Deciding if and when to expand a business isn’t easy. Whether you are a sole proprietor or there are partners involved, deciding to level up requires Moral fortitude and Business savvy. Regardless, it is all possible at the right time. On the other hand, when partners disagree about everything, it can emerge as an arduous task.
Whether Brick-and-Mortar or online, the strategic decision of when to expand is guided by a set of indicators. These indicators, as per research, serve as a compass, helping the leader to confidently answer the question: Are we there yet?
Today, let's explore recommendations from Nerd Wallet's (2023) article on indicators that it's time to expand your business. Rule of thumb: partners are more than 80% of the recommendations are accurate for your business, you might be ready to level up and expand your business:
You have a loyal customer base.
Customers are asking you to grow.
Your business has been profitable for three-plus years.
You have a solid team to support expansion.
Your industry or market is growing.
You have steady, positive cash flow (from your business, not your savings).
You have more business than you can handle.
You see a need for related products or services.
You have operational systems, including business software, that can scale.
You're running out of room — literally.
Additional recommendations by CPR include:
solid business partners that can disagree to agree.
a combination of heterogeneous and homogeneous skill sets is diversity.
consider additional external factors, including the stock market and the dollar's strength.
cultivated a creative work environment.
consider your creditworthiness.
you can meet the demand that comes with expansion
What is your Ready to Expansion rate? Gauge and share yours in the comment section.
Warm Regards,
CeeCee