Negosentro | A Guide to Business Expansion: What you Should Know | We all know how tough things are when business is bad, which is probably due to factors that are outside our control, yet when the orders are rolling in and all seems to be going very well, you still have to keep your finger on the pulse. Business expansion doesn’t happen automatically and failure to see the signs can lead to your resources being seriously stretched and that can lead to many issues.
Setting up the infrastructure
Expanding business operations almost always involves building up your infrastructure and adding a second warehouse is possible with commercial construction loans from Fifo, Australia’s leading commercial financer. Looking at things long-term, real estate purchase is preferred to leasing, as a considerable amount of equity is there to be realised. Real estate acquisition could really set you up in the future and much like residential property, it’s all about location. If you buy a rural plot and this develops over the years, you are looking at a very high price and if you are in for the long haul, this is a wise long-term investment.
Think HR
It’s the people that make an organisation and if you need to hire key professionals, you will need the help of a leading recruitment agency, one that has the best professionals on their books. Lack of key staff could hold up your expansion plans and if you touch bases with the right agency now, they can source people as you have a need. Good managers are hard to find and most of the top people are working, yet they register with the best recruitment agencies in order to check for openings. If you need tips for logo promotion, click here.
Capital
It might be that most of your money is tied up in stock and equipment and a sudden injection of thousands of dollars is pretty much out of the question; show your bank manager your books and if you are doing well, they would likely work something out that enables you to go ahead with your expansion project. You may know a few private investors who have watched you build your business from scratch and they might be interested in becoming a sleeping partner.
No compromise on customer service
The golden rule is that no business expansion should come at the cost of a drop in standards; you still have to offer the same second-to-none service, while relocating and training new employees. It often happens when a growing business suffers a sudden loss of business, due to poor customer service during the expansion; this is not something you can afford to overlook. Outsource office relocation to the professionals and you won’t regret it, as this leaves your staff to focus on what they are supposed to be doing.
What do you need?
You do need to sit down and create lists of essential equipment and resources you will need in order to expand your operation. This might involve outsourcing, which is a good way to keep capital investment to a minimum, while you also need to crunch the numbers to see if you have the necessary funds to execute your plan. There are online commercial lenders that are happy to fund a growing business and you can expect an answer within a few minutes and a few days later, you have the funds.
The number of businesses experiencing growth are small when compared to those that are in difficulty, what with the covid pandemic, and with the right plan in place, you can upgrade your business infrastructure without impacting the business.
