6 Signs Your Company Is Ready to Expand!
As the business world changes to keep up with a world that is always changing, your company may be ready to make changes as well. A company can take that leap of faith and grow in many different ways.
From more people wanting to buy your products to a growing industry, here are six signs that your business is on the right track and ready to grow.
You’re Meeting Your Metrics
If your business is meeting its goals, you can trust that the numbers won’t lie about how to grow. Start with a common growth indicator, like adding new customers, to see if your company is making enough money to grow while keeping an eye on the costs of adding new customers. Other important financial metrics include the rate of growth in sales and cash flow.
Also, keep an eye on HR metrics like employee turnover, absenteeism, engagement, and satisfaction, as well as e-commerce metrics like the number of shopping carts that are left empty, inventory turnover rates, and the average order value.
You Have a Solid Team of Employees
Many business owners know that the key to growth is to hire and keep a team of reliable employees. If you already have the right people in place and can train them to take on new responsibilities when you’re ready to grow the company, you’re already ahead of the game when it comes to a successful expansion.
Building a great team that you can count on will help your business grow because you can start handing off boring tasks and focusing on growing your business and bringing in more clients and customers.
You Have Enough Capital
Use a 13-week cash flow model to figure out if your business has enough money. This can give you a clear picture of how your finances are right now and help you figure out if you might run out of money in 13 weeks. If there is money, you should think about whether it is enough to start new projects.
Even if you check your budgets every day, you might have to pay for things you didn’t expect when you grow your business. Your business will grow if you have enough cash on hand to cover possible losses and invest in other businesses.
Demand is Higher Than Supply
If you get more requests for services and products than you can handle, you might want to think about growing. If you don’t meet customer expectations, it can hurt your business, but if you can handle more customers, it shows you care about them. This will keep your customers and clients from going elsewhere to do business.
As the number of sales goes up month after month, decide if you need to hire more people or move to a new location to keep up with production. Since you might be growing, now is a good time to ask your customers what they think about your plans to grow.
Your Industry is Growing
In the business world, things are often hard to predict because people’s interests can grow in one area but die out in another.
If there is less interest in your industry or the market has grown, it might not be a good time to grow your business. In times of stagnation or decline, it’s good for a business to stay small.
If your industry is growing quickly and your business is the only one in your area that offers high-demand products or services, it would be a no-brainer to grow your business. When things are like this, growth is almost always a good idea.
You’ve Defined Your Processes
When your business grows, it will help to have clear, written processes in place. When a business is small, it can be easy to talk about goals, missions, and visions.
If these things aren’t written down and given to each employee, they may become harder to understand as a company grows. The better employees can reach their goals, the better the company’s process is explained.