In theory, the opportunity to expand your business is a good thing. If you have attained business growth by increasing your customers and improving your profit margin, then expansion might be considered a no-brainer. You might want to move into new markets, take on new staff, and even move into bigger business premises. What’s stopping you? Well, it also pays to be mindful, so if business expansion has been something on your agenda, you might want to consider the pros and cons before you decide.
To grow or not to grow?
Pro: More people will benefit from your business.
As you expand, you might want to take on extra staff, so you are creating new jobs. If you move business premises or open up a second branch of your business, your product and service will benefit new customers. And you might benefit, as with more staff and with more customers, your business will grow further, and that will boost your bank balance.
Con: There will be costs involved.
If you take on more staff, you are going to have to pay more wages, including any other benefits that you need to pay out as an employer. If you move into bigger premises or take on a second branch, there will also be higher overheads. There are ways to cut costs in your business, so if you are looking to expand, you might also consider finding ways to reduce some of your regular expenses, so you don’t make any financial mistakes.
Pro: You will have an edge over the competition.
Bigger is better, right? Well, this isn’t always the case, but if you have the means to gain new customers and to reach new markets, then you might outrival your..erm..rivals! You might have more staff to market and promote your business. Bigger or second premises will mean you can up your manufacturing rate. And should your earnings rise along with the expansion, you will have the resources to improve your business and better the competition.
Con: Quality control might suffer
Taking on more staff is fine, but will have the time to manage them? Opening up elsewhere might be a good idea, but during the process, you might have less time to focus on your business. And if you employ staff in a second place of business, will you have time to oversee what they are doing, as well as check on the quality of work in your regular place of business? Of course, these things can be alleviated. You might train up leaders within your business to oversee new staff and a second facility. You can also rely on corporate relocation services to ease any transitions. But considering the work involved in any expansion, you need to start putting these things in place early.
Finally
To grow or not to grow? That is the question, but what is the answer for your business? We can’t answer that for you, but we hope our pros and cons have gone some way towards helping you decide. Let us know what you think, and throw in your suggestions to help our readers.
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