After a few years of running your own business, you might find yourself doing quite well. If that’s the case: congratulations, you made it big. A successful small business is a somewhat rare sight, so pat yourself on the back. But then you might start to wonder: is it time to expand? To help you decide, we have put together a list of signs it’s time to expand your small business.
There is too much business
This isn’t something anyone should complain about. More business means more profit, and that’s never a bad thing. However, if you find yourself with so much work to the point where you can’t handle it, that is an obvious sign that it’s time to expand. If your business is rapidly growing and you start approaching this point, you should consider hiring more employees. However, as your business expands, it is essential to protect yourself from burnout. Learn how to deal with it before it becomes a problem.
The customers ask for it
You might find your customers asking about new products or locations. In this case, it is time to seriously consider an expansion. If your customers are asking for more of your service, there is clearly enough demand for you to expand. For example, if your customers have to travel a long way to get to your business, consider opening a second location in another hotspot. Then, when that location becomes popular, open another. On the other hand, if your customers show interest in another type of product, try to include it in your offer as well. Both directions are an excellent way to go. If your customers show interest, this is a powerful argument to go through with it.
You start running out of space
Working comfortably is very important no matter what kind of business you run. If your employees are struggling in your current space, it’s one of the clear signs it’s time to expand your small business. Of course, this comes with its difficulties. Moving takes time, and your efficiency and profits will likely be affected. However, a new location could be the breath of fresh air your company needs to grow and prosper. Just remember – when moving your business, hiring experienced commercial movers is always the right choice. They can help you move to a new space in no time. And the less time you spend moving, the fewer risks you expose your business to.
You spot a good opportunity
One of the harder-to-spot signs it’s time to expand your small business is an opportunity that is too good to pass up. For example, if an excellent bit of real estate opens up in a competitive spot in town. Or if there’s a sale on valuable equipment you need for your business.
So, when an opportunity crops up, don’t be afraid to grab it. It is, of course, essential to remember that plans don’t always work out. As such, in these situations, it is also important to stay flexible. Knowing when to fold is just as vital as knowing when to risk.
You have too much money on hand
Keeping extra money on hand just in case is always a good idea. If something goes wrong, it’s essential to have the funds to recover. Too much money, however, isn’t helpful for your business at all. Generally, you should only keep as much cash on hand as you need to run your business for two whole months. Anything more than that, however, you should consider investing in your company’s growth. Of course, expanding your business will take a lot of work, research, capital and planning. But, actively choosing not to grow your business is a terrible idea, as it isn’t a sustainable strategy. After all, the point is to bring in more and more profits. So, if you have too much money sitting in the bank, consider investing it in your business.
When you find the perfect product-market fit
If you find yourself in a position where your business fulfills all of the needs in a particular market, it might be time to start expanding. If your business starts bringing in quick profits and your product is in high demand, start growing your production. When a golden opportunity like this crops up, you don’t have the time to wait and see how it plays out. Immediately start looking for new employees, a second or larger location – anything you can do to exploit the product-market fit you found. You should also consider how social media can further help your business thrive.
Final thoughts on signs it’s time to expand your small business
It can be hard to realize when the right time to expand your business is. After all, an expansion is a risk, and we can’t blame you for avoiding those. However, business expansions are usually worth the hassle. We hope you found this list of signs it’s time to expand your small business help, and we wish you luck!