Every entrepreneur dreams of scaling their company one day. When starting off, every company’s long-term goal is to work towards growing and scaling into a bigger company that, ultimately, makes a larger profit. However, this is often easier said than done.
There comes a time with every business where you’ve experienced steady growth, you’ve been around for a while, and your company is doing well. Let’s even dare to say that your company is not just doing well, it’s doing GREAT. You may think it may be time to take the next step, to embrace the future of your company, and finally, take a leap to get your company to the next level. It very well may be the right time, but there is also a chance that maybe your business needs a little bit more growth first.
You don’t want to be one of the businesses that fail when trying to expand. Some businesses fail when trying to scale and there are a dozen reasons why. One of those reasons is that they haven’t done their research. Or, they’ve done the research and have taken advice from the wrong people, often resulting in investing time and work into something that turns out useless.
On the other hand, expanding during your business’s earlier days was easier because it was clear it was time to embrace that change. Whether you needed office space, more materials, or wanted to launch a new initiative – you weren’t sitting around asking yourself “why should you expand your business?” – you just knew that the time was right.
If you’re in this position and have come across this article looking for business expansion examples that highlight when the time is right, and information on how to expand a startup business, then you’ve come to the right place.
We’ve compiled the best pieces of advice that you should always take into consideration to determine whether your company is ready for expansion. And if all signs point to scaling, we’ve also included tips on how to do it.
Why should you expand your business? (And is now the right time?)
- Your customers are asking for you to expand
Have your customers been asking you if you’re planning to expand? And/or are your customers traveling a long distance to get to your store? If you answered yes to either of those questions, it may be time to start thinking about opening a second location.
Here’s what you want to do if your customers are asking for an expansion:
- Check out the real estate market to see if there is an opportunity for your company to grow in a different neighborhood.
- Conduct market research to determine what towns need your store.
- Think about what else you can offer your customers (i.e.., what more can you add to your restaurant or store that would benefit loyal long-term customers).
Adding additional physical companies that help grow your business is an excellent way to add to your brand, while also giving the customers what they want!
- Your business is meeting its goals
If quarter after quarter you are ahead of your goals, or directly meeting them, then that is a clear identifier that it is time to speed up your operations. When your business continues to meet goals, that is a sign that you should set larger goals for your company, like an expansion.
If you are doing the opposite and are falling short of your goals, then you aren’t ready to expand. If this is the case, follow these simple, three steps:
- Take a step back to look at your business from a higher level,
- Reassess your existing goals,
- And examine what areas your business is falling short in.
Following those steps doesn’t necessarily mean that you need to scrap all your existing goals, it just means to look at them with a fine-tooth comb so you can help your business get to the point of expansion one day.
- Your business has plenty of cash
If your business has a lot of money sitting in the bank, then that’s a clear answer to your question, “why should you expand your business?” Don’t get us wrong though – it’s always good to have a fair amount of cash on hand for emergencies, but if you have more money than you know what to do with (and more money than your operating costs), then it may be time to expand.
When money sits around, it isn’t beneficial for your business. You should instead invest this back into the company.
- Your business has too much business
Too much business sounds like a good problem to have, but that isn’t always the case! I’m sure some of you can be related to having “too much business” though. It’s the worst feeling in the world to have to turn customers away when your company is rapidly growing, which can feel like your business is out of control.
Here’s what you can do though:
- Turn these extra customers into loyal customers by opening an additional location,
- And maximize your business revenue by expanding.
So now that you know four business expansion examples that show you the telltale signs that your business is ready for expansion, now it’s time to dive into how to scale up your company.
Read on below to learn how to expand a startup business.
- Don’t rush it
The first tip, which is also the best advice we can give you, is to simply take your time. You’re growing a company and that won’t happen overnight. This piece of advice is something you’ll hear often from companies that help grow your business.
When we say don’t rush it, we mean:
- Take your time,
- Allow yourself time to learn the best strategies,
- And allow yourself the time to learn the different approaches you can take with scaling your business.
While we all want this process to unfold fast, the process may be long. But regardless of how long the process takes, it will be far more rewarding if you take your time, and the success will be worth it in the end.
- Be prepared for major changes
With business expansion, comes change – that means you need to be prepared for that change. It’s completely normal to feel anxious when it comes to making major changes to your business, but it’s also important to acknowledge that it’s for the best and your business will grow as a result. It’s especially important to remember this when you have a set plan and when issues arise, causing you to quickly change plans. Remember, change isn’t always bad.
- Don’t stay in the past
Anyone would say they enjoy being comfortable, but that’s the easy solution and being comfortable is often in the past. Comfort has no place when it comes to scaling up a company.
To ensure your business is up to date, ask yourself the following questions:
- Is your tech current and updated?
- Are you using the latest models of products?
- What are your competitors using and can you implement any of that over to your business?
When it comes to expansion, you must be prepared to update everything, especially when it comes to tech.
- Have a strong support base
When you’re scaling your company, you must have a great support base backing you up. It’s crucial that the members of your team that will be helping you are nothing but supportive.
A strong support base includes employees that are:
- And supportive!
Having a team full of employees that exhibit these characteristics will make a world of difference when it comes to expansion. Each member of your team should be a brilliant leader that brings necessary and helpful thoughts to the table with each step.
- Provide opportunities for your employees to advance
A common mistake that companies make is focusing all their attention on scaling the business and not leaving enough room for their employees to advance. This will often result in resentment from employees as they help to grow the company, only to see that they don’t profit in the end. It’s crucial that, when scaling and growing your company, you always ensure that there’s enough room for your employees to advance as well as your business.
So, now that you’ve learned four business expansion examples that indicate it is time to scale up, and now that you know how to go about scaling, it’s time to put that into action!
Here’s what that means for your business
Companies that help grow your business will tell you things you want to hear (and some things you don’t want to hear but are helpful to know).
Overall, scaling is a crucial part of any business when the time is right. It’s always important to ensure that you’ve done your research before beginning and have a strategy in mind. It’s critical to never rush into anything without having thoroughly mapped out your game plan and having an excellent and supportive team behind you; it will make all the difference.