To every business owner, the goal is to grow the business and be successful while increasing profitability. These are all good goals to have as your start your business. When business owners decide to expand, it is important to plan for growth and be cautious to not grow too fast.
As a new business owner it is often very exciting and exhilarating to watch your company grow and succeed.The best phrase that I preach to new owners is, you have to walk before you can run. With business owners juggling so many things, it’s challenging to slow down to make sure that your bases are covered before you move on either to a larger space or a second location.
When a business grows it often becomes time to purchases that, “2nd location” or the “bigger office”, however many owners fail to look at what that really means.If these steps are taken too quickly or without a plan, these decisions could wind up being the cement shoes that drag you and your company to the bottom resulting in lost profits or closing your business.
It is important to have the right people around you as you begin to slide the chess pieces across the board, to establish a new location.Take your time to properly interview and hire staff that have the same drive and direction as you do. Now more than ever it is important to remember that you CANNOT do it all. When expanding to a new location often business owners must move out of office manager position and into the role of a CEO. Having the right personnel in place to run your current location, while you focus on expansion is a key component to success.
What sparked your idea for expanding to a new location was more than likely the fact that your business was doing extremely well with just one location. The thought of “double locations double profits” often is what people believe as they begin to look for the next big expansion. Is that really the case though?
Be sure to do your homework in the new geographic area where you are expanding.Take the time to do your research. Just because your company is extremely profitable in one location does not mean that it will do the exact same business in another location. Having a financial reserve that can sustain the expansion for several months may be the difference between success or failure of the new expansion.
During any business growth, owners will experience growing pains. Planned growth will allow for business expansion at a slower pace with a well-executed plan.Hiring the right staff to execute the plan can help to make your expansions more successful. Most of all remember, you have to walk before you can run. As you grow, take time to celebrate. Thank your employees and others that have helped along the way.