June 4, 2019 | Mason Roberts
Starting a small business is a very vast dream. You can open one focused on pretty much any field, as well as any location or any future goal. This does not mean it will all be successful, though. Many small business owners start their establishment with every intention of growing it. They see their first small business as a steppingstone to something bigger. While, yes, as a business owner you should be dreaming big, and never get too comfortable, but there is always a better time than another to grow your business. If your small business is not ready to expand, and you do it anyway, there is a likely chance it will not survive. On top of this, your existing small business may suffer from your neglect while trying to start another business. All in all, expanding your small business can hurt it if not done right.
There are key factors in deciding if your , or if it is not. Here are some things to review before deciding if small business growth is the right career move for you.
1. Demand For Your Business Is High
Growing your business is not viable if you do not have a high demand in your establishment. There are plenty of things that will help your place grow, but high demand in your business is very important. Even if you weren’t looking to grow your business just yet, booming demand for your business is always great. You should always be looking for ways to improve your business in some way. This is something that can make a big difference for your business, so it should always be on your mind. So, review where your business started. What was the flow of business typically like in the beginning? How many customers did you bring in each week? What were the rates of your sales? Now, compare that to the present day. Are your sales growing? Is the demand high? If the answer is yes, you seem to be on the right path towards expanding your small business. If the answer is no, I would suggest working on your one business first. Learn your craft and bring your customers the perfect product. Once you have accomplished the sales part of your small business, you should be able to start looking into growing it. All in all, the demand for your business should be consistently high before you consider doing anything else.
2. You Could Leave And Everything Would Operate Fine
If you could leave your business for a period of time and come back to everything being in tip-top shape, your business is ready. This simply means that your business is extremely strong. There are different components in ensuring that it is this sturdy of an establishment. For starters, your staff. If you know you can leave and your employees are to be trusted and hard-working, this preaches great things for any other team you will be hiring in the future for your expansion. The people you hire should be able to fall under the title of your “dream team”. If they are not reliable enough for this, then your business is not ready to grow. As a business owner, you should really value the work your employees are putting into your place of business. This is your career on the line, so hire people you trust. This will help you figure out who you want to hire for your expansion and be able to trust to leave your business to help build another one.
3. Your Schedule Is Not Hectic
If you are considering expanding your business, the existing one has to be calm, for the most part. It should not be a crazy mess, still trying to improve it and fix issues. Everything should be in order before you even consider opening another location. This goes hand-in-hand with being able to leave your business for a period of time and coming back to everything being perfectly okay. If your business is strong enough for the owner to leave, the schedule is likely regulated.
Starting another business entail many, many things. For starters, you will need to find a location that is right for you and your target market. If your customers are a generally young crowd, you should start a location in a trendy area. Once you find the location, you need to make it your own. Bring it the aesthetic your business is known for. On top of this, you likely need to recruit an entire staff, along with training them. Also, market your business. Simply put, there is a lot to be done. If your schedule is already initially hectic, you will not be able to give either business your full attention, resulting in both of them suffering. You may want to desperately open another business, but really consider if it is worth it or not.
4. You’ve Been Turning Profit For Some Years
This is an important point. Any business needs to be making a profit in order to be considered successful and really survive. You will generally begin to struggle if you are making no money from your career, just enough to pay your dues. If your first business is not making a profit, your second business won’t either. You may not even have the funds for a second one or won’t be able to be approved for funding. Profit is a large factor in the success rate of your business. It is really proof for said success. When considered expanding your business, you should have a couple of years of turning profit. If you do not have this, your business is not ready to grow. It simply will not survive the financial aspect of it.
If you want to expand your business, that is great. You should work towards everything you want to accomplish. That is the point, though. Really consider if your small business can handle the expansion, and if not, work towards that goal every day. Sooner or later, your small business should be ready. When everything falls into place, go for it. Focus on both businesses, and let them both grow with you.