Guest Post: How to Tell You're Ready to Expand Your Business?

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Every entrepreneur's dream is to make it big in the business sphere. Increasing sales and profits only mean one thing: a potential to grow. So, if you've been doing great for the past few years or even months, then maybe it's time to decide to get a taste of expansion. Just take a look at this classic example: the country's most loved fast-food chain, Jollibee.

On another point of view, expansion can be considered as a salvation for businesses that are suffering from economic storms. Instead of laying off workers or reducing production costs, they formulated new strategies to make their business more profitable.

Whatever your reason for considering an expansion, you need to give it a big thought. Will a new outlet spell greater revenues? Will a branch in a particular location be worth all the time, money and effort? Remember that even the smallest mistake can put your company at risk. So, before you set out to expand your business, consider these first:

• Finances.

Do you have enough financial resources for this particular expansion? Do you have supportive investors who can help you with this undertaking? In business and finance, you can only grow more money once you put your money as well.

• The location.

Perhaps you're thinking of establishing another branch. Think of it as putting up another company—you'll be dealing with an in-depth market research to prove how profitable the new location would be. For cost-cutting purposes, there's little need to construct a new building. Consider looking for possible places to lease such as a serviced office in Manila.

• The customer base.

Creating a new branch means exposing your business to new and more customers. As mentioned previously, keep in mind the importance of picking a strategic location for such.

• The manpower.

Do you have enough people to do the job for you? Do they have the necessary skills for that? You may either hire internally or outsource, depending on the nature of your business. The thing is, expansion often calls for more workers.

• Objectives.

Does the expansion fit your company's short-term and long-term goals? Remember that this big move could spell success or doom for the whole organisation. Take calculated risks in order to meet the objectives of your company.

Research suggests that business failures also stem from the company's lack of foresight when it comes to expansion. Such growth can definitely put a strain to the cash flow and the production capacity of the organisation. However, by making sure your business is stable and the ideas are carefully researched, this one great move will help you achieve your business goals.

AUTHOR BIOS

Regus PH is one of the Philippines' top providers of business solutions, most especially serviced accommodation such as meeting rooms, office spaces, video conferencing facilities, shared workspaces and virtual offices. They are currently located in three of the country's major cities, Manila, Makati and Cebu.