by Cyndi Morin,
One of the hardest decisions to make in business is whether one should consider expanding his or her company at some point. When a company is thriving, the temptation to grow seems to linger in the mind of many entrepreneurs. As profits accumulate in the business account, the question becomes “should I reinvest the profits into the company and expand?” Every business is unique. For some, expansion can be great, for others it can be a burden that only increases work and expenses instead of profits. Because of this, it is important to consider a few factors when deciding if business growth is right for you. The three most important factors to consider are:
First, what is your reason for wanting to grow your business?
For example, I was fired from my last job. One of my former bosses told me that I would never make it out on my own and good luck finding any clients. So, my focus (right, wrong or otherwise) was to simply start my own business, create a service delivery model that would steal his clients, and expand my company until I was bigger than him! Well I achieved that within my first year of business. But then my priorities changed. I began considering my other reasons for wanting to grow, which became more altruistic in nature over the “I’ll show him” attitude that had infiltrated my original business development plan. So, it’s important to understand why you want to expand.
Second, every business has a “sweet spot” where they can make the most money at the least expense to the company.
Understanding the company budget and internal accounts will help you to understand and find where that sweet spot is. For some it might be staying no more than a one-man show, versus growing into a multinational publicly traded company with thousands of employees.
Third,what impact will your growth have on your clients that you are serving?
For instance, if you have a quaint little mom-and-pop shop that has a dedicated client base who appreciate the ambiance and service of your small company, you might not want to expand into a chain because you may lose the “brand” you have created and therefore lose those dedicated clients. Or you may have standardized services with so many clients that if you don’t expand you will lose part of your market. At the end of the workday, if you think through the growth plan and it aligns with the vision for your company, the right answers will tend to unfold effortlessly.
full article at: http://www.bbb.org/calgary