It is the inevitable lot of every successful small business to undergo a period of rapid growth and expansion. Traditionally, this is a transitional period in which you will discover whether or not your company is going to sink or swim; will a business that has been successfully implemented to a narrow remit of customers stand up to scrutiny on a larger scale, or will greater exposure and custom lay bare essential failings and oversights? It is a common fear, and one that you must come to terms with if you are looking to expand; but is expansion really the right choice for you? Here, we look to explain some of the inherent risks and potential benefits on offer to expanding businesses.
Exposure can act as a double-edged sword where small businesses are concerned. Naturally, greater exposure means a larger client base and more custom, which in turn allows for expansion to continue exponentially. Word of mouth and reputation are the keystones upon which most successful businesses are built; with some companies, such as Hoover vacuum cleaners and FedEx delivery, becoming so ubiquitous that their brand name is now a generic term for the products or services they produce. However, inviting a higher frequency of business will in turn expose your business practices to considerable duress. Can your company cope with a significantly higher level of demand? Small businesses can get away with a little mistake here and there, but when you’re an emerging force, expect to be scrutinised on a much broader forum than ever before.
Finance & revenue
It goes without saying that as your business grows, attracting more clients or customers along the way, your income will expand too. This is tied in to the nature of exposure; more well-known businesses are seen as being more desirable and can charge more for their goods and services. A larger company will inevitably necessitate higher overheads, and it’s true that you must speculate to accumulate. Many find the idea of taking a financial gamble in order to push their company into a higher circle of business extremely daunting, and the risks can be great. Fortunately, there are services available to offer financial help to those looking to make that push.
Staff and premises
A fledging business is liable to undergo swift changes in both personnel and headquarters. A small manufacturing plant manned by a handful of people may have been perfectly adequate at first, but you won’t be able to match demand if you don’t look to increase your output. Moving into a larger premises and hiring more staff can be a necessary step to match the demands placed on your emerging business and will allow you to expand further if custom dictates you may do so. This can be seen as a significant gamble, however. If things don’t work out, your expensive new office space is going to be a considerable drain, and with more staff on your payroll, you’re responsible for the welfare of more people than you may have bargained for.
Expanding your business is of course a risky endeavour, but you can’t win the raffle if you don’t buy a ticket. The benefits of expansion are massive; more revenue, influence, exposure and reputation are there for those prepared to make a go of it. If you’re still unsure as to whether it’s the right move for you, take a look at some of the ways in which our invoice finance services can help; it just might change your mind.
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