Congratulations! If you’re reading this article, we can only assume that business is good—and apparently, you’ve got so much of it, you’re thinking about growing. Growing your business can mean more income, more customers, and a bigger impact in your community.
However, it can also mean more expenses, more employees, more risk and a lot more responsibilities. But how do you know if you’re ready to grow your business? Before you take a leap (or ask for a loan), take a look at these 10 signs that now just might be the right time to grow your business.
1. Your business is financially healthy—and growing.
Let’s say you’ve been in business for several years, and things are going well. You’re able to pay your expenses, provide salaries and benefits for employees, and keep up with accounts payable—and at the end of the day, you still have money left over. If this sounds like your business, you’re likely in a great position to consider growing your company. After all, if you’ve done this well at your current size, you may be able to create even greater profits with a larger company. A strong financial track record, consistent income and growing profits are also qualities that will make your business more attractive to lenders, who may be willing to invest in your company’s growth.
2. The same customers keep coming back.
If you’ve got a strong base of repeat customers, it’s a good sign that people like what you’re doing. So, why not do more of it? Repeat customers indicate stability, and they’re definitely the best kind of customers to have. If your list of repeat customers is growing every year, expanding your business may be a necessity in order to ensure you’re able to continue providing the same level of service to your customer base. Which brings us to our next point:
3. You have too much business to handle.
Are you turning down business from new customers, or struggling to meet requests from repeat customers, because you simply don’t have the time or resources to handle the work? No entrepreneur enjoys losing business, but you can only perform the work you have the capacity to do. Unless, of course, you grow to meet the demand.
4. Your industry is growing.
If you’re seeing a spike in your industry’s growth, there’s a good chance your business may be able to grow with it. Of course, you want to make sure the growth isn’t merely seasonal, or part of a short-lived trend. However, if you see the potential for long-term growth in an industry where you are already successful, it may make sense to capitalize on the movement.
5. You see an opportunity and don’t want to miss it.
The most successful entrepreneurs in the world are often visionaries—people who did not merely respond to a trend that was already in motion, but predicted an opportunity before it even arose. Maybe you’ve developed a solution to a need in your community, or you have an idea for a new product or service category. Or, perhaps your customers are asking for a product or service that you don’t currently offer, but know that you could provide. If you see an opportunity, ask yourself if now might be the right time to act. If so, act fast, before someone else does.
6. You’re running out of room.
Are your employees fighting for parking in an over-crowded lot? If you’re a restaurant owner, is your reservation list booked through the end of the year? For service-oriented businesses, are your appointments fully scheduled, with no room for new clients? If so, you may have maxed out the potential of your business’s profitability at its current size. Moving to a larger building, expanding your current space, or opening a new location could open new doors to your business’s growth.
7. You have an acquisition opportunity.
Buying another company, such as a competitor, can be a great way to grow your business quickly. Assuming you’ve done your due diligence and the business you are considering acquiring is as profitable as yours—or has the potential to be—acquisition can be an excellent business strategy. However, if it’s a good deal, it won’t last long. Be diligent, and then be decisive.
8. You need to grow to keep up with the competition.
The only consistent rule in business is that it’s always changing. If you want to be successful, you must adapt or die. Some business owners don’t really want to grow, but feel they must do so in order to compete. Whether it’s investing in new technology to stay current, nurturing innovation to develop new products and services, or opening new locations to compete in new markets, growth is not only aspirational—sometimes, it’s essential.
9. You want to pay your employees more.
This is one of the best reasons out there for growth. Most business owners want to provide a good working environment for their employees, and this also means helping to grow their careers and their success. Giving regular pay raises and helping employees ascend to positions of greater leadership and ownership can increase retention, and improve productivity and results as well. If you want to give your employees more, you may need to grow your business in order to do so.
10. You want to make more money—and you believe that you can.
When it comes down to it, the biggest reason most people want to grow their businesses is to make more money. While lists like this may be helpful, the only way to truly know if you’re ready to grow your business may be to ask yourself. Do you know in your heart and mind that you’re ready to grow? Do you have full confidence that you will be successful? (And, perhaps more importantly, can you convince the bank? How about your spouse or significant other?)
Careful planning is critical if you want to grow your company, but if your business is healthy, your financial standing is solid, and you’ve got a great strategy for growth, now very well may be the right time to grow your business.
You want to grow? We want to help.
Whether you’re seeking funds to hire employees, purchase supplies, or open a new facility, you may need access to borrowed funds in order to do so. Fundomate can help you compare rates from the top lenders in the nation, and identify the best funding option to grow your company.
If you’re ready to grow, we’re ready to help.