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5 Signs It’s Time To Expand An SME

Estimated reading time: 2 mins

 

Did you know that starting a business is a lot like being a parent? For the first couple of years of its life, there is nothing more important than looking after your creation. Then, it’s hard to let go and allow them to grow as they age. You see, every entrepreneur wants to build a successful brand that will turn over millions, if not billions of dollars. Still, there comes the point when an owner just isn’t ready to pull the trigger, and it’s damaging to the business’s future.

If these signs are apparent, it’s time to take off the shackles.

Consistent Profit

One good year isn’t a valid reason to expand. Why? It’s because any firm can have a couple of healthy sectors and appear profitable. However, there isn’t a company on the planet that can do it for two, three or four years without doing something right. Profit is all about being consistent, and more than two years in the black is a sign that consistency isn’t an issue. The key is to not allow your heart to rule your head, or let factual anomalies get in the way of the truth. If you’re truly profitable, expansion is on the cards.

Tight Working Quarters

Sure, your current premises may have been good to you over the years, and it may be hard to leave as a result. But, there is no way you can let sentimentality get in the way of the firm’s future. Simply put, a cramped working space is a glaring sign that the business is growing. And, the premises need to change if you’re going to use it as a vehicle for success. There is no doubt that it is hard to find office space which suits your needs. Still, it’s better than the alternative.

Too Much Business

It doesn’t happen often, but there are times when companies have to turn people away because they are too busy. Of course, it’s the right choice when you are operating at the limit. After all, no one wants to suffocate under the weight of their success. Still, the fact is that the business could take on more customers with better resources. By expanding, there is no reason to say no any longer.

It’s In The Customer’s Interest

If the customers have to go out of their way to come to you, it’s time to think about making the process easier. Okay, they do have loyalty, and it should be enough to keep them on board. But, there is no reason for them to traipse from home to the store when you can move closer. As long as the demand is high, a brand new store will make the customers happy which means it will also make a killing.

You Have Loyalty

The reliability of your customer base is something not to underestimate. They might be with you now, but people do move on if they find a better offer. The key is to test whether they are fickle, or whether your customers are loyal. If they are with you until the end, an expansion won’t fall flat. If they’re likely to bounce, it’s best to rethink the strategy.

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About the author /


Simon is a creative and passionate business leader dedicated to having fun in the pursuit of high performance and personal development. He is co-founder of Applied Change, a Business Change consultancy based in the UK. Simon is also an Ambassador for Gloucestershire business. Simon is an Associate Member of the Chartered Institute of Professional Development.

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