Entrepreneurs are
decision-makers. They take decisions on the path or direction to drive their
business. One of such decisions they have to take is when to expand their
enterprise. Whether you get it right or wrong, your conclusions will have a
groundbreaking impact on your business. Obviously, you do not want to get such
a key decision wrong and join the approximately 70% to 80% of startups that
fail within 5 years in Africa. As such, here are the things you have to consider before expanding your business.
A clear strategy
The strategy is laying a clear roadmap ahead for the company to
achieve its vision and mission. Without this, your expansion may be a totally
foolhardy risk.
Stability of your financial report
You should look to the data contained in your financial reports
to determine the viability of an expansion at the current moment. The reports
should show increasing profits, a firm handle on salary payment and good
control over purchasing expenses.
Relationship with customers
The truth is most companies in their early days do everything to
keep their customers happy, and during their expansion phase, they fall apart
in terms of customer service. Take this opportunity to build a rapport with
your target group to win them over to your side. This is essential if the
relationship is strained. If you cannot keep your customers happy, you really
have no business expanding because there will be endless complaints which will
not only ruin the reputation of your business but can also lead to business
failure when you start losing them.
Effectiveness of your workforce
A business depends on a well-trained, effective workforce to
handle day-to-day activities. If you can rely on your staff to do their work
tasks in an efficient manner, no matter what conditions throw at them, you are
ready to utilize this essential resource to expand your business.
Funding
Funding is perhaps the most important. Without capital, the
business expansion will be near impossible. One trending way to get funds is
through venture capitalists or serial investors who are willing and ready to
invest in viable businesses. Don't hesitate to take advantage of them by
pitching to them. If your pitch is endorsed, they will pump money into your
business and you can then expand.
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