When you set out to run a business, you also take on the responsibility to start making the tough decisions. Throughout your journey as an entrepreneur, you will be the one deciding what actions to take and how to handle obstacles – and even if you’re up for the overall challenge there are some points that will stretch you.
Believe it or not, one of the biggest struggles you will face is growth in your business. When you first get started, factoring growth into your plans can be difficult to gauge. Afterall you have no idea if your ‘business baby’ will even take off. But there are a few thing that you’ll want to tuck away in the back of your mind; so that you’re prepared for the coming success. In this post will explore a few of the most common decisions you’ll have to make to ensure that your business continues to flourish.
when do you actually need a physical location?
Most small businesses start in living rooms, garages or home offices, but there will come a time that you’ll outgrow these starter spaces. The hard part comes in when you’re trying to decide the next move. Getting to the next level often means expansion… and this can be unchartered waters.
Finding the right commercial property for lease or purchase can be difficult and shouldn’t be taken lightly. Do your research up front. Understand the market and get sound advice. Only get the additional space you need. For example, if you only need a larger office or storage, don’t run out and rent an entire building or warehouse.
are you ready to start hiring full-time employees?
Along with needing more space, a growing business usually means you’ll need more hands; and that it’s time to start thinking about hiring people. You essentially have more work than you do capacity. When this happens, don’t panic. There are alternatives to bringing on full-time employees, many of which can be much less expensive to start with. Look into temp agencies and task-driven gig opportunities (using apps like Task Rabbit); or consider hiring contract workers that only work for a specific amount of time – this helps you to avoid the commitment of having a permanent payroll expense.
Tip: If you have tasks that can be handled virtually, consider websites like Freelancer and Upwork that help you to find and hire temporary contract employees that work remotely. Enabling you to save money on both the recruiting and hiring process.
how do you handle your growing financial responsibility?
The last area to consider is your growing revenue. Business owners often like to confuse revenue with profit and start to scale their business before it has reached the ability to sustain certain levels of debt and financial commitment.
- Make sure that you are allocating funds correctly. Meaning, pay attention to where your money is going. Ask yourself am I reinvesting enough? Do I need additional inventory or manpower? …and is the business financially secure enough to make this purchase or investment?
- Save for a rainy day – it’s always better to be overprepared than caught off guard with business emergencies or unexpected expenses.
- Have a plan for every dollar that you make and don’t borrow what you don’t need or can’t repay.