Small Business Growth: Is It Time to Make the Leap?
You’ve watched your small business become more popular, more profitable and more stable recently, and now you’re wondering if it’s time to start expanding.
Find out if your company has what it takes to support growth by asking yourself these questions.
1. Is Business Booming on a Consistent Basis?
A consistent increase in sales is a good indicator that people trust your business to meet their needs.
When you get to the point where demand exceeds supply on a regular basis, you need to consider hiring more employees, offering new products/dishes or expanding your building.
Before you do, however, check your sales and cash flow records to ensure that these increases are sustained and not the result of seasonal cycles.
2. Do You Have an Exceptional Staff?
To have the support required for sustained growth, you need a strong team of employees.
Dedicated, hard-working staff members who care about the future of the company and who are willing to do what it takes to bring it beyond its current incarnation are a key part of successful business expansion.
3. Are Customers Asking for More?
Customer feedback can tell you exactly what people are looking for from your company.
Take note of repeated requests for new products/menu items or shorter wait times.
People who come a long way just to shop or dine at your location may want to know if you’re planning to open another establishment closer to their hometown.
4. Can Your Cash Flow Support Expansion?
Analyzing recent cash flow records is helpful in determining the financial stability of your business. Look at how much cash you consistently have on hand, and compare these figures to the calculated costs of expanding.
Positive numbers mean that you’re ready to go without worrying about finding yourself short of money before fulfilling your vision.
If you’re worried about a short-term cash flow issue due to the expansion, consider taking out a Working Capital loan. Made with local small business owners in mind, a Working Capital loan gives you a quick infusion of cash to stabilize cash flow and fund an expansion project.
5. Do You Need to Spread Your Wings?
When your employees start tripping over each other or you have long wait lines, the next logical step is to either renovate your current location or open a second one.
Physical expansion increases comfort for both customers and staff, and it gives you more space to push into as your business continues to grow in the future.
6. How Close Are You to Meeting Goals?
Meeting or zooming past your projected goals on a regular basis means it’s time to set the bar higher.
Whether you incrementally increase production, develop a fresh product line or add new dishes to your menu, these small steps will show you whether or not your company can handle a more ambitious expansion plan.
Continued success also strengthens consumer confidence, which is likely to bring in even more business.
If you’re still anxious about taking the next step with your small business, consider padding your finances with a business line of credit. When you are approved for a line of credit you can tap it at any time, but don’t have to touch it if you don’t need it. You only pay interest on the money you withdraw and the interest is tax deductible!
If you discover that your company is ready to grow, don’t hesitate to get started. Set new goals, draw up a plan and prepare your team to start moving forward toward an exciting new horizon.
Talk with a small business financing consultant today to answer any questions you have about obtaining a Working Capital loan or Line of Credit.