Starting a business is frightening enough. But, growing your business can be just as terrifying. A common reason for these fears is simply a lack of experience and the unknown.
There’s a level of comfort in maintaining the status quo. And, this also applies to our business. We may be making enough and seeing enough profit as it is, so bother with growing?
But, our potential for growth may be more exciting than remaining the same. And, when we believe that growth is possible, then we can take the necessary steps needed to make that a reality.
This doesn’t mean that there won’t be challenges. As current business owners, we already know how difficult starting a business can be. But, we have to credit ourselves for learning and adapting along the way.
This ability to adapt and learn can be the same skill set that helps us to grow our business. Willingness and vision are also helpful when considering business growth. Setting goals can make the process run more smoothly as well.
Adequate research and a thorough plan can make business growth a reality. Read on to find out why you should grow your business.
Why Growing Your Business is a Good Idea
Many business owners forget that growing their business doesn’t mean doing it alone. As you grow your business, your team is also likely to grow. And, it’s important to choose the right employees and management staff to make business growth a reality.
Hiring new staff members can be a challenge. Of course, there are no guarantees that an employee will stay for the long haul, but there are ways to determine their potential.
To start, set educational and experience requirements. Candidates with consistent work history and longevity at previous jobs are likely to be the most reliable.
Before committing to a candidate, make sure to also check their references. Their references can provide key information into the candidate’s work ethic and how compatible they are with your business.
So, why go through the trouble of hiring new employees and growing your business? Explore the following reasons why growing your business is a good idea.
1. New Revenue Streams
When you grow your business, you also generate new streams of revenue. Small operations can only offer so many products and services. But, larger businesses with more employees and additional capital can achieve more.
By growing your business and gaining new revenue streams, you’ll also be making your business more secure. This is because you’ll be less vulnerable should a specific product or service perform badly. You’ll have other products and services to serve as backups to maintain cash flow.
2. Access to Larger Vendors and Suppliers
Some vendors and suppliers aren’t interested in working with small businesses. They prefer doing business with companies who can purchase in bulk. They will also be more apt to provide your company with discounts because you do purchase in large quantities.
This can help your bottom line, even more, making room for larger profit margins over time.
3. Attracting New Customers
As you expand your product and service offerings, you’ll also be able to attract new customers.
These new customers may not be currently interested in the products/services you provide. But, when your company expands to products/services they are interested in, then they will be more apt to buy from your business.
4. Improved Brand Recognition
Customers tend to buy products from businesses they trust. Small business can sometimes be difficult to trust simply because they lack brand awareness. But, when you expand your business, you can also expand your marketing budget and opportunities.
This, in turn, will increase your brand recognition and attract new customers as well.
5. Ability to Compete
When your business grows, you’ll be able to compete more in your marketplace. This is especially vital in the Digital Age where anyone can go online and start a business. When you grow your business, your marketing budget, products/services, and the ability to perform on a larger scale will also increase.
This allows you to compete with other major players in your industry more effectively.
6. More Freedom
Running a small business requires the business owner to wear multiple hats. They are the managers, employees, accountants, and the custodial/janitorial staff. This type of responsibility can become exhausting over time.
It can also hold you back from growing your business in the first place. If you feel like you’re unable to take on more responsibilities, then you may be concerned about growing your business. But, when you do decide to grow your business, your role won’t be as vast.
Instead, you’ll be hiring employees and managers to complete specific tasks for you. This will grant you more freedom to focus on important tasks. It will also allow you to feel more free to let go of the reigns so you can focus on other areas of your life.
Growing Your Business: Into Action
Once you have a solid plan for growing your business, it’s time to take action. To start, you’ll need to thoroughly analyze your current profit margins. Make note of all your incoming and outgoing expenses to determine the best way to financially grow your business.
It may also be helpful to speak with an accountant before proceeding. After that, it’s time to determine how much each business growth measure will cost. Make a list of all the potential costs and determine how you will finance them.
If you need to get a business loan, then research the steps for doing so. You can also talk with a bank representative to determine the exact steps for securing a loan. They will also be able to figure out if you can currently get approved for a loan.
Other options for financially growing your business include finding investors, borrowing money, or taking out a line of credit. Thoroughly analyze and contemplate which is the best option for growing your business before proceeding. While all business growth is a risk, researching each option and figuring out which is best for you can make you feel more at ease.
Lastly, you’ll need to consider other factors of business growth such as hiring new employees and marketing. It will be helpful to revisit and update your business plan to accommodate for all future changes.
Want to grow your business by investing in a franchise? Check out our franchising options to learn more.