Your business is now well established, and you’re looking on up-sizing. Taking this step can be a daunting one, but with this article, I’m going to give you the advice you need to take the leap with confidence.
There may be many reasons for you to decide that you want to expand your business. It could be because you’re clientele has increased, and your work space simply isn’t big enough for what your business needs.
How to begin the process
Firstly, you need to think about how you’re going to upsize. Jumping in feet first to a much larger enterprise could damage your business, so it’s best to gradually introduce newer and better things. For example:
- If you need a larger work space, then find that space and move into it. Let your business expand even more before taking any more steps.
- Taking on employees can benefit and damage your business all at the same time. The workload will be spread making everyone’s lives easier, but the profits made will decrease because of having to pay wages. Try employing people one by one and again let your business grow and your profits rise. Then you could employ again.
You will also need a business plan for your services. Develop what you can offer wherever possible and add new services for your customers. For example:
- If you run a coffee shop and you’re expanding, think about adding different kinds of coffee and some snacks to sell too.
- Make your own recipes and use that as a selling point.
Another thing that you should do is to take a look at the machines or programs you use. Are there better ones on the market? If so, it will benefit your business in the long run to upgrade to the best. For example:
- Web designers use programs on their computers to design what they need to. Upgrading their pcs and using a better program may bring more profit to the business.
- Hiring IT consultants to check things through for you will benefit you.
Should I up-size if I’ve not made any major profit?
Statistics say that businesses don’t make much (if any) profit in the first year. They also state that most new businesses fail within the first 12 months of trading. If you’re still in your first year of business or have just got past the one year mark, then that’s great!
In short, yes. You should continue with what you’re doing. Taking your business further may seem like a challenge, but if you’re able to continue going financially, then it’s worth sticking with it because the profit will come. Think about all of the large companies in the world. They all started out as small start up businesses and have become successful by sticking with what they’re offering and constantly improving their services. They have become trusted names; this is what you should aim for.
Good luck with expanding your business!