Tell-tale Signs You’re Ready to Grow Your Business
As a business owner, you may be excited to start growing as soon as possible. However, if you expand too soon, the company may not perform well or earn enough money. Here are five signs to alert you when your business is ready to grow:
1. You Can’t Keep Up with Customer Demand
If you find yourself having more business than you or your employees can handle, it may be time to consider expanding. To accomplish this feat, you can increase stock, hire more staff, or move to a larger location to increase production. As long as your inability to serve clients on time is not caused by inefficiency or poor time management skills, an increase in demand for your products or service is a sign that you need to expand.
2. Positive Cash Flow and Profits
Positive cash flow and profits for three years or more are an indication that your business is doing well. Your business model could be applied to other entities with the same results. If making more money is your goal, then you should consider expanding if your current business is making you regular profits.
3. New Industry Developments
If your industry is growing or experiencing new developments, it may be time to expand your business to remain relevant. Growing is especially necessary if your market suddenly expands due to factors such as an influx of new residents into your area or customers changing their purchasing behavior. Expanding may be necessary to keep your business afloat. It’s important that you keep track of market and industry developments and adjust accordingly.
4. Increased Workflow
Increased workflow is usually the result of customer satisfaction in your work and the resulting referrals they make, which means increased workflow for you and your team. To avoid compromising on service to your clients, consider expanding your team, increasing inventory, or moving to larger premises.
5. You have a Solid Team
As you look at your current team, do you imagine that they will be there with you in five years? Are there key players that are going to help take you to the next level? Or do you see that there are some gaps that you need to fill? If you need to fill a few slots, hire strategically for team members who will help you reach your growth goals.
The Bottom Line
If you see that your business is displaying the signs in this article, then it may be ready for expansion. Take care of the most important needs first to make the transition easier for employees and customers. After growing, make adjustments as needed to ensure stability for your company.
About Universal Funding
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.