If you have managed to launch a successful business, the idea of growing it is extremely exciting. Expanding your business means that you will have space for more products or services, customers, sales, and inevitably more income. However, expanding your business is a huge step, and it is important to make sure you are ready. Here are three ways to see if you are ready to expand your business.
- Do you have a loyal customer base? First, you should ask yourself if you have a regular customer base. Do you have customers that return for your services? Has your customer base grown steadily over the last couple of years? If these things are true for you, you may be ready to start expanding the things that you offer to your customers.
- Have you been in the green for over three years? Next, it is also important to look at the hard-core numbers. It can take years for a business to become steadily profitable, but it is important to hit this metric before expanding. Once you open up the books and look at your numbers, you should make sure that you have been in the green overall for several years before considering an expansion.
- Is your industry growing? Finally, take a look at your industry. If your industry is expanding, it may be a good idea to expand with it. On the other hand, if the industry is dying out, you may not want to ruin a good thing. If you are in a large industry, the industry can handle the expansion. If an industry is small, however, you may end up over-saturating your clients and losing money in the long run.
Once you are ready to expand the business, you will need more capital for the investment. This capital can come from investors, but it can also come from loans. Traditional and SBA loans are available for business expansions, whether you need to purchase new equipment, new space, or hire new employees. If you are interested in a loan, Aspen Commercial Lending can help.