Every business owner aspires to get to a point where their business can develop exponentially, but the truth is, not every business is ready for that kind of growth. From cash flow problems to a lack of skilled labor, there can be many hindrances to successful business growth. You’ll need to be sure that you’re prepared for it, and there are several ways to figure out if you are.
If you’re interested in scaling your small business up, here are some signs to look out for to know when it’s time to do so.
You’ve developed a clear strategy
Scaling your business isn’t something you can decide on overnight. It takes months, even years, of preparation, and you’ll need to have a solid plan to show for it. Ask yourself: Do you already know who your target market is? Have you considered hiring outsourced bookkeeping services or outsourced marketing services to take the pressure off of your core team as you grow? Have you identified any major hindrances to your success and how you will address them?
If you’ve thought about these things and already have a clear strategy set up for your plans to expand, you might be ready for the big change.
You have a capable and trustworthy team
Your business is only as strong as the team behind its operations. A well-functioning team with members who bring unique strengths to the table, and can hold their own even without your guidance, is a key indicator that your business is ready to expand. Talk to your team and familiarize yourself with their goals for the business.
If your team members have expressed their desire to stay for the long haul, then you have a capable and trustworthy team that you can depend on as you expand your business.
The demand for your services exceeds the capacity
There will come a time when your business will have more clients and orders than you can handle. If you find yourself having to turn away clients and turn down orders, there are only two ways you can address this situation — you can keep declining more work, or you can expand your business to accommodate more labor and equipment to keep up with the demand. This is the ideal time to think about scaling your business.
You have a strong cash flow
When it comes to scaling up, you have to be prepared to put down a large investment. If you’ve had steady profits over the course of several fiscal years, this is a sure sign that you’re prepared to take the next big step. In some cases, you may need to take out a loan to supplement your expansion, so you should also have a dependable financial track record to demonstrate to a bank or an investor.
You’re aware of the regulatory issues
The bigger your business gets, the more government regulations you have to comply with. You’ll need to familiarize yourself with the many regulatory issues that come with business expansion before you can say you’re ready to expand. You should also be prepared to fulfill and comply with all of these legal requirements.Scaling your business can present lots of wonderful opportunities for your business, but you have to be prepared for all the many demands that accompany it. If any of the aforementioned characteristics apply to you, then scaling up is the right choice to make.
