Keep It Going
One day – it usually takes at least eighteen months – your hard work will be rewarded and your business will be up and running successfully. To keep your business operating successfully, you must continue to pay attention to how your business is performing, especially in three areas.
- Your finances: Watch your expenses and your revenue carefully. Find a good bookkeeper or accountant to help. As time goes by you may see that your revenue and expenses change at different times of the year. You will learn to predict when these changes take place, because your success will depend on how you respond to the highs and lows of the “business cycle” – the regular periods of increasing and decreasing business activity.
- Your employees: Your business depends on its people. Always treat your employees fairly. If your employees feel like valued members of the team they will work hard to make sure the business is a success.
- Your market: Marketing and promoting your business never stops. You must always work to “keep your customer satisfied,” and to find new customers.
Growing your business is like nurturing your child.
It’s important to review your core business regularly. Can you make your products or services better? Are you still meeting your customers’ needs? Ask your customers why they buy from you. Keep track of what your competitors are doing.
When do I expand?
Always look before you leap. Once your business makes it through the start-up phase, revenues and costs should become more predictable. One day you may see an opportunity to take a major step forward, an opportunity to make your business bigger, and increase your profits.
Just as you did when you started, take some time to plan. Talk with people in your network to get advice and some reaction to your “big idea”. Getting bigger = more costs.
- Higher costs from moving and purchasing new equipment
- Higher rent
- Higher payroll
- Higher utilities bills
- More financing charges for new equipment or other large assets
- Greater record keeping requirements
- Greater sales and marketing requirements
- Greater management requirements
If you are careful, and your revenue can support the added expenses, getting bigger is a good idea!
Resources
Seven Steps to Help You Start Your Business