As your business starts to succeed, it is easy to start thinking about your first expansion. Likely, as you built the vision behind your business, you thought about creating a brand that your clients and customers would love.
Adding people to your staff or additional equipment at the right time can be essential to meeting your new customers’ demands. Now that your business is starting to take off, it is time to consider when you want to expand your business.
This is what you should consider before you get started on expanding your company.
Is your growth sustainable?
As a business grows, there will be some spikes of growth followed by plateaus or downturns. When demand dips, it does not mean your venture is a failure; these are typically the business cycle and will average out over the course of the years you are in business.
Try to measure your profits over the course of a year or more. Often companies see increased profitability during certain seasons, depending on the type of business.
Many successful businesses have one or two short seasons, where they have dramatic growth. It is essential to be aware of these seasons so that you know how well they can sustain your growth during times when business is slower.
Contractors and other temporary workers can allow you to measure the sustainability of your profitability. Temporary staffing can give let you see where you need the most help without the long-term commitment of regular employees.
Just because someone joined your business as a temporary worker does not mean that they need to stay that way. If your profitability proves to be sustainable and your business continues to succeed, temporary workers can make a smooth transition into being regular employees who already know where your business needs the most help.
As you consider expanding your business, it is vital to take a measured approach. Pay attention to how your company is growing and use the tools available to you so that you do not grow faster than what your profit can sustain.