26 Jul

GOLDEN RULES FOR EXPANDING BUSINESS

1.PRIORITIZING THE TEAM
Entrepreneurs often wear many hats out of necessity, handling the core work of the business, as well as other tasks like marketing, accounting and human resources. While it might be difficult for entrepreneurs to hand over control of some aspects of their business, doing so is necessary when growth is the goal.Acknowledging that you can’t do it all is an important step in opening your business up for growth opportunities. Additionally, bringing in good people who are experts in their fields can help inspire your work and get your business on the track for progress.

2. JOINING HANDS WITH LARGER PARTNER
Small businesses can often take advantage of partnering with a larger, more established company when they’re ready to scale. Big companies have the footprint and resources required for growth, including manufacturing facilities, distribution channels and a proven supply chain. Though it might be tough negotiating with larger partners, many can be enticed by deals that pay a fee per sale.

3.REINVESTING IN THE BUSINESS
A lot of business owners pull money out of the business to pay themselves. When the business is experiencing success, the owner might be tempted to take a significant amount out as a reward for his or her hard work. In most cases, this money would be better spent on the business: to hire or retain top talent, improve training or invest in inventory. By keeping the money in the business, the rewards for the business owner could be exponentially greater down the road.

4.KEEP THE CASH FLOWING
Growth can put a strain on cash flow, and that’s why many businesses fail while attempting to grow. It is important to ensure you have a robust cash flow before attempting any kind of expansion. During your growth phase, be sure to forecast and monitor cash flow diligently. A small business loan can help ensure cash flows smoothly when inevitable challenges present themselves.

5.DIVERSIFY (VARIETIES IN BUSINESS)
If you focus on only one product, your business growth is already limited. By diversifying your product line, you open up new revenue streams that can boost your company. Just be sure your primary products are successful and selling well before you concentrate on something new, as you don’t want to spread your resources too thin.

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