but many businesses hold themselves back, because they don’t have enough physical space. If you know that there is an untapped market that you could fill if you only had more space for production or employees, it only makes sense to look for new options. If your employees are tripping over each other, or you can’t hire any more people, despite needing one, you need to move into a bigger space. Your ability to expand your operation and improve productivity will more than cover the costs.
4. Your Passion Is Growing
Some business experts point out that when a business owner begins running his or her business just to make money, and the hard work becomes a chore, then the business has moved from a passion into a job. Passion is what makes businesses grow, and if your enthusiasm and passion for your company are contagious, it’s almost impossible for you to remain stagnant. Look at the bigger picture, and envision where you want your company to grow, and what it will take to get there. If you have the drive, and all of the other pieces are in place, now is the time to take the leap.
Think Before You Grow
Just because you’re passionate about what you do and customers like your product doesn’t mean that you can just jump into an expansion. You have to consider a few points, including:
- What is your plan for growth? What steps will you take to bring your business to the next level?
- What are your goals for the business?
- How will you finance the growth? Have you explored all of your options for business funding, so you know you will have operating capital during expansion?
- Are you mentally ready for the demands of growth? Expanding a business is a lot like opening a new one, in that you will probably have to make sacrifices and put in long hours to get the new endeavor going.
Deciding to grow your business is a major decision, but if you take time to consider all of the options and develop a workable plan, it could be the best one you ever make. Don’t fear growth, but look at it as the natural progression toward your ultimate vision for your business.
