It’s easy to tell when we need to use the shower, and when we need to get a hot meal or drink. Nature has its way of giving us a nudge to do the needful in caring for our cravings. When it comes to business, nature will do no such thing for you. You need to look out for the indices yourself.
At some point, every business will need some sort of expansion in order to meet demand optimally. When a business is managing to attend to an increasing client base with minimal/limited resources so as to make more profit off the cycle, it does it at its own risk. Such could have a negative ripple effect on the business in the long run. Knowing when to expand your business minimizes this risk. So, you may need to expand your business when:
- You are consistently getting a positive Net profit: Imagine you have not made a loss for a good number of years since you started your business; your total liability is consistently less than your asset, then that’s a good sign and may mean your business is ready to go to the next level. You should do some more research, discuss with a business consultant and/or analyst, who will take a look to properly analyse your journey so far, and forecast (using some economical metrics) how the years ahead would be for your business.
- Your client base and audience is consistently increasing and has not dropped in years: A business that has the potential to do well in greater proportions is one that has its roots already entrenched in the pool of its client base. So much so that, there’s a steady and consistent increase in its clientele. For such, you may find that already existing businesses take it upon themselves to refer the business to others. Such a business enjoys so much goodwill and has built a network of client relationship.
- When clients see your service or product as almost indispensable: You know your business is ready to move to new levels when the value it brings is commended, and, in the absence of your service, there’s so much uneasiness from your client’s end. You can tell you are doing something well; you can tell value is being added. When you move to make an increase in your rates, your client are fine with it, as they know the worth of what they are receiving from you.