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6 Signs That It’s Time to Grow Your Business
  • 28 November 2018
  • Tiffany C Wright

6 Signs That It’s Time to Grow Your Business

If you’re a typical business owner, you’ve invested weeks, months or even years to get your business to the point where you finally feel like you can relax a little and enjoy its success. Does that mean that you are now ready to grow your business? The answer is, it depends.

Although you are likely excited about the idea of growth and what that could mean for your business (and personal) bank account, you need to ensure that you are positioned for success once you do so. Here are six ways to recognize when it is time for you to grow your business.

1. You’re feeling unchallenged or slightly bored

If you find yourself in a bit of a rut doing the same things day in and day out to run your business, that could be a signal that you’re ready to expand.

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A small business can be similar to a classroom. There are constantly opportunities to learn and grow because there are so many different functions and market knowledge to know and understand. As an owner, on some level, you need to understand marketing, sales, accounting, employee management and so much more. If you’re no longer feeling challenged or if you are actually bored, your business has probably reached a plateau and it is time for you to grow it.

2. Opportunities are coming your way

A prospective customer may have heard of your business and approached you with a larger-than-usual order for goods or services. Or perhaps a business associate reached out to you to partner with her firm to provide a full suite of services to your respective customers. When options like these appear, you must recognize them as the opportunities they are.

However, to serve those opportunities, you will need to purposely grow your company. You may need to hire additional employees, move your business from your house to a separate office or obtain external financing.

3. You are tired of being a one-person band

When most people start a business, they usually start with only themselves as an "employee." As your business stabilizes and produces more revenue, you can begin to outsource some duties or hire your first part-time employee. In order to justify hiring more people and stop doing everything yourself, you need more revenue. To produce more sales, you need to grow your business.

4. Your business is regularly profitable

According to Forbes, if your business shows a healthy profit month after month, you are now well-positioned to focus on growing your business. Track your business revenue and expenses each month, then subtract out the expenses from your revenue to determine your monthly profits. If these are consistently in the hundreds or thousands (or more), you can reinvest some of these funds into expanding your business.

However, make sure that this profitability is a trend. If it is a one-time or infrequent occurrence, you need to wait and focus on strengthening your core business to be regularly profitable.

5. Customers are clamoring for more

You may have customers who periodically ask if they could place more orders with you or use more of the services you offer. However, you repeatedly have to either turn them down or schedule them further out because your business as it stands cannot handle the increased demand.

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This is definitely a sign that you are ready to grow. First, make sure that this additional business will be profitable. In other words, if you do not have the capacity to handle the business now, you will need to hire, outsource, partner or build to keep up with that demand. You want to make sure that you plan accordingly to bring on the additional resources to meet the growing needs.

6. You see new market developments

A key skill to develop in order to be a successful entrepreneur is the ability to spot market and industry trends and developments – and to act on them. If you see a shift in your market or industry, you want to generate ideas about how you can leverage those changes to grow your sales, profits or market penetration.

Do your due diligence first, then take action. Talk to other industry players, interview prospective customers or investigate how a similar technology or process is used elsewhere.

There can be multiple signs that it’s time to grow your business. The key is to be able to recognize these. Look at what’s currently happening while also forecasting what could happen in the next year or two so that you can position yourself for both short-term and long-term success.

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