Time to Expand Your Business? 4 Factors to Consider

As an established small business owner, you may ask yourself when the right time to expand is. Whether you’re looking to open another location, hire more employees, or expand your product line, there are several key factors to consider!

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Key Takeaways: Is It Time To Expand Your Business?

Your current space is limited, and your business struggles to meet demand.

Your business has shown consistent profitability and income growth for at least two years.

Your industry is growing steadily.

Your current team can support your business expansion efforts.

Is Your Business Experiencing Growth?

Is Your Business Profitable?

Is Your Industry Growing?

Can Your Current Staff Support Expansion?

Your Business Is Experiencing Growth

If your business growth is pushing the limits of your current space, it may be time to consider expanding.

Questions You Need To Ask:

Do you struggle to store all of your inventory due to limited space?
Is it becoming difficult to accommodate all of your customers due to space restrictions?

If you answered yes, this may be a sign that you should expand. Not only will this help you to accommodate demand levels, but it will also give you the capability to explore additional offerings to aid in continued growth.

Your Business Is Profitable

Consistently increasing profitability is crucial for any small business looking to expand. Short-term profitability can be misleading, so ensure you have a long-term record of success before considering expansion.

Consider the Long-Term

Look for continuous profit growth and steady income over a period of more than two years as a reliable indicator for expansion readiness.

Ready to Take Your Business to the Next Level?

Explore financing options to support your expansion plans.

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Your Industry is Growing Steadily

Expanding your business within a stable, high-growth industry can open up opportunities for new products and increased market share.

Questions To Ask Yourself:

Is your industry expanding with consistent growth and demand?
Have industry trends been stable or volatile in the past?

Consider industry trends carefully—if the market has shown consistent growth, it may be a promising time to expand. If it’s historically been volatile, weigh the risks and opportunities before making your decision.

Your Current Staff Can Support You

A major determining factor in readiness to expand is your workforce.

Expansion is likely well within reach if your team is:

Seasoned
Knowledgeable
Adaptable to Change

A strong and adaptable workforce is critical for successful business expansion. Investing in your employees and their training will help build a team to support you through your business's successes.

Questions You Should Ask:

Is your industry expanding with consistent growth and demand?
Have industry trends been stable or volatile in the past?

Should You Expand Your Business?

Expanding a small business takes time, effort, and careful consideration. Be sure to evaluate your options, and take advantage of the resources and financial tools available to you before making a decision.

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