When you started your business on a shoestring budget, it was a one-person show. You eventually branched out and hired a couple of employees, and things have been growing steadily ever since.
But is your business expanding like it should? Knowing when it’s time to scale up is essential to your survival and the only way to avoid stagnation.
Signs you need to invest more in your business
As exciting as growth can be, it’s also scary to make commitments that mean additional expenditures of either money or effort unless you know you’re really ready. Here are the top clues that it’s that time:
- You have had to decline work. You may reject business opportunities for a lot of reasons, but turning down work because you haven’t got enough employees, equipment or space to do the job should not be a regular occurrence.
- You’ve hit all your old goals. If you met your initial goals for your business (or passed them), it’s time to reset the bar. Otherwise, you could find yourself sliding backwards.
- You’ve got a lot of repeat business. A solid customer base is part of the foundation you need before you expand. It does take more effort to bring in new customers than to keep old ones.
- You’ve got a very clear business model. You know what you’re doing and what you want to do. You may still be testing concepts and innovating, but your core foundation is firm.
- You’re concerned about liabilities. If your business is still operating without the protection of an LLC or incorporation, that’s leaving you personally exposed — which is not something you want as you expand.
If all this sounds familiar, it may be time to start working with a business law attorney who can help you evaluate your current business structure, decide if you need a new one and guide you through some of the more complex steps involved in financing, leasing and employee relations.