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Except you are not ready to listen to Isaac Newton’s law of motion that says, “An object at rest stays at rest or an object in motion stays in motion unless it is affected with an external force. The object here can be likened to business, and the external force is you; you stay the way you are until you think about changing your situation by expanding.
There will come a time when you will consider business expansion to keep up with competitors and ever-rising bills. It will not be an easy ride because the road to success is full of obstacles, and you might have a bumpy ride if you don’t wait for clear signs.
Signs That Show You Are Ready To Expand Your Business
Business expansion is inevitable for serious-minded entrepreneurs, but they have to tread carefully not to fail in their endeavor.
After starting your business, you will start experiencing growth after some months, which indicates you are doing well but doesn’t necessarily mean your business is ready for expansion? Well, no! This is because business takes time to develop, and business expansion without greenlights might spell doom.
- You Already Planned For Expansion
Every start-up has a business plan which will include plans on how the business will thrive and, if necessary, an expansion. If you fail to plan your business expansion from scratch, then expanding all of a sudden can prove abortive.
Your business expansion plan should include how long you need to prepare your business before expanding and how to gain your ground in the new market, which includes business registration, recruitment process, and physical space.
- When Customers Start Asking For A Solution You Don’t Have
One of the greatest mistakes an entrepreneur can make is creating a solution way before the problem; you might think you are on the right track because you don’t want to miss on inventing the next human’ problem but have you thought about your solution not satisfying customers needs?
The best entrepreneur is the one who listens to his customers; they are the reason why your customers keep existing. If your customers are asking for a solution you don’t have, then consider that as a green light to expand your business so as not to lose customers.
- Demands Are More Than Supplies
If you’re constantly bombarded with demands more than the supplies you receive, then it’s time to consider an expansion. As discussed above, not yielding to customers’ requests might cause failure.
- If You Have The Capital
Business expansion is similar to starting a business afresh, and it is important to know that if starting a business will cost $10,000, you should know deep down within you that the capital you need is x4 of the start-up capital, which is $40,000. This will help you recover if you experience a relapse or need money for miscellaneous expenses.
If you have enough capital for business expansion, it shows your initial business is doing great, and you are ready for the next challenge.
- If You Are Familiar With The New Market
Business expansion without due diligence will leave dents on your financial records, which means you will only waste money on a failed course. Before expanding, list out your preferred countries and state why you want to expand there.
For instance, China, Japan, and India have a high number of customers because of their population, while countries like Dubai, Singapore, and Malaysia have a high number of tourists, so you might consider expanding a hotel or Airbnb business in these countries.
Also, countries where businesses thrive have guides, so you might want to consider this before expanding. With enough customer base and a high number of tourists, you might want to expand to Singapore since it is an Asian country while investing heavily in Singapore business guides for a smooth expansion.
- If You Have Established Authority In The Present Market
Business can be boring without competitors to keep you on your feet. If you have beaten your competitors in all aspects, then you should consider business expansion since you have full control of the market.
- You Have A Reliable Team
If you have reliable employees that handle your business like it’s theirs, then you can consider expanding to focus on the new market. This goes hand in hand with a lot of cash because your employees can only put in the effort and not their money. So, if you have enough capital and your team is capable, then give the business expansion a shot.
- When You Know It’s Right
The signs will be all over your business if your business is ripe for expansion. Your customers, team, capital, and even competitors will help provide the greenlight; all you need is to stay alert and wait for the perfect time.
Conclusion
If your business is thriving, it is normal to feel things will always go right, and you might want to consider expanding immediately. Business expansion doesn’t work like that; you need to study your business and pay attention to greenlight to confirm if it is not a false call.
Your business might experience a surge during festive periods, but that doesn’t mean it’s a green light for expansion. Stay vigilant of indicators like a reliable team and familiarity with the new market, amongst others.
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