05 Jan When is it Time to Expand Your Business?
We talk a lot about how finding a great business expansion loan and putting it to use can lead to growth. For business owners, this is obviously a good thing. But what can be done to manage that growth to ensure business owners can actually benefit from it instead of becoming more overwhelmed? Just as important, determining if it’s the right time to expand your business can be crucial to your future success.
Business growth can mean a couple of different things. It could refer to the general effect of higher sales and increased revenue. In many cases, this leads to a second form of business growth: physical expansion through new retail locations or purchasing new equipment. In most cases, higher revenue is only attainable to a certain point without making capital investments. Ultimately, have to spend money to make money, and spend even more to make even more.
Signs It’s Time to Expand Your Business
Capital investments in new retail or storage space, new equipment or additional employees aren’t made overnight. It’s natural for small-business owners to wait as long as possible to make these big financial decisions. However, there are also times when it’s better to strike while the iron is hot. With that in mind, it might be time to expand your business when:
Customers are asking for it
If your business has multiple repeat customers and is having trouble meeting demand, it’s a sure sign it’s time to expand your business. If multiple clients go so far as to ask you to open up shop in a new location or pursue relevant business opportunities, there’s no denying it’s time to grow.
There’s no more room
Physically growing out of your current business location is another sign. At times expansion isn’t really a matter of choice. You may simply run out of space for inventory or are working in cramped conditions. These operational issues require immediate action to acquire additional space. Some companies utilize a business renovation loan to expand literally overnight. This will require your business moving into a larger building facility.
You see an opportunity
Some of the biggest and most successful companies in the world started out in seemingly opposite industries. Toyota is a great example of a company went in a different direction to find it’s niche. The company was known for manufacturing industrial looms at first. However, they branched out into automobiles when they saw how quickly the car market was growing. The businesses that can adapt to changing demands quickly – and intelligently – are often among the most successful.
What’s Holding Businesses Back?
The key challenge in business growth and expansion comes down to timing. Many of these needs require significant capital investments that can only be made when cash is abundant and sales are consistently high. At the same time, no one can predict the future, nor can they know if a big investment will actually pan out.
For this and many other reasons, small-business owners have to turn to a reliable financing partner who can make their visions into a reality. Reach out to QuickBridge to learn more about unsecured business financing that can fuel faster expansion and set your company on a high growth trajectory for the long haul.