As a small business owner, deciding to expand is an exciting prospect. A successful expansion of your business can improve profit margins, create a competitive advantage, and create more jobs in your community. As exciting as it is,
If you’re not preparing for these potential pitfalls, it could cost you your business. Here are five simple mistakes that many small business owners make when expanding. Avoid these pitfalls to set yourself on the path toward a successful and a lucrative expansion.
Losing sight of your customers’ needs
One of the biggest mistakes small businesses make when trying to expand is failing to understand their customers and what their customers want. As you’re planning your expansion, make sure you’re talking to your customers to understand their needs.
If you’re going to be expanding into a new market, or offering new products, don’t accidentally alienate your loyal customers for the sake of growth. Communication is key to ensure you have the support of your current customers as you expand your business. Give them behind-the-scenes updates about your plans, ask them for their feedback, and show your appreciation for their loyalty, as well as their contribution to the conversation.
Expanding without a proper action plan
When you were first starting out as a small business owner,
Lacking sufficient cash flow
If you’ve already got a stable cash flow for your business, it may be easy to overlook potential expenses that come along with the small business expansion. Are you opening a new location? Working with a new vendor? Spending extra money on advertising? All of these expenses and more can create stress on your already established business capital.
About
Neglecting your current employees
Your core employees have been a driving factor in the success of your business, and they’ll be critical as you expand. While you’re looking forward to bringing on new employees to the team, don’t forget to check in with the needs of your current employees. A group of strong, loyal, and well-trained employees will help keep the business running as you’re focused on growth.
One way to make sure your employees feel secure in their jobs is to create an
Failing to follow industry news and trends
Is this the right time for you to expand? If you’re going into a new market, are there external factors (taxes, business incentives, etc.) that could influence your decision? Especially in our hyperconnected world, the market moves pretty fast. If you’re not staying on top of changes impacting your industry, one wrong misstep due to incorrect timing could create major headaches for your small business.
Preparing for curveballs by dedicating the right resources to your expansion plan can keep you from failing when your small business should be thriving. Keeping tabs on your customers’ evolving needs, establishing a proper plan of action, preparing for potential
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