February 17, 2015
It’s the dream of many an entrepreneur to take their small start-up to the next level. Before you do that though, you should know that trying to grow too big before you’re ready can kill your business as StartupGenome’s survey of over 3200 entrepreneurs found.
Growing your business and your sales revenue may sound ideal but before you rush to do so, you should make sure you have the basics covered. We’ve talked about ensuring that you have the necessary capital to grow in this post, but there are some other key fundamentals you should have in place before you pursue a big growth leap.
1. Are you confident that there’s a larger market for your products? Perhaps you’re going outside of your geographic area or outside of your target market in order to gain sales. Do you know that there’s demand for your products when you step outside?
2. Have you developed a plan on how you’re going to reach that new market and grow sales? Unfortunately, just because you offer a great product doesn’t mean people will come flooding in to buy it. You need to have a marketing plan in place and this is especially true as you plan to grow your business. Keep in mind that this may also require capital to execute on that marketing plan.
3. Is your business running as seamlessly as possible already? Can you, from an operational standpoint, produce more product when the orders come in? Seriously think through ever aspect of your operations and determine where you might be able to minimize complications or speed up the process without compromising on quality.
4. What about the administrative aspect of your business, is that also running smoothly and requiring the minimum of time? Are you spending hours on keeping your accounting books up to date? If so, perhaps it’s time to consider outsourcing that or other administrative tasks so that you can focus on what you need to do to grow the company. As your business grows so too will the administrative tasks associated with the running of your business so you need to make sure you have processes in place now to keep things moving forward.
5. Lastly, and perhaps most important, do you actually want to grow your business? If your end goal is to create a nice lifestyle business and you’re already there then growth, while tempting, may not be the right step for you right now.