Expanding your business? Think about these first

1. Have I achieved my goals?

Take a good hard look at the targets you set for your business last year. Have you achieved everything you set out to do, or are you quite a distance away? If you haven’t come close to achieving your business targets, expansion is probably not the right move at this point. If you’ve achieved everything you’ve set out to do and are ready to expand, think about investing in services that will make your life easier. If you are moving into a new overseas market, consider setting up a multi-currency account, for example.

2. How will I pay for expansion?

Growing your business is a great way to make it more profitable, but expansion could be expensive. Even if your business is in good financial shape, it’s important to consider the possibility that things might not always go according to plan, and that you might have to dig into your reserves. If expanding your business is likely to yield better revenue but not a significant improvement in profit, it’s probably wiser to sit tight for now. If you’ve decided to go ahead and need extra resources, consider taking a business loan.

3. Is your business scalable?

Expanding your business might make sense if it is an opportunity to increase your business’ profitability. The question is – is it worth taking the plunge? If the profits that will come about from expanding your business far outstrip the costs of doing so, expanding your business is definitely a decision worth considering. If you’re expanding your business with limited resources, think of ways to work with what you have – such as applying for a banker’s guarantee in order to make purchases, secure contracts or relevant government licenses.

4. What have other similar businesses done?

Keeping a watchful eye on the market is a big part of planning your next move. Learning from case studies – other companies that have expanded their operations, for example – can give you an idea of what might work for you. If these businesses have stumbled, think about why it happened so you can avoid the same happening to your company. If you’ve decided to move ahead, think of ways to run a tighter ship than the competition – by implementing more digital solutions and outsourcing non-core functions, for example.

5. Are you and your team ready?

It’s tempting to get caught up in the excitement of potentially expanding your business, but it’s important not to get carried away. Expanding a business means hard work for everyone, and it’s essential that everyone is raring to go. This means thinking of incentives to keep spirits high, and employees motivated to take on the challenges associated with expansion.

Expanding your business is a big decision. Get in touch with our representatives and let us help you with your next step.