Signs, signs, everywhere a sign…and if the Three Man Electrical Band were to have anything to say about it, knowing how to read the signs is the key to knowing when it’s time to expand your business. The following are some signs that it is time for you to up the ante and take a chance on growth and the rewards you can reap.
1. Consistent Profit
Look at your monthly, quarterly, and annual receipts over the past few years. If you have a solid trend of consistent profits then it is clear that you are successfully navigating the business environment. If profits are increasing and margins remaining steady, it is an opportunity to grow. Remember, pay attention to your profits, not your gross receipts. You may be having banner years for sales, but if you are not generating a steadily increasing profit you could expose yourself to razor thin profit margins and potential losses as you absorb the costs of expansion.
2. Area Growth
Communities expand and contract with the economy and it is crucial to pay attention to area vacancy rates, area incomes, property prices, and demographic changes. If your area is experiencing a sustained period of growth, then there is no time like the present to fill the need newcomers and rising incomes within the community create.
3. A Strong Team
Money and tools mean nothing if you don’t have a solid team. If your team is knowledgeable, skilled, and dedicated to the company, then they are ready to help you take the business to the next level. In fact, a solid team that you can depend on through an expansion is crucial for success. They are the backbone that will help absorb the additional work and challenges on the horizon.
4. An Opportunity Arises
Maybe your top competitor is going out of business. Maybe a prime piece of land is being offered to you for pennies on the dollar. Or, maybe a major factory has announced they will be moving into the area. Opportunities can come suddenly and from out of the blue. You will need to weigh these opportunities against your cash/credit position, staffing, and market. If you have green lights from every area of your business, you’d be wise to start implementing your growth strategy.
5. You Are at Max Capacity
If you are running out of room within your facilities, or you simply can’t keep up with client demand, then it is a clear sign you need to increase the size of your business. Be careful not to misread seasonal or short-term increases for long-term needs. Rather, pay attention to long-term trends. This can help you identify specifically how much new capacity you need to process at various points throughout the year. In turn, this can help you expand to just the right size.
6. Your Lead Pipelines are Pumping
If your affiliates and partners are generating an increasing number of leads and new orders for your moving company, then it is time to up your game. A solid and steady stream of interested leads who become paying customers is an indication that you are primed for growth.
Deciding to expand your moving business is a process that requires preparation and planning. Successful expansions start by thoroughly reviewing the details and determining the best way to position your company to move forward. If everything points to “go,” then don’t hesitate to take your business to the next level and the opportunities that are waiting for you just over the horizon.