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Dave Thomas

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How Fast Should You Grow Your Small Business?

Dave Thomas

August 17, 2016


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When it comes to running a small business, there are myriad of tasks and challenges that typically await.

That said there are also many opportunities that owners have in front of them, though making the most of such opportunities is oftentimes the key.

One of those opportunities is to grow one’s small business at the pace they see fit.

Whether that means a speedy pursuit of growing one’s company or taking things rather slowly, the decisions is oftentimes based on a number of factors.

One such factor is how much financial capital the small business owner has.

If he or she has a significant amount of money, they have a little more leeway with which to grow their companies. When money on the other hand is tight, the ability to grow one’s business tends to be more judicious.

So, just how fast should you grow your business?

Review Your Company’s Growth Regularly

In order to have a good handle on how fast to grow your business, remember these tips:

  1. Review your industry – First and foremost, what is going on in your particular industry with other companies? Are things moving along at a rather fast clip or do they seem relatively stagnant? Having a feel for your industry is crucial, especially when you are in one that is highly competitive. So that you can lessen the chances of being blindsided, take the time regularly to review your industry. Are consumers buying goods and services at a fast clip, somewhat slower pace, or altogether not buying?

  2. Look in the mirror – Take a good look at your own business. Are you meeting all the orders and demands of your customers with the current workforce you have? If the answer is yes, along with there being no prime indicators to suggest a major uptick in business in the near future, then adding employees and/or increasing your office space probably does not make much sense right now. On the flip side, a major upswing in customer orders, along with the feeling that you are bulging at the seams with your current workspace, those are signs it could very well be time to both add employees and add workspace. You can do the latter by either expanding your current office space (if doable) or moving into a bigger office area. If you are thinking about one or both, what current level of storage means do you have available? If you walk into some small business offices, they look like people are working out of a closet, little room to maneuver and/or be relatively comfortable. You can alleviate some of this problem by turning to storage units. These can prove very resourceful, allowing you to store important and yet currently not needed items. Whether it is extra office furniture, electronic equipment, paperwork or supplies don’t let the items you are not presently using overtake your current office space. Even though you may feel like paying a monthly storage bill is wasted money, it can in turn be much less expensive than moving to a bigger office space, space that you may in fact not need anytime soon.

  3. Can you do more with less? – Some small business owners see the possibility of actually doing more with less. Do you need all of those employees currently working for you? Sure, most owners do not enjoy the idea of letting workers go, but it could save you money (and your business) when all is said and done. You may in fact discover that you have duplication in a number of areas of your work, duplication that is costing you money. In some cases, you can actually grow your business (and the revenue stream that is coming in) by contracting in terms of eliminating excess.

Whether or not now’s the time to grow the size of your small business is a decision only you can make.

Be sure to weigh all the pros and cons of such a decision, looking to see whether or not you will ultimately come out ahead with such a move.

If the answer is no, don’t rule out such growth down the road.

Remember, it all boils down to timing.


                   



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