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A small business blog featuring tips to help entrepreneurs succeed in the small business world. Topics include family business, human resources, marketing, money, networking, operations, ownership, startup, taxes and technology.
How You Know It’s Time to Grow
Those of us that own a business know that, at some point, there will be cause for expansion. This can be both exciting and scary. Exciting because it only means that our business is doing very well and demand for the product/service we provide is growing. Scary because it is practically common knowledge that, next to tapping into the wrong market, the transition from a small business to a not-so-small business is one of the top reasons businesses fail.
There are some clear indications that it is time to expand your business, and being able to recognize those signs will help to eliminate some of the anxiety that accompanies such a change, since you will know it is necessary.
One of the first signs that your business is in need of a change is the fact that you are facing challenges and struggles that you have never faced before. There may be an overwhelming feeling that your losing control of the business.
Another indication that your business may be outgrowing itself is that your current management (which may even include yourself) is just not cutting it. As a business develops and grows, the dynamics and needs of that business change. The manager or CEO you hired when your business employed 5 people and your product limited to state wide distribution, is not going to be as effective when the demand for your product expands to a national market and you’ve had to hire 20-30 more employees.
If your revenue has been within the same range for the past two or three years, chances are the demand for your product/service has increase, but your business is not currently capable of meeting that demand. Not only do you have too few employees, but it is likely that many of the ones you already have don’t have the ability to perform at the level the business needs to succeed.
These are the clear cut signs that changes are needed in your business. However, if you are still wary about an expansion or growth, there is one all important question to ask yourself: Can a larger version of your current business perform as well as the smaller version? If the answer is no, then it stay small and simply make some changes to your current system. But, if you feel that the answer is yes, then, by all means, pursue growth.
• BusinessWeek.com: No Man’s Land
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