One decision many business owners eventually encounter is whether or not to expand their operations. Countless questions go into this decision and it’s never easy for owners to put a finger on when the right time is, or if there is ever a right time at all. Questions include can you afford it? Is there enough demand to warrant expansion?
Is the timing right?
This may be the hardest question to answer since it’s so difficult to quantify. Timing your expansion correctly is crucial because you don’t want to do it too early when you may not yet be ready. A smart way to get through this dilemma is to check your books. Have you been constantly outperforming your sales expectations? Have you been turning a profit each quarter? Are you finding that you are consistently selling out of inventory?
If the answer to any or all of these questions is “no,” then you not be a candidate for expansion. However, every business is different, but you will need to perform an analysis of your numbers before making any addition headway.
What type of expansion is right for you?
There are various ways to expand a business, some more ambitious than others. The most common form of expansion is evolving to the changing needs of your customers. This may include increasing your business offerings such as purchasing equipment or upgrading your inventory selection.
Customer service is another form of expansion and generally comes at a low cost. If you want to create a more loyal following among customers, increasing your customer service efforts to provide more support will help you gain more of a following.
Perhaps the most ambitious form of expansion is moving to a new location or opening up a second one completely. This type of expansion opens up the most possibilities within your business because it can potentially introduce you to an entirely new demographic of customers. Yet, cost remains a factor.
Getting the working capital you want
Expansion is always on the minds of small business owners nationwide, and AmeriMerchant can get you the working capital you want to do so. Our Merchant Cash Advance program can provide you with the financing to increase your inventory, purchase equipment, hire employees, and open a new location.
For more information, call us today at 1-800-267-390.