Starting & Growing Your Business

 

Expanding Your Business

First Steps

If you are considering expanding your business, you are being presented with similar issues that face other firms that are considering expansion. It is important to consider both the upside and the downside of the move in your decision making and evaluation process.

What does it mean to expand your business?

It could mean:

  • Taking on an extra product line
  • Taking on one more customer
  • Deciding to buy more equipment or tools
  • Moving from one location to another
  • What issues should you be considering personally?

Why do you want to expand?

What will be the effect on you, your personal life, and your family?

Remember:

  • With expansion will come more potential for profits and potential for problems.
  • It could possibly mean more time away from home and sacrifices of family.

Will you still enjoy the business?

Will you need to invest more personal financial resources into the business and do you have, or want to risk it?

How do your expansion plans fit into your shorter and longer term business objectives?

  • It will depend on your motivations for starting and operating your business from the beginning.
  • Will it give you the extra financial return you may want and/or need?
  • Is it one more step in your long term plan?
  • Is the profit potential and return for your time and investment worth the effort?

What are the operational considerations?

  • Is there a market opportunity and will there be a market reaction to your expansion?
  • Have you researched the idea?
  • Have you a promotional plan?
  • How do you plan to make the potential customers aware?
  • Will there be equipment purchases?
  • Will you be building your inventory, storage?
  • Will renovations be required?
  • If you have a current distributorship or franchise agreement with a company, are there limitations to the products/services you may want to add?
  • Are there municipal licensing and other regulatory limitations?
  • Are there joint venture opportunities?
  • Do you have the management skills? If not, can you/will you acquire them?
  • Are there employee considerations?
  • Have you established the costs and source of funds to make your plans work?
  • Have you done a cash flow/budget analysis to evaluate your idea?
  • Do you have a timetable?
  • Do you have a business plan (PDF Document)?