If you are a small business owner, you may be asking yourself, Is it time to grow my business? Before you race off to grow your business, you need to make sure that your company is ready for expansion.
Continue reading to see if it is time for your small business to grow. And, check out the steps you can take if it is time for your business to expand.
Time to grow your business
You may have noticed that your business has regular customers and steady cash flow, but is it time to grow? Look out for the signs below.
Seeing repeat customers is a good sign. It means you are offering a product or service that customers want to keep coming back for. Having a regular flow of customers shows that there is a demand for your product or service. If you want loyal customers, you need to listen to what they want. The better you know your customers, the more likely you are to manage steady cash flow for small business.
If you started to notice regular customers, you have probably also seen steady profits. Steady profits mean your business is prepared to grow. You can find and calculate net profit by subtracting your business expenses from your gross profit. After your business has been profitable for three years, it might be time to consider expanding.
Too much business
Have you noticed that it feels like you are working 24/7? Or that you can’t keep up with leads and have to turn potential customers away? You most likely have more work than you can handle. Expanding your business can help manage the demand and grow your customer base.
Running out of room
Does it feel like your location is getting smaller, or that there’s barely any room in the office for your supplies, let alone your employees? If so, it may be time to seek a bigger space. You may need to move locations or open up a second location.
Are your current customers asking you if you plan on expanding to more locations? Having loyal customers who support your growth no matter where you are could mean that you can be even more profitable if you decide to expand. Take note of customers’ requests and grow your business with customer feedback.
How to grow your small business
If you decide it’s time to grow your business, you will need to find a way to expand. Below are a few ways that you can grow your business when the time is right.
1. Offer new products
You might want to consider growing your business by offering new products or services to your customers. Look for new additions that will complement what you already offer. For example, if you own a hair salon, you may want to start offering nail services.
2. Open a second location
Opening a second business location is a great way to bring in new customers from other areas, and it gives your business more exposure to different communities. Research your surrounding areas and customer demographics to decide on a new business location. If your business is ready, investing in a second location should increase sales and cover the cost of expansion.
3. Market to new customers
Marketing to new customer bases can help increase sales. You can complete a market analysis study to decide who to target. From there, you can explore different ways of bringing these potential customers to your location. You can mail out coupons to customers to use on their first purchase at your store, use email marketing, or have an in-store event with free samples.
4. Partner with other businesses
Teaming up and partnering with other local businesses would be an excellent way to gain more exposure for your business and encourage growth. An excellent way to exhibit a sense of community is by showing how other small businesses have each others’ backs. For example, if you are a local breakfast cafe, your business could sell coffee from a local coffee shop or baked goods from a local bakery.
5. Hire employees
Hiring new employees is a must, especially if you plan on opening an additional location. You will likely need to hire additional employees to accommodate your growth. Build a strong team that is ready for additional work and challenges.
Is your small business expanding? Our online accounting software is simple to use and helps keep your financial records on track as your business grows. Try it for free today!
This article has been updated from its original publication date of November 6, 2018.
This is not intended as legal advice; for more information, please click here.