Use these benchmarks to see if your business is ready to grow.
Growth is a great thing to see in your business. After years of hard work, you finally get to see some of the fruits of your labors when you’re on the cusp of growth opportunities.
That doesn’t necessarily mean you should jump right on them, though. Far too many business owners have scaled their businesses only to find they aren’t able to sustain the growth. If your business looks like it’s ready for change, use these guidelines to determine if growing your business is the right choice.
- Steady Cash Flow: You shouldn’t grow your business if you’ll have to revert back to relying on that month’s incoming revenue to make it happen. This puts you in a dangerous financial situation, especially since growth can bring unexpected expenses with it. Make sure you have enough cash flow to sustain your growth without tightening your budget.
- Sound Quality: Plenty of businesses have tried to grow by getting out more product or more service with the same resources and staff, but then quality suffers. Once the quality of your product or service decreases, you start edging yourself out of the marketplace. Grow as slowly as you need to in order to maintain a consistent quality.
- Solid Organizational Structure: When your team is small, it’s easy for you to oversee the details. As you grow, that becomes impossible. Hire and fully train good managers before you bring on more team members and increase operations so that you will have someone you can trust keeping an eye on every aspect of your business as it grows.
When you grow your business, you step out on a limb. Fortunately, you can minimize your exposure to risk with the right Hudson, NY business insurance. For all of your business insurance needs in Chatham, Hudson, and the nearby New York cities, contact Lofgren Agency. We are here to provide you with policies that can grow with your business.