Building a successful business that lasts for decades is no easy feat. Only about 25% of new companies make it to their 15th anniversary.
But if you’re bold enough to start your own company, expanding a business is another opportunity you can seize. Just prepare yourself to take on a lot of responsibility, especially if you’re growing a business that’s still fairly new.
You’ll need to think about your company’s financial standing and how it can improve the way it operates. Once you’ve made the right business decisions, your company’s profitability will skyrocket. Here are eight tips that will make expanding your business a little less challenging.
Seek Networking Opportunities
If you’re looking to expand your business, it’s important to find opportunities that will let you meet new people and make connections with other professionals. Joining a local chamber of commerce can be an excellent way of doing this.
You can also sign up on platforms like LinkedIn, Facebook, and Twitter so that people who are interested in working with you can easily find out about the services you offer. Put your contact information in all of your online profiles. It helps to have a separate email address and phone number for your business so that you can keep all of your personal and professional correspondence separate.
You need to know what risks you’re taking on, and what the consequences are if things don’t go as planned. Risks include things like price fluctuations, new competitors, and other unforeseen challenges that could affect profitability. There are also some common solutions for dealing with these problems.
Price fluctuations can be mitigated by understanding what competitors charge for similar products or services. Use this information to set a competitive price point that still allows you to cover your expenses.
New competitors can be dealt with by being more innovative and providing a better customer experience. This will keep your customers loyal and prevent them from switching over to another business.
Successful businesses stay connected with their customers and employees. They can provide valuable insight into the business and help you identify areas of improvement, new opportunities, and potential problems.
If you have a customer service department or an employee suggestion box (or both), encourage people to use these tools as they see fit. If not, consider setting up an informal feedback system using something like SurveyMonkey or Google Forms. People will have the opportunity to send in their comments anonymously and you may get more truthful feedback.
Assess Your Finances
You should have enough capital to cover the costs of paying new employees and replacing equipment. You also need to make sure that your business has enough funding in case the economy has a downturn and customers cut back on spending. A financial advisor can help you determine how much money you need to cover these expenses.
If you don’t want to hire an advisor for help, you can make an educated guess based on your current expenses. However, this would probably be inaccurate.
Invest in Training
It’s important to train your employees on how to meet the changing needs of customers and help them grow their skill sets. And, since you’re responsible for managing the growth of your company, take some time to learn something new yourself.
There are plenty of places where people can go for training online. LinkedIn Learning offers paid access to its library of training videos and courses for about $29.99 per month.
Hire a Lawyer
A great way to expand your business is through company acquisitions. This can be an ideal option if you have the cash and know what you’re doing, but it’s also important that you hire a law firm that specializes in mergers and acquisitions. M&A Lawyer is a great example, but there are plenty of other firms that can help you get started with the process.
A lawyer can help you decide if buying makes sense for your company, as well as negotiate all the details related to the deal.
Be Wary of Partnerships
You should be careful not to overload on debt or risk too much of your personal capital. If you’re going into business with a partner, the same advice holds true. Make sure they’re an equal partner and will take responsibility for their share of the company before considering them as an investor.
You should also limit the number of partners in your company. This can help prevent any disagreements from getting out of hand because there will be fewer opinions and fewer people to argue with.
Have a Back-up Plan
Make sure you know what you want out of an acquisition or merger and how much it’ll cost you if it doesn’t work out. It’s important to consider these potential outcomes before making any moves toward expanding your company through this method. Have a plan ready in case things go south.
Make Sure Expanding a Business Goes as Planned
If you’re expanding a business through an acquisition or merger, don’t be afraid to seek legal advice. It’s better to make your potential business partners wait while you plan things out. Leaping into something without a reliable strategy will only lead to trouble.
Our blog might offer you peace of mind during your transition. Many of our posts are about handling massive life changes, and growing your company is an enormous change. Read a few of our articles for inspiration.