4 Things to Think About When Expanding Your Business
If you’re considering expanding your small business, that likely means that your business is in a relatively good place. So first of all, congratulations! Running a thriving — or even surviving — business in this day and age is no easy feat.
Now, it’s time to determine whether or not you should go through with expansion. While it may be tempting to assume that expansion is logically the best move for your business, you must come to the process with an objective approach. After all, it’s your (and your employees’) livelihood on the line, and rushing your growth could put you in a bad position.
That said, maintaining the status quo for too long can also harm your business, as you don’t want to get left behind by competitors and/or get snuffed out of the market. That’s why we’ve provided four considerations for business owners who are thinking about expanding — from evaluating the timing to working with business brokers like Ivan Lilov.
1. Keep up with the now.
Expanding your business is a big deal, and it’s a complex process that will consume much of your time. That said, you must make sure that you foster the current success of your business as you prepare for the future. It’s likely that this will involve working even when you’re away from the office, such as responding to clients and communicating with team members on various tasks and projects.
Working remotely will require you to have certain equipment. For example, if you currently don’t have a laptop or tablet that operates at full capacity, it may be time to invest in one. By utilizing online deals and savings opportunities, you can save a significant amount of money on laptops and tablets from numerous manufacturers. You’ll also need a good desk and ergonomic chair, which will help you stay comfortable and productive during long work hours.
2. Check the timing.
Just because your business is doing well doesn’t necessarily mean it’s time to expand — though it can be a good indicator. It really comes down to what you envision for your business. If you have dreams of widening your reach, you have regular customers, you’re seeing a consistent profit, and your industry is steadily growing, it could be time to expand. And if you’re attracting more business than your staff or current space can handle, that’s another sign that it could be time to expand.
3. Assess demand.
In order for you to have a successful expansion, there must be demand for your service or product in the markets you are considering. The simplest way to evaluate potential markets is to research Google Trends. If you sell products, you can also review online marketplaces to see how well and how quickly similar products are selling. Moreover, consider creating surveys and focus groups to get an idea of what the customers themselves think about your idea.
4. Don’t rule out selling.
Finally, expanding your business and maintaining your status as the owner is not the only route to strengthening your position as an entrepreneur. If you have other dreams that you would like to pursue and you feel like you’ve given everything you have to the business in question, you might consider selling it.
Along with working with an expert business broker like Ivan Lilov, you want to ensure you find the right buyer. This means asking each potential buyer about the kind of business they’re looking for, how familiar they are with the industry, and what their timeframe is for buying, among other factors.
There comes a time for most business owners to choose whether or not to expand their business. If you find yourself in this situation, remember to consider the steps listed here and to work with a top-notch business broker if you decide to sell. This will be among the most important decisions you ever make as an entrepreneur, so whatever you do, take the time to research and prepare accordingly.
Are you thinking about selling or buying a business? Contact Ivan Lilov today to get expert advice and/or brokerage services! (813) 215-6801