Many business owners start small and gradually expand their business as client numbers and sales increase. If your business is on the up, you may be thinking about taking that next step. If you’re raring to go, here are some essential considerations to bear in mind.
Adjusting your staffing structure
If you plan to grow your business, you may find that you need additional staff members. Before you place a series of adverts online or hang a sign in the window, think carefully about how many people you want to hire and the kinds of contracts you’re willing to offer. Sometimes, having full-time employees is not the best option. If you’ve got a seasonal business, for example, consider the possibilities of offering short-term contracts or working with freelancers. Weigh up options that suit your venture, do some sums, and make sure you can afford to hire extra staff before you invite candidates for interview or offer new roles. To succeed, you need to ensure you find the right balance. You need to be able to cope with rising demand, but you don’t want your staffing costs to spiral out of control.
Adapt or relocate?
If your business premises are no longer suitable, you may be toying with the idea of making improvements or relocating. If everything is perfect apart from the amount of space, it may make financial sense to enhance the current building. It’s worth bearing in mind that if you do make substantial improvements to a commercial property, you may benefit from tax savings that can be achieved through a cost segregation study. If your premises cannot be improved, you rent rather than own the unit, or you need a lot more space, relocating may be the most appealing option. In this case, it’s wise to see what’s available on the market and set a budget for the move before you make any final decisions.
Financing a growing business
It’s vital never to underestimate the importance of keeping a close eye on the books when you run a business. If you have a relaxed approach to accounting, this can prove costly in the long-term and increase the risk of cash-flow issues. If you plan to expand, you need to make sure you can afford to do this. Taking that next step is always a risk, but you should be looking at calculated risks, rather than a stab in the dark. Work out how you’re going to finance that next move and plan in advance. Figure out what costs you’re going to incur as a result of your growth plans. If you’re hiring new people, you’re moving premises, or you’re buying more stock or expanding your product range, for example, you’ll need to ensure these costs are covered.
The majority of entrepreneurs start their careers with designs on expanding and growing their business. If your company is doing well and showing promise, you may be keen to take that next step. If you think you are ready, make plans, ensure your finances are in order and make sure you’re aware of exactly what is needed to turn your vision into a reality.
