Running a small business is an incredibly exciting venture. Once you get things off the ground, you’ll want to keep on growing. It can be hard to judge when you should expand your company. Attempting to expand too soon can negatively impact your profits. To help you come to that decision, check out these four ideas.
1 . Your Business Can Afford It
Most small businesses have big dreams, yet many are held back by a small budget. As a startup in your early phases, money can be tight. Gradually your profits will grow and you’ll start to see more money left over each month. To put it simply, if your business can easily afford to expand, then that’s a good indication that you should!
When you’re planning your expansion, keep a close key on your budgeting and forecasting. Try using budgeting and forecasting software to support your plans. Forecasting can help you visualize your financial health, and understand how you can grow.
2 . Your Team Is Struggling with IT
Is your team struggling to manage your IT? Perhaps they are finding it difficult to handle the technology you use? This is another sign that your business needs to expand. The best thing to do is to work with a managed service provider. Managed IT services can support you to improve your IT systems and offer around-the-clock support. You can access a cloud-based service, backup and recovery, and security support. An MSP will take the time to understand your IT goals and work with you to meet them. To learn more about managed IT services check out this IT company in Provo.
3. It’s What Your Customers Want
The demand for small business products is consistently growing. According to SEMrush, ‘In 2020, 46% of consumers said they were more likely to shop at a small business.’ Their data also showed that ‘74% look for ways to support small businesses even if it’s not convenient.’
Have your customers been asking about new products or locations? If so, it might be time to expand? Before you open up a new location, ensure that you perform plenty of target market research. You’ll need to know that there is a market in the new area. Another way to assess demand is to get feedback from your existing customers. Customer surveys are especially useful if you’re thinking about creating new products.
4. Your Leads Have Accelerated
Lead generation isn’t always easy. According to Startup Bonsai, ‘61% of marketers rank lead generation as their number one challenge.’ What’s more, ‘53% of marketers spend at least half of their budget on lead generation.’
If your leads have accelerated this is another strong indication that it’s time to expand. All businesses want to grow, but if you don’t have the resources to meet demand, this can be problematic. When your leads start to spike, it’s time to get the resources in place, to meet your growing demand.
When you’re looking to grow it can be helpful to set a few goals. What is goal setting? Goal setting will help you to work towards expansion, and monitor your progress.