Knowing when your business is ripe for expansion

Business-Opportunities-and-Risks

Business growth can be both exciting and trying time. There is the excitement that your company is expanding but that at the same time there is anxiety over the success of perhaps acquiring new clients, employees, and customers or opening a store. During this time, the pressure to succeed is almost, if not more, than that one had when they launched the business.

Expansion requires extensive planning with different moving parts. There are financial advisors, marketers, and consultants among other providing input on how to go about it. We will use a Toronto Cell Phone Repair company wishing to expand to other territories as an example. With that in mind, consider these next steps; not doing so could even possibly mean losing your entire business.

Are you on control of the current business?

When starting a business, all entrepreneurs start out with the dream of their business being a multi-million dollar company. While this is an admirable aspiration, a lot of companies don’t make it that far. In the case of the cell phone repair company, for them, the next move to get them to that place is presumably expansion to other territories. It however quickly becomes problematic when it becomes clear that they are unable to juggle the current business with the new opportunity.

An indication that you’re not ready to expand is if your the team is struggling to meet targets. Your best option, therefore, is to streamline the business processes to be more efficient. Once it becomes clear you can take on additional projects; you can then begin the expansion process. Capacity here means resources, that is, money. Given that the taking on new business won’t pay off immediately, you need to have enough to keep it afloat until you can break even and begin making a profit.

What is the competition doing?

There perhaps more than a handful of cell phone repair shows in Toronto. Therefore, said business should keenly observe what their competitors are doing. The approach of the companies when it comes to attracting new business is likely the same, so one has to ensure that they establish an edge above their peers to get customers’ attention. If one has expanded, observe what made them successful or otherwise and use those to get ahead and avoid pitfalls.

When moving to another location or target market, it will cost less than starting a company from the ground up. Using your current business as an anchor, you can boost your success as a reason for customers to trust you, drawing in those your competitors had. Only ensure that you move into the new territory sooner rather than later before the opposing company establishes brand loyalty.

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