It is not selfish to go into business with expansion in mind. However, expanding it too quickly can cause serious implications. As tempting as it may seem, the real signs that your business is ready for the next level includes more than just cash flow and distribution demands. So how do you know you are ready for the next phase of your business?
Here are some questions to ponder and determine if you’re growing on a whim or if your start-up is, in fact, ready to scale:
1. Is there a strategy for growth?
As the old saying goes, ‘If you fail to prepare, prepare to fail.’ Even if you don’t have your entire strategy mapped out, make sure you at least have something planned so you don’t wander off course.
A strategy will help you be realistic about what your company can handle. After all, if you’re spreading yourself too thin, saying ‘no’ can also be a great growth strategy. Having a core team of great employees is important too. If you’re not confident in either their ability or commitment to the company, this is not the time to add more employees and overhead. Instead, focus time and energy in developing the talent around you. Consider creating systems to communicate ideas, needs, and goals within the company.
2. Are you able to cope with the added rules and regulations?
As a business grows, the list of government regulations to which they must comply with also grows. This includes everything from laws concerning consumer and employee data security to minimum wage variances – and these regulation pressures do not disappear. Compliance in a vacuum is hard enough; keeping the same focus when scaling becomes a real challenge.
3. Can you stick with the strategy and never give up?
So you’ve done your due diligence – your plan is set and you have a great team to support you – so trust your instincts and don’t give up when faced with your first few hurdles. Steve Jobs is well known for his ambition and for never giving up. His determination is what lit a fire beneath his every endeavour. So be relentless then enjoy the fruits of your labour.
In summary, you need to carefully weigh the risks and rewards for growth. Do your due diligence and you’ll be better prepared to reap the benefits of expansion. Entrepreneurs are often the type of people who build the ship as they sail it. This works in calm waters but is a whole lot more challenging when there are 50-foot waves, or suddenly one million customers.
Do you have any ideas and strategies in mind to growing your business and want to seek more funds to realise them? Reach out to us and our representatives will be able to assist you further.