Just the idea of expanding your business is quite thrilling – after all, it means more revenue and higher profit margins for you, and more offerings and lower prices for your consumers. Besides, if you have a physical setup, expanding your business might mean enlarging your current space or opening up a second location.
However, it is vital that you do not make an impulsive decision to expand, and only begin the process after you are certain that your business is ready for the next level. In this blog, Aron Govil will discuss a few telltale signs that are indicative of a business ready for growth.
Signs that your Business is ready for Growth as per Aron Govil:
Indication 1 by Aron Govil – You are struggling to Fulfill Demands:
Perhaps the most obvious indicator that your business is ready to grow, is that you are getting more business than is possible for you to handle.
However, Aron Govil cautions business owners to track the revenue numbers over several months: sustained growth is different to having an exceptionally-good month, particularly if that month coincided with a holiday or some special event. After all, you must be confident that the appetite for your product/service and brand is genuine, and not just a fluke or a one-off occurrence.
Indication 2 by Aron Govil – You are Short of Space:
According to Aron Govil, the need for expansion is sometimes indicated by a literal need for expansion. In other words, your current physical space is not large enough to accommodate your business operations. For instance, if you have enough employees to deal with the increased demands, but not enough room for all the employees to work comfortably, you should start looking at a new, larger space (or consider expanding your current one).
Indication 3 by Aron Govil – Your Industry is Expanding:
If the sector or industry in which you operate is growing, it will be easier for you to expand your business alongside it.
On the other hand, if the industry is stagnant or on the decline, expanding is probably not the best idea and you might actually end up losing your money. This is because such an industry might not be able to generate enough demand for you to cover the costs of the larger business and still generate a tidy profit.
Having said that, businesses operating in a declining or stagnant industry can still grow through diversification; diversification is when a business expands by offering completely new or different products to what it currently sells. Aron Govil suggests coming up with business ideas that will allow you to diversify your risk and future-proof the business. The new services and products can provide you with the revenue and the launching-pad that you need to grow your company further.
To sum up, growing your business can pay (literal and figurative) dividends, but only if you decide to take this step at the right time. It is important to keep in mind the above indications by Aron Govil, and use them as a compass to determine if your business is primed for growth.