How do you know when it’s time for business expansion? Sometimes you can’t see the answer to the question right away. You want your business to grow without putting yourself in a high-risk situation. How can you deem whether it will fail or be a booming success?
There are questions you can ask to help determine whether it’s time to expand or not. Keep reading to see 13 questions you should ask yourself if you’re really considering business expansion.
1. Where will you expand?
You need to determine where you plan on expanding your business. Expanding into a country with similar consumer needs and client base will help limit risks, as you know the market has a need for your product or service.
2. How will you handle finances?
Business expansion is impossible without the ability to handle finances and payroll. Outsourcing payroll has become an increasingly popular option, especially for small businesses or businesses that are expanding.
3. How is your business unique from competitors?
Consider if there are any competitors offering the same services or products as your business. What makes you different and why should a consumer choose you over the “other guys”?
4. Are there new laws or regulations you should be aware of?
Different countries have different laws. If you don’t comply with them, you can find yourself in a significant amount of legal troubles. Ensure you know the regulations of a country before you expand, and consider working with a PEO firm for further assurance.
5. How will you maintain relationships with your current clients?
Did you know 67 percent of customers would churn if they encounter a bad experience with a company? Have a clear plan in place for maintaining relationships with your current customers before expanding your business.
6. Do you have enough cash flow for expansion?
If things go south, do you have enough money saved to help with damage control? If things go well, do you have enough for further expansion?
7. Have you done your research on new markets?
Expanding into unfamiliar territory is high risk. Ensure you know the new market inside and out before committing to opening a new location in a new city or country.
8. How will you hire new employees?
Recruitment and HR is time consuming. Have you considered how you will handle this task? Outsourcing HR responsibilities is another great move for businesses that are new to a country.
9. Is there a significant downside or loss if you do not expand?
Is there an opportunity screaming your name? If your business doesn’t expand, will you be missing out on something great?
10. How will you manage the stress that comes with expansion?
Studies suggest that activities such as reading, yoga, and laughing can greatly reduce stress levels. Do you have a plan in place for managing the added stress of business expansion? Does that plan extend to all staff?
11. How will you maintain quality service?
It would be a mistake to compromise your businesses service or product quality for expansion. Will you be able to ensure that your product’s quality remains unscathed by business expansion?
12. Are you committed?
This might seem like a silly question, but it’s perhaps the most important. Expanding a business takes time, hard work, and commitment. Is this a business venture that you are 100 percent ready to embark on? If there’s even a hint of doubt, it might be time to reconsider.
13. How do you get started?
If you’ve answered all the questions and still think business expansion is the logical next step, it’s time to get things moving. Request a quote from The Payroll Edge and see how a PEO firm can make the transition faster, more cost effective, and risk-free.