A string of good fortune in sales and income can tempt any small business owner to consider growing their business. An unexpected spurt of sales or growth can provide the financial resources to take that leap into expansion, whether it be expanding services or taking on new products. Yet before any decision, it’s good to consider possible problems caused by rapid growth:
— Hiring new employees requires more office space. Can you sustain your commitment to a higher lease amount or the expense to build out?
— Will new employees create staff turnover due to competition, hurt feeling of being passed over, or unusually heavy workloads?
— Will expansion hurt employee morale? A shortfall of cash to meet expansion costs could mean that workers must generate more income, creating a burden on all employees and risking the loss of experienced workers.
For business owners experiencing rapid growth, it essential to understand whether the growth is temporary or permanent, for example, the result of demand for your product or service or a local scarcity due to a competitor’s closing. Regardless of the reason, expand sustainably…that means, find a professional business adviser to help you:
- identify your goals
- understand the key phases of product life cycle
- extend the skills and capabilities of staff and management
- negotiate complex deals and contracts
- minimize any business risk
At DL MoneyMatters, we wish all our customers good fortune, growth and prosperity!