When Should You Think of Expanding Your Business
A growing business with a steady income takes years of hard work, expertise, and perseverance. As more than 90% percent of businesses fail within the first five years, it is a great accomplishment to have consistent growth in revenue, customer base and trust of your clients.
It is time for you to think whether or not this is the right time to take the plunge and grow your business to new locations or a wider range of products or services. This is an opportunity to meet your personal and professional financial goals as well. However, it is a huge undertaking. Therefore, you should know when it is the right time to make this decision. And you must also be aware of the added responsibilities and financial risks associated with growing your business. With all these aspects in mind, let's find out the telltale signs that you should grow your business.
1. You Are Performing Well Financially, Even During Off Seasons
Whether your business is seasonal or not, there are always some months that perform better financially than others. Usually, you will notice a spike in sales during the festive seasons. Therefore, your ability to withstand slow seasons says a lot about your business and workflow. It indicates that you have a better grasp of financial management aspects, have enough cushioning during fewer revenue quarters and have a good workflow to make all this possible. If you are able to sustain well even during bad quarters, it means that you are doing something right, and it might be time for you to open more outlets or expand your business.
2. You Have A Good Idea Of Competitor Performance
You should be aware of how your competitors are doing. A good accountant can help you with competitor performance analysis to guide you through your next steps. If you can figure out ways to expand your business and sustain well in a competitive environment, it is a good idea to go for it. Your accountant can help you work through the various risks associated with the undertaking. Also, do not overindulge in such prospects if the industry will be obsolete in the near future.
3. You Have A Good Risk Taking Ability
There is one thing that not many people acknowledge. Having a successful business entails within itself the ability to take well-calculated risks. It is much easier said than done. Therefore, only a handful of people are successful in business ventures. So trust in your risk-taking abilities before deciding if you should go ahead with newer growth prospects for your business.
Consider MAS Partners for your small business accounting needs
We have a wide range of experience specifically geared towards the needs of small businesses. Our small business accountants in Sydney and Zetland can provide key performance indicators analysis, cash flow forecasting, competitor research and much more so that you can decide what is best for your business. Contact us here for more information.