Is Your Business Ready to Expand? Find Out The Risks From Expert Financial Advisors
July 21, 2017
July 21, 2017
Perhaps you have been running a business for a few years now, your client base is expanding and your team is growing from strength to strength; is it time to expand?
All signs point to yes, but your master plan could all go down the drain should you not consult a financial advisor prior to expanding.
In particular, startups go into business with growth in mind but expanding too quickly can cause serious devastation to your business. Everything from adding to your existing employees and buying a new office space to increasing your production, services or product lines without consideration can be disastrous. Bespoke Support Network’s financial advisors have created a list of indicators before you expand.
You have the right team in place.
It’s important to consider before you move whether you have enough employees to support expanding your business. In addition to having a strong leader, you will want to have a properly qualified workers who are invested in the company’s success. Without competent leaders and the right employees, your expansion will struggle.
You have a high demand of customers. You know you’re ready to expand when your business starts to gain momentum. That means you’re no longer approaching clients yourself to sell your product and service. Instead, the customers are coming to you! If you notice your company is in the same position, it’s time to start growing.
You have a realistic view of what your company can handle.
You may think you understand exactly when the time is right and what your business can cope with, but you need to recognise when to say no. You need to look at the economic benefits and consider your existing infrastructure and resources.
You have the money. Unfortunately a number of startups fail to properly gauge how their sales cycles dictate their ability to expand, which can cause a serious deficit in cash flow. Experts say that it typically takes at least four months to see a return on capital investments made to expand a business. That means a positive cash flow can give you the confidence to grow as a business.
If you’re interested in talking to any of our financial advisors, contact the team at Bespoke Support Network who can put you in touch with one of our advisors. Get in touch on 0300 303 3441.