What Do You Need to Prepare to Expand Your Business?

Establishing a business and keeping it running can be a considerable challenge. But if you’ve successfully done this, then you might find yourself contemplating an even more considerable challenge: that of expanding the business.

Doing this in the right way requires good instincts, knowledge of your market, and the right preparation. But what does the right preparation look like? Let’s consider a few critical questions you might ask yourself before starting work on your expansion.

Will the expansion have costs associated with it?

In most cases, expanding a business requires an up-front financial outlay. You might need to invest in additional premises, or expand your existing warehouse space to accommodate new stock.

If you’re to absorb the financial strain imposed by these costs, then you might need to take on debt. It’s vital that you determine whether the investment will be repaid.

In some cases, the investment will only be worthwhile if it’s accompanied by a restructuring of your existing systems. If you continually bolt new elements onto your existing systems, then you can be reasonably sure that it will at some point become inefficient. Think about how your business would ideally be structured after the expansion has taken place.

Do you have a timeline for the expansion?

Once you have an idea of what your expansion is going to produce, and how much it’s going to cost, then you can start to think about how long it is going to take. Set out a timeline for your expansion, as part of a business plan, with dates in place for the milestones you’ll reach along the way.

By setting out a timeline, you’ll be able to judge the success of your expansion, both as it’s going on, and afterwards. Make sure that the timeline is viable and achievable before you start the work. If it looks as though there are going to be significant obstacles, then it might be worth delaying the expansion, or rethinking it.

Do you need extra help from an expert?

Since expansion is something that small businesses rarely do, it can be difficult to judge whether you’re doing it effectively. As such, it’s worth drafting in an experienced expert in expansion to help you get it done properly. To deal with any HR issues, for example, you might bring in software that deals with workforce management.

Have you done your research?

A good expansion is often underpinned by effective research. Make sure that the expansion will actually lead to the desired result – whether that’s increased productivity or something else. Finally, advise your staff that the expansion is going to happen, and make sure that they understand the effect it’s going to have on their working lives.