Once a business becomes established, the next step tends to be taking it to the next level or growing the company in some way. Just as teenagers experience growing pains when they grow too quickly, it’s possible for your company to experience some problems if you try to expand too rapidly. Before you decide to go to the next level, check in with your business to see if you are really ready to grow.
How Are Your Products or Services Doing?
One thing to consider when deciding whether or not it is time to grow your company is how the products or services you offer are performing. If you run a medical practice, do you have more patients calling for appointments than you have time to schedule? If you sell products, do you have customers asking for variations on what you offer, such as a skirts when you primarily sell pants? Has your company recently landed a huge client, meaning that you’ll need more help and support to manage the account?
Do You Know What You Can Handle?
Figuring out your company’s current limits will let you know if you need to grow. For example, if you have more patients than time on your calendar, you may consider hiring an associate to take some of your patient load. Understanding your company’s current strengths and weaknesses will allow you to plan for growth in a way that addresses those weaknesses and builds on those strengths.
Is There Money in the Bank?
Before your business can grow, you need to have a firm grasp of its financial health. If you received financing to start your business, have you been able to repay it? Does your company have enough cash on hand to meet the increased demand that can occur when you expand the business? Do the business have enough capital to cover the expansion? For example, if you are hiring a new employee, is there enough in the budget to cover that person’s salary and benefits? Do you have a backup plan that will cover your business’ financials in case anything goes wrong with the expansion?
If you aren’t working with one already, a virtual CFO can provide you with the individualized guidance and tools you need to oversee your company’s financial health through an expansion.
Do You Have a Plan in Place?
As important as having the capital and financing to fund your growth is having a plan in place to guide you through the process. Your business plan should outline the best ways to grow your business and the best route to take. The plan should include ways to get funding or financing to cover the cost of growing the company, as well as the steps your company will take to expand for the lowest cost and with the best results.
Your company’s growth plan should paint a clear image of the optimal ways to use the resources it has currently. As your business grows, it’s important to revisit the plan and make sure the company is staying on track. If your company has moved off course, the plan should help you figure out how to get back on track.
Do You Have a Strong Support Team?
One final question to ask yourself before deciding to grow your company is: do you have enough support? Support can come in many forms, from a team of employees are ready to move to the next level with the company, to outside vendors and service providers, such as a virtual CFO, who can guide your business through the expansion. You also want to confirm that you have the support of your customers as you start to grow your business. In many cases, customers will be the ones pushing for growth, especially if they like what the business has to offer.
It is very easy to get lost in the excitement of taking the next step with your company. For level headed guidance and support as you move to the next level, contact New Direction Capital today.