6 Signs Telling You It's Time To Expand Your Business

It’s always exciting to think about expanding your business to greater heights. Successfully pulling it off means you’ll attract more prospects, sales and revenue.

The challenge is understanding when you’re ready to begin your expansion. Consider looking into real estate investor management to begin. It’s usually better to start the expansion process sooner than later and the following areas are where you want to place your attention as you get ready to make it happen.

Is Your Management Team Strong?

More stress is placed on you and your key management team members during expansion. Make sure you trust the people you have in place and that you feel they're determined to be with you over the next 3 or 5 years.

Do you feel comfortable delegating more responsibility to your team? Are they reliable and passionate about helping grow the business? If so, these are positive signs that you’re ready to expand.

Do You Have Regular Customers?

A steady and regular pipeline of customers reveals strong demand for your service or product. If you’ve baked repeat customers into your sales model, then that’s the best of all worlds. They prove that people keep coming back and provide needed stability.

Don’t become overly excited if you’ve recently seen a sudden increase in customers. That’s a good thing but make sure it isn’t due to some market fluctuation or seasonal change. Once you see that this new in-flow of business is steady and consistent, use that as further data regarding expansion.

Are Your Customers Demanding Growth?

Pay close attention to customer requests. Have your team log every request inside your CRM system and look for a trend that reveals your customers are ready for you to expand the business.

If you’re a local business, for example, are you noticing that more and more requests come in from customers who drive a considerable distance to reach your location? If so, it might be time to open that next location.

You might hear customers asking for additional services or different types of products. It’s probably time to grow in order to meet these customer demands. You’re looking for the increase in sales from satisfying these new customer requests to help fuel the costs of your expansion efforts.

Do You Have Too Much Business?

When you find that you’re exceeding capacity or your warehouse storage is becoming too cramped due to more orders, then it’s time to get the wheels of expansion in motion. It’s a sign that you can’t handle the amount of business your marketing is producing. Expansion helps handle your volume and usually brings in more customers as well.

Do You Realize Regular Profits?

It’s time to grow if your profits are regularly increasing over time. Take a good look at your net income by subtracting all expenditures from gross income. It’s time to expand when you see a long-term trend of increasing profit after the business pays all its bills.

When you see the upward and consistent growth with profit, this is revenue you can use to expand. As you move through the expansion process, pay close attention to whether your net income continues to rise.

Is Your Industry Growing?

Your overall industry is a good benchmark in making your decision to expand. If your industry is on a growth trend, your own expansion will be easier. You might want to put any expansion plans on hold if you see that your industry is fading or stagnant.

One way you can work toward expanding inside a shrinking industry is to develop newer products and services. If you innovate in this manner, you might find that the new-found revenue allows you to grow while attaining long-term stability.

Is now the time to expand your business? You’re most likely asking this question because you’re seeing positive answers to the above questions. If you are, start taking the needed steps toward growing and attaining greater revenue numbers.