When is the Right Time for Growing Your Business?
In business, it is easy to become overly excited about profits and strong sales. While both are excellent and arguably two of the reasons you are in business, you do not want to jump too quickly and put the cart before the horse. At the same time, fear is a killer of companies. And no one wants to contemplate missed opportunities.
Knowing when you should put plans in motion to grow your business is crucial. There are several signals that it is likely time to expand your company. Things like your staff tripping over each other, orders backing up because your production cannot keep up with demand or being stretched to the limit trying to satisfy everyone indicate the need for growth. However, looking at your company and its readiness for growth from a financial perspective offers you a practical standard of measure.
Numerous indicators point to your need to grow your business. Here are five that will lead you to that conclusion.
1. You Have Cash Reserves that are Not Working for You
When your company begins to make a profit, saving the money is a brilliant idea. Most experts agree that having at least two months of cash reserves is essential. Beyond that amount, your cash is stagnant and not earning much for you.
To get more from the money you earned, you would be wise to work with a financial specialist. Insight from someone with financial savvy can help you decide the best way to maximise your profits.
2. Most of Your Revenue Comes from a Single Source
It is hard to take issue with a steady cash flow, reliable orders, and bills paid with a surplus for saving. The question that surfaces here is, do you know the source of your money?
When you look over your financials, seeing that a significant portion of your business and revenue comes from an individual source is a red flag. It is also a signal that your business needs to reach out further beyond your current comfort zone.
Any financial professional can give you examples of disastrous repercussions when a company could not rely on their best customer’s business.
A plan for growth made by a professional with a proven track record can save your business from this kind of over-dependence.
3. Your Skills are Not Enough
Many people struggle with the idea that their company has reached a level of success where it needs more than what it can provide.
The truth is this is a great sign of a need for growth. It means that you built a business that has outpaced your expertise, and moving forward is a must. You may make the best gourmet pies anywhere, but payroll and tax matters are not your specialties.
However, your growth in this situation needs oversight from a financial expert. It is very easy to leap into an expensive and ill-conceived business transformation when all you may need is a skilled technologist.
Advice from a skilled financial advisor can help you take the proper steps in your growth journey.
4. A Perfect Opportunity Arises
Whether it is the right piece of property, an idea that will revolutionise an industry or an excellent product to add to your line, this brilliant combination of what you need where you need it can take business owners by surprise.
However, if your company is steadily able to make a move in an ideal situation, you stand to make tremendous profits and shake up your niche doing it.
This kind of go big or go home growth means you must be farsighted enough to prepare for the opportunity financially. Financial planning with an eye to the future can set you up to take advantage of such opportunities. Additionally, advice from a skilled financial professional can also help you spot a golden opportunity that you might have missed.
5. Complacency Starts to Erode Your Business
You may have heard the adage that says you are either advancing or declining. There is no standing still. This proves to be true in several situations, and it is common in the business world.
You may not be aware of the issue; a sense of being comfortable can sneak into your company. It is not always obvious. It is often subtle. Once it has a hold on your company and employees, complacency can destroy your business from the inside out.
To keep complacency at bay, many business owners work with an advisor. Someone with experience who has a vantage point just a step or two outside the company is ideal. Often it will take a mentor, financial advisor, or accounts manager to point to facts and figures and wake you up to the pervasive casual attitude infecting your operation. Growth is the opposite of complacent stagnation and can be precisely what you need to reinvigorate your business.
It is easy to feel overwhelmed when considering business expansions. However, decisions regarding business growth are critical and cannot be left to chance. At M2 Corporate, your financial success is our business. By partnering with our team of experts, you will get the advantage of our years in the industry guiding you in the best direction.
We encourage you to contact us and take advantage of M2’s initial consultation at no cost. This is the perfect chance to outline your concerns and receive an honest assessment of what we can accomplish together. We also provide you with a document explaining what you can expect from our professionals at M2 Corporate, our fees, and a time frame so you will not need to think about unpleasant surprises.