Should you be expanding your business? This is a common question entrepreneurs ask themselves frequently. And if they aren’t, they should be. Choosing to expand or even not to expand is a big decision. You need to be confident you are making the right decision for your business and not trying to run before you can walk.
But how do you know if you are ready to expand, and what should you have in place before committing to expansion plans?
Consistency
Before trying to tap into new markets or increase your capacity, you need to be confident you are reaching a level of consistency that currently supports your business right now. Are you able to hit targets regularly? Can your employees handle what you are doing, and have you ironed out any kinks in the processes to ensure smooth production and delivery of products or services?
If the answer to any of these questions is no, then you need to go back to the drawing board and ensure you are achieving consistency in what you are already doing before trying to increase capacity.
Logistics
What are the logistics involved in getting the job done right now? Do you have everything in place for seamless transitions for both incoming and outgoing orders? And what will you need to implement when expanding?
Can your current logistics support your plans, or do you need to move the premises or look for a warehouse for lease to upgrade operations, for example? Look into the logistics of increasing output; what pressure will it put on your systems?
What extra amenities do you need to have in place, and how will it affect your delivery and turnaround times? A comprehensive forecast can answer this question and more to enable you to make a more informed decision on the logistics you need in the place to support growth and expansion.
Staffing
Staffing levels are vital to the success of expansion plans. In the first instance, can your current team complete their current workloads in adequate time without too much pressure? The answer to this will dictate how you move forward. If the answer is no, why not?
What isn’t working, and how can you make it work? Do you need new processes? Is equipment or management in place? Or do your employees need more support? Once you are confident your current staff can meet demands, then you can assess the appropriateness of expanding. Will this increase their workloads too much? If so, do you need to hire and then train employees to pick up the excess work?
Again if the answer is yes, you need to complete the hiring and training prior to increasing capacity so everyone is on the same page and efficient in what they are doing before you roll out the expansion.
Conclusion
Growing your business is something you need to be planning on from day one. But there is a big difference between wanting to expand and being ready to expand. Jumping the gun before you are ready can backfire and set you back years of work. Stop.
Think about what you are doing, assess your performance, and then look at what your company needs to support growth and development to ensure you continue to meet standards without compromising on your core values.
