3 Obstacles to Expanding Your Business
If you’re consistently attracting new customers and finding yourself overloaded with work, then you may find yourself ready to expand your business. While this idea is an exciting prospect, it is one you must consider carefully. Before proceeding, take heed of the following three obstacles that can stand in your way when you’re looking to expand your business.
One of the most significant parts of expanding is building a new office to accommodate your growing business needs. While you can rent a space, many business owners choose to develop so that they can customize their offices to their exact specifications. The national average cost to build an office is about $196.49 per square foot, meaning that new construction won’t be a cheap endeavor.
However, you may be able to save some money by renting your construction equipment. Backhoe and other earth-moving equipment rentals can cost less than allowing your contractor to use the company’s equipment. You’ll pay only for the equipment when you need it, and you can get a wider variety of tools to make the job go smoother. Even though renting may sound like a small way to save money, every penny counts when your business development is on the line.
At first, your employees may be reluctant to share your grand vision of expansion. In fact, they may be afraid of job stability, leading them to consider other employment opportunities. As the business owner, your job is to ensure them that the business will remain stable. To help them stay calm, be open with them about all the upcoming changes. Be sure to lay out your vision so that they have a good idea of what steps you’re taking and what you expect the future to look like.
Additionally, you should try to personalize tasks for each employee so that everyone feels valued through the transitional process. Follow up with any feedback or comments so that you can get a good grasp on the overall mindset of your workforce.
Even though you’re experiencing unprecedented sales, don’t interpret this success to mean that the time has come for you to expand your business. Doing so could put your business at risk. Instead, study the market so that you don’t place money into an economy that’s about to collapse.
To take this step securely, take a look at some of your business reports. You’ll want to gather information on product profitability, sales conversions, and current market trends. Considering your competition is also a considerable part of this decision — a competitor company may already have a firm grip on the market —you may not decide to place all your capital into expansion. If the playing field looks somewhat uneven, you may want to hold off until the situation gets steadier.
All of these factors should not discourage you from expanding your business. Now that you’re knowledgeable about some of the roadblocks you may face, you should be easily able to circumvent them and tackle your expansion with ease.
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