For successful small businesses, there often comes a point where expansion is the best option. Change might seem frightening, especially if your business is comfortably making a profit, but avoiding expansion could be a mistake all of its own. There are other mistakes to avoid, too – ones that might cost you time, money, and stress. Here are ten of them.
1: No Real Plan
Having a general idea about where you want your business to go is good, but without a well-thought-out plan, expansion is unlikely to go well. What is your direction? How exactly do you plan on growing your workspace, customers, and employees? Before you put a load of money into one thing, create a solid expansion plan detailing everything from marketing strategies to new product ideas.
2: Doing Everything Yourself
If you are looking to expand in a big way, you can’t rely on yourself or just a small team to handle it. Business growth means bringing more people on board so that you can focus on the big stuff while your team handles the administrative tasks. After all, when brainstorming fresh ideas, you don’t want to be suffocating under a bunch of HR work.
If you want to outsource HR, The HR Dept in Croydon offers support for all your HR needs. With outsourcing, you get the benefit of assigning administrative tasks elsewhere without having to hire a full-time employee.
3: Avoiding Technology
Technology helps businesses in numerous ways, especially when it comes to productivity. By ignoring the latest tech, you fall behind other businesses and end up spending far too much time on otherwise easy tasks. Look for productivity software that makes the day-to-day running of the business easier, and you’ll have more time to focus on growth.
4: A Rushed Budget
When it comes to expansion, you must have a solid budget. Otherwise, you run the risk of running out of money – or not spending enough. Be as detailed as possible, as you can always adjust as you go.
5: Expecting No Challenges
No business expansion is all smooth-sailing, and you must be prepared for that. You will hear the word ‘no’ multiple times, and you might watch a previously great opportunity evaporate before your eyes. It is part and parcel of running a business. By expecting those challenges, you are more likely to push through and try again.
6: Hiring without Thought
Don’t hire the first person with experience that walks through your door. Properly think about who you bring on board. After all, they could be with you for many years! Not only will hiring a poor employee harm productivity levels, but it will also affect staff morale.
7: Saying ‘Yes’ to Every Opportunity
Some opportunities will be hard to turn down, but you can’t accept all of them. Learn to be picky when it comes to offers of partnerships and deals. By being more selective, the opportunities you do run with have a higher chance of boosting your success.
8: Not Understanding the Market
Knowing your target market is essential for growth. It’s not just about knowing your current customers well – although that is important – it’s also about understanding the people you will end up appealing to. That will include the customers you have now, but it could also expand to another market. Do plenty of research on your target market, and you will have more success when growing your business.
9: Not Investing Enough in Marketing
One of the most important things to invest in when expanding a business is marketing. No matter how much effort you put into a product or a tech team, you cannot expect to win more customers without a robust marketing plan. Consider branching out of your in-house team and outsourcing some of your marketing. That way, you can build a loyal customer following while working on the more critical parts of your business development.
10: Expecting Too Much – or Too Little – Growth
Too many expectations can be the death of any business. Expecting your development plans to flourish and bring in tons of profit straight away could leave your business broke. On the other hand, planning for only a small amount of growth could limit your expansion, meaning your business might not reach the heights it potentially could. Look at your previous successes, seek professional financial advice, and make a sensible judgment when it comes to the amount of growth to expect.
Reaching the point of business expansion is always exciting – just make sure you avoid these ten mistakes.
