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6 things to consider while expanding small business

Expand small business !!!

If you’re like most business owners, you started small—very small. When you were first starting out it might have been just you. Then you may have added a few employees. You started to turn over some profits, revenue and cash flow became steady, and now you’re thinking of expanding. But, with your company sustaining all day, and managing your continued growth, thinking about expanding can be daunting. We’ll be providing some key questions and considerations in this post to help you sort things out and see if you’re ready.Here are six things to consider if you are expanding your small business:

Here are six things to consider if you are expanding your small business:

1. Are you meeting your objectives?

This is an important and very first aspect while expanding your small business. If you don’t go beyond or at least meet your current targets, then it’s probably not time to grow. Even if you have great brand recognition, and your company has a good head on its shoulders, and even if your business is growing — if it doesn’t grow according to your goals, and expansion might not be the best choice. Instead, you may want to spend some time finding ways to meet your goals or evaluating and re-adjusting your current goals. The ability to set reasonable targets and achieve them in a timely manner relies on sustainable business development.

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2. What’s like your flow of cash?

This is an important aspect while expanding your small business. The development adds wealth to your company but rising growth often costs money. Whatever your situation, be prepared for the possibility that you may need to financially put the business on your back until the sales catch up with the new investment. 

Recall that revenue alone does not make a company working. Income and profits, as you know from owning a business, are two very different things.

You need to consider, before expanding, whether your business is better structured to generate revenue or profit. If it is better geared to profit then continue to consider expansion. But if your sales minus variable costs barely produce a profit, and expansion won’t improve those numbers comparatively, expansion could be too risky.

3. Is the scalability of your business?

A sustainable company simply means that it costs less to generate increased sales than existing sales. You might think, could that be the case for any company? What scalability actually means, is that the resulting FAR expansion gains outweigh the development costs. Businesses will always have operating costs, but scalable businesses are trying to keep down their variable costs — or the costs that each customer they earn.

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4. How is your Local Marketing and SEO?

Commonly, the first business you start is in your local area or niche. You have an integrated family, friends, and peers network which may have helped you get off the ground and start getting customers. The longer you ‘re around, the greater the number of people who verbally refer you to friends, share their experience on review boards, and tag your social media accounts.

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Increased verbal communication not only comes from family and friends but also from providing a quality product or service. People share their encounters with an organization because it is either fantastic or miserable, so if you get leads and sales it must be the former.

You might not have the same advantages in a new location though. You may need to start building your network from scratch. The new territories you moved into may not be as familiar to you. Within your target audience, you might need to get to know a slightly different demographic. It is important to understand your SEO and location-based marketing skills because these will be essential for your new location and awareness building around it.

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5. Are Your Head and Your Heart In It?

Business is all about the ultimate. It’s a quotas, deadlines, and numbers game. It is not just the bottom line when it comes to surviving an expansion though. There’s an explanation why Michael Jordan is the best player to play the game, despite being cut off from his basketball team in high school. Yeah, it’s cliche but there’s a justification for cliches sometimes.

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Expanding is difficult, and will pose several challenges on the path to successful growth, which is why you need to be more than a business expert. If you are expanding primarily for the economic gain, having the drive to move through some of the difficulties that come with expanding and handling another chunk of employees can be challenging.

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6. Share your principles with your team?

Looking into the future for five years, can you see yourself working with the same core personnel? Are they investing in bringing the business to the next level? Expansion is much easier if your team shares the same core values and retains them.

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When all “human elements” are in place, growth happens more fluidly. Have a look at your existing team. Have you got those people who are able to lead, inspire, and manage themselves and others? Are they masters of their trade, or at least would they like to become one?

Take these considerations to heart. Hopefully, you’ve made it through this post and are still excited about expansion prospects! If you’re ready it can be a very enriching and productive operation. If you feel like you’re coming short to expand on some of the criteria, that’s all right too. That doesn’t mean that they crush your expansion dreams.

Rather, you are better equipped to fulfill your wish for future expansion. Good luck !!

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