Growing and expanding your business seems exciting. It means more services, products, customers, and sales, which translates into more income and profits for you. And for most of the business expansion could mean opening a bigger or another location.
Think back to the time when you opened up your business with a booming idea and a word document. During that time, a need for expansion is fairly apparent and straightforward. However, when your business is further down the road, it is not always so obvious when you should expand and invest more in your business growth.
If you feel like your business is heading in the right direction, then you must seize the opportunity and plan for expanding your small business. But before you consider expanding your operations, it is crucial to understand the idea of expansion in the context of your business. Don’t limit yourself to business growth but aim for development that leads to more than increased revenue. Think big!
Top Signs Its Time to Expand Your Small Business
Are you thinking about grow your SaaS Business? If yes, then here are top signs that you must look out for that show that your business is ready to expand. These signs and tips will ensure that you scale up in the industry without screwing up!
1. Too Much Business to Handle
too much business to handle is not something small start-up businesses need to worry about, but it can become a massive problem for rapidly growing companies and restaurants. If you are having trouble keeping up with your orders and have an overwhelming amount of sales every year, then it is best to expand your business.
If you are struggling to keep up with the workload and increased customers, it is time to hire extra help to meet customer demand. If you are not great at keeping up with your sales and expenses, then hiring one of the best accounting firms in Dubai is exactly what you need to keep track of your business activities.
2. Running Out of Work Space
Whether you are running a restaurant, office, or a production facility, you need room to operate. If your employees are sitting desk-to-desk, or your waiters are bumping into tables at the restaurant, then you may need to think about expanding your business. It could mean moving to a different location, setting up a second office, or renovating the existing place.
If it is getting crowded at work and you are running out of space, it is time to expand your business and look for a place with more extensive square footage.
3. Your Customers Demand Expansion!
Expanding your business can result in generating revenue on a regular basis and to maintain this flow, you need a proper laid-out plan for the services you provide or a product roadmap for the type of product you are going to market.
If you have regular customers, regular cash flow, and continued demand for your products and services, then you must think about expanding your business. If people are saying good things about your brand on social media, then it is a good indicator of your company’s success.
It is time to begin thinking about expansion when your customers start asking about your new location and products. For example, Amazon started as a small online bookstore, which later expanded and became the world’s largest e-commerce company.
4. You have Financial Resources
The business expansion comes with a lot of risks and is expensive; therefore, it requires financial resources. Before taking the big step, first consider how you are planning to fund the expansion, and do you have enough cash and capital fund growth? If you need financial assistance, you can speak to investors or a bank to discuss the potential of your business expansion.
If you don’t want to share your equity with a third party, then it is best to adjust the timeline and the overall growth path of your business expansion. Otherwise, you will risk bankruptcy, so consult an accounting firm in Dubai to look for different loan options.
5. You Have Good Money Management
Keeping track of your expenses and financial records is essential for the successful implementation of your business expansion and growth plans. To avoid losing track of debts and expenses, don’t stick your head in the sand and hope for the problem to solve itself magically. We recommend keeping separate books and hiring bookkeeping services to monitor business health and leakages.
By doing so, you can identify areas that are not generating any profits and can rectify the situation on time. These expert bookkeepers will manage your finances and allow you to focus on business growth and operations.
6. You Have Planned Your Business Growth
When it comes to the world of business, you can’t go about spontaneously without a proper plan. Without a proper plan, you cannot achieve sustainable business growth. As Brian Hamilton says:
“Growth is terrific but good, sustainable growth is much better. It’s much harder to grow well than it is to just grow.”
Therefore, it is essential to have a detailed long-term expansion plan that addresses all the potential problems and both short and long term goals. A good expansion plan includes daily operations, market analysis, financial history, plans, and projection. Ask yourself, have I covered all these areas in my plan?
7. You Have Achieved All your Previous Business Goals
Another key indicator of business expansion is that you have set your business goals and met them all. If you are meeting all your goals and reaching all your milestones in a good time, it might be time to step up your game and expand. If you are not sure how you performed last year, it is time to hire one of the best accounting firms in Dubai to analyze your data and project future growth for you.
When you are planning for expansion, keep the bigger picture in mind and think where you want the company to stand in the next few years.
8. You Have a Good Team Backing you
If you are thinking about expanding your business, ask yourself if your team is invested in the success of the company? Are they willing to work hard to take it to the next level? If yes, then you are good to take the next big step. However, if that is not the case, then take some time and outsource skills and put together the right team in place.
Your company is growing, so make sure to identify your hiring needs, workflow, and requirement before hiring a team of professionals. Identify areas where you can outsource instead of employing full time. For example, you can hire bookkeeping services that are more efficient and cheap as compared to full time hires.
9. The Industry is Rapidly Growing
Industry trends play a huge rule in determining your expansion plans and decisions. Therefore, before making any significant steps, do your research and see how your industry is doing as a whole. Has there been a recent boom in the industry? Who are the key competitors in the industry? Also, speak to people in your industry who have recently expanded their business.
Understanding the industry trends is essential because expanding in an overly saturated market is very risky. Hence, if you are planning to grow internationally, it is time to look at the industry trends of the country and the culture of its national market.
10. You Are Documenting All Business Processes
Business procedures and processes make up a solid ground for business expansion and growth. Efficient and sustainable documenting is the basis of every good business. Documenting all the business processes is essential for running all kinds of businesses, regardless of their industry, size, and location.
Therefore, hire professional bookkeeping services to support you through growth and maintain procedural guidelines.
Ready to Expand Your Business!
Business expansion and growth is a challenge for most entrepreneurs, while some business owners prefer to maintain the current level of business operations because of associated business needs and expenses that come with expansion. However, business expansion is not just about profits. Investing in your company and employees is the key to business growth and boosting productivity.
If you think your business is ready to expand, look out for these signs, and follow these tips to ensure that your company is ready to level up! Just keep in mind that growing a business from a small start-up takes time, as it won’t happen overnight.
If you think your simple bookkeeping will not be enough for you to keep track of the expenses of your expanded business, then it may be time to hire professional bookkeeping services. Don’t hesitate to ask for help when you need it!