If your plans for 2022 include expanding your business, congratulations! We’ve all been there before, and lived to tell the tale, but there are always questions that need answering before you dive in completely. We’d like to help.
Remember, we’ve been in the business of helping companies attain the financing they need to grow their businesses since 1987. We’ve witnessed a lot of different scenarios, and gleaned excellent lessons to share with you.
So, before you launch into your growth plans, here are questions to consider about your motivations, your goals, and exactly how you can get from Point A to Point B.
How do you know when the time is right to expand? You’ll need to do a bit of soul searching here by asking yourself what you hope to achieve, whether you’ll be able to afford to hire new employees, how you’ll handle any permanent expenses that come with expansion and, if your bank account isn’t quite there, where you can find financing. (Obviously, we can help with that last question.) But perhaps the most important question is this: is expansion in the best interest of both my business and my personal life?
Let’s start with what you hope to achieve. Perhaps you need to improve your workplace or staff so that you can continue to meet existing customer demands. Maybe you’ve been preparing to offer new products or services, and the time finally feels right. Or, perhaps your business as it exists now is solid, and you’ve decided it’s time to expand your reach into surrounding areas. All of these are excellent motivators.
Now let’s look at the costs that come with expansion. Will you need to hire specialized staff, such as salespeople or qualified technicians? Will you have the money to pay their salaries, bonuses and benefits? If you’re expanding the footprint of your business, will you have the funds to pay for all that goes along with that, for example, increased utility costs, rent, equipment costs, and insurance coverage costs?
Add to these the costs you might incur if things don’t go according to plan. If you’re building and construction costs run higher than anticipated, will you be prepared? This is one area where we can help, but discussing your plans and helping you to anticipate any obstacles or hindrances. We’ve counseled hundreds of clients like you through expansions, and we encourage you, strongly, to take advantage of the knowledge we’ve acquired.
Finally, the last question—or the first, depending on your perspective—is this: is expansion the best thing for my business? There aren’t many things more gratifying than building a business from the ground up, seeing it succeed, and then getting ready to grow it some more. Ask yourself if the growth you have in mind makes sense for your business plan. Does it anticipate and possibly fill a growing need in your industry? Is it in an industry that shows great promise for the future? Is it work that you enjoy, and will continue to enjoy, for many years to come?
And finally, is expanding a business can take a toll on your time and energy, so be sure to ask yourself if the time is right? Will you and your family be able to handle the increased stress and time demands?
As your give careful consideration to these questions, please know that we are here to answer your questions and brainstorm ideas with you, from beginning to end.
Helping to grow businesses like yours is exactly why we got into this line of work in the first place.