Growing your business definitely comes with its pros and cons, it’s about deciding whether it’s a good idea for your business. In this blog, we will discuss the advantages of expanding a business, but also how to set realistic goals, identify potential issues and come up with a plan of action accordingly. At the end of the day, you don’t want to run into any financial, staffing or legal issues. So, before delving into the excitement of growth, be sure to read about our tips and tricks to help you grow your business successfully and efficiently.
Advantages of expanding a business
Creating a better business for your customers– The advantages of expanding a business means that you can save money by bringing costs down per unit… stay with me here! You have the opportunity to capitalise on the economies of scale. Simple examples of this include:
- The more you purchase in bulk, the bigger discounts you get.
- By increasing your materials and stock, customers will continue to spend with you, buying additional addons which they would otherwise buy from a different supplier.
- You can reach more customers. If you grow over more areas, you will also be able to reach a new customer base.
- You are able to put more money back into your business. You now can pay your staff more, or offer more services for your customers
- Reduce competition risks- less competition means more money!
Hire more staff and retain your current staff- Advantages of expanding a business includes giving your loyal staff well-deserved promotions. This will encourage them to stay and develop as your business thrives. You also have the opportunity to hire new staff, which means new ideas and insight on ways of working.
More opportunities for partnerships– Partnerships are great – they mean more business and profits! There are also many other pros involving partnerships including gaining companionship and mutual support. Having this support encourages you to work on any faults with ease and motivates you to your greatest potential. The combined knowledge, skills and experience from both parties can expand your business in all different kinds of ways.
Advantages of expanding a business- When to know it’s time to grow your business
When people look to grow their business, it’s usually because they are growing to either overcome problems or to succeed in your business.
Growing to succeed– Identifying when the right time is to grow your business can be tricky and life-changing. Some factors to look out for when considering growing are:
- Your profits are growing and consistently getting stronger- year after year.
- There is a proven demand for your product or service.
- Your available resources easily allow room for growth
Growing to overcome problems– If you’re expanding your business because of competition that’s taking your customers, you could be delving into risky territory! It is possible that this can lead to a loss due to your competition continuing to thrive. If you have decided to grow because of competition, you need to make sure that you have a unique selling point as a focus.
Advantages of expanding a business- Set realistic goals when expanding your business
- When expanding a business, the most important factor that many people forget about is to make sure your goals are quantitative. An example of this could be “sell 10 umbrellas each working day” if you were an accessories business. This makes it clear for everyone to understand and there is no room for interpretation on what the goal means. You will also be able to determine when you’ve reached your goal, meaning you can celebrate appropriately!
- Make sure you reach your goals consistently– If you get into a roll with consistently achieving your goals, it makes it easier for you to stay focused and motivated.
- Create achievable goals– It’s much better to set 3 achievable goals for the week than 5 unrealistic goals unlikely to happen. The positive reinforcement from achieving your goals is much more likely to motivate you.
- Get everyone involved– If you make your goal public to a team, it means you have to face accountability which can be motivating. You also face shame if you haven’t successfully completed these goals. Ask the team involved if they can have updates on where you are with your current goal and whether you’re on track or not.
- Most importantly, celebrate your achievements! This is a great way of ensuring you follow it through again next time. Positive reinforcement is proven to work better than negative enforcement, so make sure you follow this through with style!
Overall, there are many different advantages of expanding a business, all things considered, it can be a great move for your business, staff and customers when you’re ready. If you’re thinking about expanding and moving to a larger office space in Mansfield, take a look at our trendy office spaces today.