Advice for Business Growth
BMO SmartSteps for Business, provides straightforward advice on the questions you should ask yourself before you expand your business.
You are in business and you are making a profit. Orders are coming in, profits are up and you are considering expanding your product line or adding an additional location. Keeping an eye on the fundamentals – cash management, your competition and managing staff and expectations – can help sustain your expansion for the long run.
Questions to Ask Yourself
- Do I have the necessary capital to finance my growth?
- Am I doing everything I can to keep a healthy balance of work and personal life?
- Do I know what the competition is doing?
- How will the competition react?
- Am I expanding too quickly?
- Can I handle the stress of managing a much larger business?
- Do I want to grow for growth’s sake or because it will be more profitable?
Things to Watch For
- Staffing up too quickly
- Accounts receivable that are not being collected
- Increased inventory costs
- Expansion without a solid capital base
- Overworked staff
- Organization growing out of control
- Inefficient Cash flow management
Keys to Survival
- Follow your Business Plan
- Keep your financial partners informed of any major expansion or change
- Expand in areas where you have experience and can make a profit
- Listen to your customers and adjust your approach
- Delegate more
- Have proper control systems in place to manage growth