Most start-ups commence operations with the goal of expanding in the future. While the goal of expansion is certain, the timing of it remains uncertain for all such firms. In order to know when a start-up should begin to consider expansion, they should pay close attention to these triggers.
Stay tune to hunches
While a hunch may not be the most solid reason to start expanding, there is a chance that an entrepreneur’s hunch my turn out to be correct. If you are starting to get such a positive hunch regarding you’re firm, then you can confirm it with the help of business consulting firms in Melbourne.
As opposed to going on a gut feeling, business consulting firms do realistic, thorough appraisals, and by employing the services of one such firm, you will be able to validate your hunch, and go forward with the expansion.
If the demand for your product has been showing a steady growth over the past few years, then it is safe to say that the trend may continue in the future as well. In a situation like this, you should slowly start expanding, by maybe hiring a new employee, or by purchasing one extra machine. In addition, if you are getting sought out by people who request you to start providing management services outside of your usual area or demographic, then you can consider expanding within that area of demand as well. For example, if you are a retailer who sells women’s clothing, and you get more than a several requests from the mums that come in to your store, to start selling kids clothes as well, then you can consider introducing a limited kid’s line temporarily, to see what the reaction is.
If you are currently running under capacity, then it may be time to start expanding. Indicators of running under capacity include not being able to meet deadlines due to workload, employees complaining regarding over exhaustion, and constantly running out of stocks. If any of these situations prevail, then you may need to start hiring more employees or even be bold enough to start a new branch or an outlet. However it is essential that you do not fall into a trap of being misled by high seasonal demand, or random spikes in the demand that occur due to onetime events. For instance if you own a restaurant, and your closest competitor shuts down temporarily for renovations, this may result in an overflow of short-term customers. While some of these customers may enjoy your food, and remain to stay loyal even after your competitor reopens, there is a bigger chance that most of them would just go back to their old haunt.