3 RULES TO LIVE BY IF YOU’RE THINKING ABOUT EXPANDING YOUR SMALL BUSINESS
If you own a small business, one of the most critical decisions you’ll inevitably have to make is choosing how, and when, to invest in the company’s growth. Once a small business establishes a reliable stream of sales revenue, the next logical step is to invest in some form of expansions so as to multiply sales. This expansion usually means spending money on more equipment or resources that make it possible to accelerate operations. While all of this seems like a straightforward sequence of events, small businesses don’t always have the flexibility to invest in growth without facing financial limitations. Which begs the question, what is the right approach to take for small business owners seeking to expand in a cost-effective way? Here are three important factors to consider in order to spend efficiently on expansion:
1. Do Some Reflection: When a business is brand new, the majority of its owner’s expectations are based on hypothetical assumptions and theoretical projections. With a little bit of experience under your belt however, there’s less need to depend on speculation to make decisions. Study your company’s past performance in order to decide on what works and what doesn’t, then invest in what works. For example, if a certain brand of equipment served you well, it would be a good idea to purchase more of it as part of your expansion. Similarly, if a certain bran! d of equipment ended up impeding performance, replace it with a better alternative as part of your expansion.
2. Be Strategic About Paying for Expansion: If you’re ready to acquire more assets for your company, buying them isn’t the only option that can gain you access to them. Sometimes it can be more cost-effective to lease, or rely on subscription services in order to take advantage of resources that can boost your business. Don’t be afraid to think outside the box in terms of your window shopping. Take some time to figure out whether any new assets you require should be a long-term investment and then calculate what the best acquisition approach should be.
3. Don’t Forget to Budget for a Learning Curve: Anything new that is introduced to a business takes time to assimilate into the cycle of operations. This is true either for tangible, or intangible assets. For example, introducing new ideas or procedures requires staff to receive training. Similarly, it takes orientation and practice for employees to gain proficiency using new software or equipment. If you ever decide to introduce something new to how you do business, don’t expect it to take off without a little grace period to get used to the changes.
The ultimate goal of any business, however big or small, is to achieve sustainable growth which eventually leads to profits. Always keep in mind that the growth of your business depends on how tactical you are as an owner. If you take the time to analyze your past experiences, this puts you in a better position to avoid mistakes and capitalize on the positive aspects of your entrepreneurship. If you like what you just read from our blog, you’ll love the various informative workshops and events listed on our website and social media. Whether you’re interested in personal development, or overall improvement of your business, give us a call at 1 (888) 823-7757 to find out how The RISE Programs Academy for Business Coaching and Leadership Training can help you break past your daily struggles and start soaring in success.